Free CA-PI Practice Questions

Question 1

A licensed PI company's qualified manager resigns effective today. The owner is not qualified and wants the company to continue its existing investigations while a replacement is sought. Which plan complies with California requirements?

Accepted Answer

Notify BSIS within 30 days and ordinarily secure a replacement within 90 days

Answer

Keep operating until the next license renewal, then identify a new manager

Answer

Stop every investigation immediately and dissolve the licensed entity

Answer

Notify only the Secretary of State because manager changes are corporate matters

Question 2

A California PI LLC has 12 LLC members named in its licensing records. What minimum aggregate errors-and-omissions coverage is required under California's PI LLC insurance schedule?

Accepted Answer

$1,700,000

Answer

$1,000,000

Answer

$1,200,000

Answer

$5,000,000

Question 3

Two days after a serious collision, a PI approaches the injured driver's spouse in a hospital waiting room and asks the spouse to sign authority for the PI to investigate the crash. The PI displays a valid license and offers a standard hourly contract. How should this conduct be classified?

Accepted Answer

It is prohibited direct solicitation of an injured person's family for authority to investigate the accident

Answer

It is permitted because the PI disclosed the license and proposed hourly billing rather than a contingent fee

Answer

It is permitted once the injured person is unavailable, provided the spouse receives a cancellation period

Answer

It is prohibited only when an attorney already represents the injured person or the family

Question 4

A PI has a signed agreement to investigate inventory theft at one warehouse for a $7,500 cap. During the assignment, the client telephones and asks the PI to add a second warehouse and double the cap. What must occur before the added work or charges begin?

Accepted Answer

Execute a written modification covering the new scope, fees, and dates

Answer

Proceed after recording the telephone authorization in the case log

Answer

Obtain client ratification when the final report is delivered

Answer

Perform one day of added work while preparing a revised invoice

Question 5

An existing client asks a PI firm to station armed personnel nightly at an empty warehouse solely to deter trespassers. The firm is also conducting an unrelated employee-theft investigation for that client. Which response keeps the firm within the lawful scope of PI practice?

Accepted Answer

Decline or refer the property-security assignment and continue only the lawful investigation

Answer

Accept the guarding assignment because any existing investigation makes protection incidental

Answer

Accept only if every assigned guard holds an active BSIS firearms permit

Answer

Terminate the investigation and report the client's request to law enforcement

Question 6

A witness agrees to a voluntary interview in a closed conference room and reasonably expects the conversation to remain among those present. The client-not the witness-authorizes the PI to record it. What is the lawful approach under California law?

Accepted Answer

Obtain consent from every participant before recording the confidential communication

Answer

Record without further consent because the client retained the investigator and owns the resulting work product

Answer

Record audio only, because separate consent is required only when video is captured

Answer

Begin recording secretly and ask the witness to ratify the recording after the interview

Question 7

An employer obtained an authorized employment consumer report and is considering rejecting the applicant because of information in that report. Before making the final decision, what must the employer provide?

Accepted Answer

A pre-adverse-action notice, a copy of the report, the FCRA Summary of Rights, and a meaningful opportunity to dispute

Answer

Only a final adverse-action notice after rejection, because the signed authorization already satisfied the applicant's notice rights

Answer

A sworn certification that every item in the consumer report has been independently verified

Answer

Notice to BSIS that the applicant did not satisfy the employer's background standard

Question 8

A California employer with 18 employees wants conviction history on the initial application for a position that is not subject to a statutory exception. When may the employer generally begin considering conviction history?

Accepted Answer

After making a conditional offer; any disqualification then requires an individualized assessment

Answer

After the first interview, if every applicant is asked the same question

Answer

Before interviewing, whenever the job involves client property and the same screening rule is applied to every applicant

Answer

After the applicant signs an authorization for a consumer report

Question 9

A client asks a PI to attach a GPS device to a vehicle used exclusively by the client's estranged spouse. Title and registration are solely in the spouse's name; the client is not a lessor or lessee, and there is no court order. Does the client's permission authorize the tracking?

Accepted Answer

No; absent other lawful authority, the consent exception requires the registered owner, lessor, or lessee

Answer

Yes, because a spouse has a legally sufficient shared interest in the other spouse's vehicle and movements

Answer

Yes, if the device records only location data and captures no audio or message content

Answer

No, but only because the investigator would monitor the vehicle while it travels on public roads

Question 10

A due-diligence file shows current assets of $600,000, current liabilities of $750,000, total assets of $2.0 million, and total liabilities of $1.1 million. The engagement flags a current ratio below 1.0 for further liquidity review. Using current assets divided by current liabilities, which conclusion is best?

Accepted Answer

The current ratio is 0.8, a liquidity warning that warrants cash-flow and liability follow-up

Answer

The current ratio is 1.25, demonstrating an adequate short-term asset cushion

Answer

The current ratio is 1.82 because total assets should be divided by total liabilities

Answer

The company is conclusively insolvent and the transaction must be abandoned without further investigation

Free CA-PI Practice Questions

Domain 1: Managing Private Investigation Business Operations 15% of exam

Question 1

Question 2

Question 3

Domain 2: Managing Private Investigations 55% of exam

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

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