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100+ Free NM CID Business and Law Practice Questions

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2026 Statistics

Key Facts: NM CID Business and Law Exam

75%

Passing Score

PSI NM Contractor Bulletin 4/3/2026

50 Q

Official Exam Questions

PSI NM Contractor Bulletin 4/3/2026

130 min

Time Allowed

PSI NM Contractor Bulletin 4/3/2026

USD 68.88

PSI Exam Fee

PSI NM Contractor Bulletin 4/3/2026

Open book

Exam Format

PSI NM Contractor Bulletin 4/3/2026

New Mexico CID Business and Law is the PSI exam for new contractor candidates: 50 questions, 75% pass (38 points), 130 minutes, USD 68.88 (bulletin 4/3/2026).

Sample NM CID Business and Law Practice Questions

Try these sample questions to test your NM CID Business and Law exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What passing score does NMAC 14.6.3.8 and the PSI New Mexico Contractor Examinations Candidate Information Bulletin require on the Business and Law Examination?
A.70 percent (35 of 50 points)
B.75 percent (38 of 50 points)
C.80 percent (40 of 50 points)
D.85 percent (43 of 50 points)
Explanation: NMAC 14.6.3.8 G(2)(c) and the PSI bulletin (updated 4/3/2026) both set a passing exam score at 75 percent or higher. On the 50-question Business and Law exam that is 38 points, with 130 minutes allowed.
2Under NMAC 14.6.3.8, a qualifying-party certificate may be issued only to an individual who is at least:
A.16 years of age
B.17 years of age
C.18 years of age
D.21 years of age
Explanation: NMAC 14.6.3.8 E(1)(a) issues qualifying-party certificates only to individuals who are 18 years of age or older. Separately, no business entity that is majority-owned by a person 17 or younger is eligible for a contractor license.
3Which statement about a New Mexico CID contractor license is correct under NMAC 14.6.3.8 and NMSA 1978 Section 60-13-18?
A.The license is not transferable and may be used only by the entity to which it is issued
B.The license may be sold with the business assets if the buyer keeps the same qualifying party
C.The license automatically transfers to a surviving spouse on the death of a sole proprietor
D.The qualifying party may lend the license to a related company for a single project
Explanation: NMAC 14.6.3.8 A(3)(c) and NMSA 1978 Section 60-13-18 state that CID licenses are not transferable and may not be used by any person other than the licensed entity. Permitting another person to use the license, or failing to notify CID of such use, is grounds for discipline up to revocation.
4A licensed New Mexico contractor wants to bid using a trade name that is not the name shown on the CID license. What does NMAC 14.6.3.8 require?
A.The contractor may use any registered trademark if the license number is also shown
B.The contractor may use a DBA after filing it only with the county clerk
C.The contractor may use a shortened version of the licensed name on bids
D.The contractor may engage in contracting only under the exact name shown on the license
Explanation: NMAC 14.6.3.8 A(3)(d) authorizes only the entity as named on the license to engage in contracting. No licensee may contract using a name other than the name shown on the license. A name change is not effective until CID approves it and posts it in the licensee database.
5What proof of financial responsibility must a New Mexico contractor furnish at initial licensure and as a condition of each renewal?
A.A cash deposit of USD 5,000 with CID
B.A USD 10,000 surety bond underwritten by a corporate surety authorized to transact business in New Mexico
C.A personal guarantee from the qualifying party for USD 25,000
D.A certificate of deposit equal to 10 percent of the prior year's volume
Explanation: NMAC 14.6.3.8 C(1) and NMSA 1978 Section 60-13-49 require a USD 10,000 bond underwritten by a corporate surety authorized in New Mexico. The bond must remain in effect for the entire license period; maintaining it is a condition of licensure.
6Before an applicant may sit for a New Mexico qualifying examination, NMAC 14.6.3.8 generally requires documented work experience of:
A.Two years at any time in the applicant's career
B.Three years within the five years immediately prior to application
C.Four years within the 10 years immediately prior to application
D.Five years of consecutive New Mexico employment
Explanation: NMAC 14.6.3.8 G(2)(a) provides that no qualifying-party applicant is eligible to take a qualifying examination until the applicant documents four years of satisfactory work experience within the 10 years immediately prior to application. Military expedited applicants follow a different documentation path.
7How does NMAC 14.6.3.8 credit accredited technical training toward the qualifying-party experience requirement?
A.Each year of equivalent accredited training counts as one-half year of experience, and training may not exceed one-half of the total experience requirement
B.Each year of accredited training counts as a full year of experience with no cap
C.Accredited training may replace the entire experience requirement if the school is NASCLA-approved
D.Only New Mexico apprenticeship hours count, and they count hour-for-hour
Explanation: NMAC 14.6.3.8 G(1) allows accredited college, university, manufacturer, technical-vocational, or apprenticeship training in lieu of work experience. Each year of equivalent training is applied as one-half year of experience, and accredited training may not exceed one-half of the total work-experience requirement.
8Payment from the New Mexico contractor license bond required by NMSA 1978 Section 60-13-49 is used to:
A.Pay the contractor's unpaid material suppliers on every private project
B.Guarantee the owner's completion costs if the contractor defaults
C.Reimburse CID for examination and renewal fees
D.Cure CID-certified code violations caused and not corrected by the licensee
Explanation: NMAC 14.6.3.8 C(3) states that payment from the Section 60-13-49 bond shall be used to cure division-certified code violations caused and not corrected by the licensee. It is not a general payment or performance bond for project creditors.
9A CID inspector issued a final inspection on March 1, and the local building official issued a certificate of occupancy on April 15 of the same year. Under NMAC 14.6.3.8, a claim against the contractor's USD 10,000 license bond must be made within:
A.One year after the certificate of occupancy
B.Two years after the final inspection, because that date is earlier
C.Two years after the certificate of occupancy, because that date is later
D.Three years after either date, whichever the claimant prefers
Explanation: NMAC 14.6.3.8 C(4) requires bond claims within two years following final inspection or within two years of issuance of a certificate of occupancy, whichever is earlier. Here the final inspection is earlier, so the two-year clock runs from March 1.
10A qualifying party wants to qualify two separate New Mexico licensed entities that are not a joint venture. What common-ownership rule applies under NMAC 14.6.3.8?
A.The qualifying party may qualify any number of entities if each pays a separate exam fee
B.The qualifying party may qualify two entities only if they share the same registered agent
C.The qualifying party may qualify more than one licensed entity only if there is at least 30 percent common ownership among the qualified entities
D.The qualifying party may never qualify more than one entity, including a joint venture
Explanation: NMAC 14.6.3.8 E(3) provides that no individual may qualify more than one licensed entity, other than a joint venture, unless there is at least 30 percent common ownership among the qualified entities. CID may require satisfactory evidence of that ownership.

About the NM CID Business and Law Exam

The New Mexico CID Business and Law Examination is the open-book PSI exam required of all new contractor qualifying-party candidates unless they complete a CID-approved Business and Law course. The official exam has 50 scored questions, a 75% passing standard (38 points), and 130 minutes allowed. PSI lists the fee at USD 68.88 (Candidate Information Bulletin updated 4/3/2026). This English-language MCQ bank is a study aid for the official content outline; it is not an official PSI form and does not replace CID application review, a required trade examination, an approved course, or the official open-book examination.

Questions

50 scored questions

Time Limit

130 minutes

Passing Score

75% (38 of 50 points)

Exam Fee

USD 68.88 (PSI Services LLC (for New Mexico Construction Industries Division))

NM CID Business and Law Exam Content Outline

16%

Licensing Requirements

CID licensing, qualifying-party certificates, and NMAC Title 14 contractor rules (8 items)

10%

Estimating and Bidding

Estimating, bidding, and proposal practices (5 items)

16%

Business Organization and Financial Management

Entity types, accounting, and financial management (8 items)

10%

Tax Laws

Employment, sales, and contractor tax obligations (5 items)

8%

Labor Laws

Wage, employment, and labor compliance (4 items)

10%

Project Management and Lien Law

Scheduling, supervision, and New Mexico lien concepts (5 items)

16%

Contracts

Construction contracts, change orders, and disputes (8 items)

8%

Risk Management

Insurance, bonds, and risk allocation (4 items)

6%

Environmental and Safety

OSHA and environmental compliance (3 items)

How to Pass the NM CID Business and Law Exam

What You Need to Know

  • Passing score: 75% (38 of 50 points)
  • Exam length: 50 questions
  • Time limit: 130 minutes
  • Exam fee: USD 68.88

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NM CID Business and Law Study Tips from Top Performers

1Study the approved references listed for Business and Law in the current PSI New Mexico Contractor bulletin (updated 4/3/2026)
2Practice open-book navigation of NMSA Chapter 60, Article 13 and NMAC 14.6.3 with permanent tabs only
3Memorize the 75% passing standard, 6-month eligibility window, and 1-year score validity
4Confirm qualifying-party experience documentation with CID before scheduling with PSI
5This bank is an English-language MCQ study aid, not an official PSI form

Frequently Asked Questions

How many questions are on the New Mexico CID Business and Law exam?

The official PSI examination has 50 scored questions. Passing is 75% (38 points) within 130 minutes (Candidate Information Bulletin updated 4/3/2026).

How much does the New Mexico CID Business and Law exam cost?

PSI lists USD 68.88 for the Business and Law examination (bulletin updated 4/3/2026). CID qualifying-party application and license fees are separate.

Is the New Mexico CID Business and Law exam open book?

Yes. PSI allows the NASCLA Contractors Guide to Business, Law and Project Management (Basic 14th Edition), the New Mexico Construction Industries Licensing Act (NMSA Chapter 60, Article 13), and NMAC Title 14, Chapter 6, Part 3. Temporary tabs such as Post-it notes are prohibited.

Do I still need a trade examination?

Yes, unless you only need Business and Law. New contractor candidates must pass this exam or an approved course and also pass the trade examination for the requested classification. Both must be passed within one year of each other.