10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The TN-BL exam has 50 questions and runs 2 hours 30 minutes.
These 10 free TN-BL questions are organized by exam domain, so you can see how each part of the Tennessee Contractor Business and Law Examination blueprint is tested. Reveal the answer and explanation under each question.
A controller discovers that one accounts-payable clerk can create vendors, approve invoices, release electronic payments, and reconcile the bank account. Which change best reduces the opportunity for vendor-payment fraud without disrupting legitimate purchasing?
Correct answer: B - Separate vendor setup, payment authorization, and bank reconciliation among different people
An owner tells a supplier that the project superintendent may place routine material orders. The owner later revokes that authority privately but does not notify the supplier. The superintendent then places another routine order, and the supplier relies on the owner's earlier representation. Which doctrine most strongly supports binding the company to the order?
Correct answer: D - Apparent authority
A Tennessee owner plans one renovation with a total labor-and-material cost of $27,600. To avoid licensing requirements, the owner proposes issuing the same contractor three separate $9,200 purchase orders for the project. What is the proper licensing conclusion?
Correct answer: A - Treat the work as one $27,600 project; the contractor-license threshold is met
A contractor's current assets are $310,000, current liabilities are $190,000, total assets are $610,000, and total liabilities are $450,000. Assume the financial statement is accepted, the contractor is not using the BC-A/r classification, and no other restriction applies. The contractor wants to submit a $1,280,000 bid. Which statement is accurate?
Correct answer: C - The base limit is $1,200,000, and the $1,280,000 bid is within the ordinary bid tolerance
The lowest mechanical subcontract quote excludes controls, startup testing, freight, and the payment bond required by the bid documents. Two higher quotes include all four items. Before recommending an award, how should the estimator compare the proposals?
Correct answer: D - Level every quote to the same scope and commercial assumptions before making the selection
An estimate shows total project cost of $720,000. Management requires a 20% gross margin measured on the final selling price, not a 20% markup on cost. What bid price meets that requirement?
Correct answer: A - $900,000
On a covered public bid, the apparent low bidder has adequate experience, staffing, finances, and licensing, but omitted the required signed bid bond from its submission. How should the omission be classified?
Correct answer: B - The bid may be nonresponsive even though the bidder appears responsible
During excavation, the owner directs the contractor to install a redesigned shoring system immediately under a contract clause permitting unilateral changes. The contractor must proceed, but the price and time adjustment have not been agreed. Which instrument fits this situation?
Correct answer: C - Construction change directive
On a covered Tennessee commercial project, an undisputed progress payment is past due. The contractor serves the required written stop-work notice on the proper parties today, and no additional contractual waiting period applies. What course is consistent with the Tennessee Prompt Pay Act?
Correct answer: B - Wait through the 10-calendar-day cure period, then suspend only if the payment remains unpaid
At the status date, a project has planned value of $800,000, earned value of $720,000, and actual cost of $600,000. Which pair correctly states the cost and schedule performance indexes and their meaning?
Correct answer: D - CPI 1.20 and SPI 0.90: under budget and behind plan
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