After a hearing, a Director suspends an LEC's licence and the suspension has now taken effect. Under O. Reg. 570/05 s. 24, what must the LEC do with its licence?

Return it within five business days by a delivery that gives proof of delivery

Keep it posted, marked as suspended, until it is reinstated

Return it within 15 days by any means, with a covering letter to the Director

Destroy it, then notify the Director that it was destroyed within five business days

After a hearing, a Director refuses to renew an ME's licence. Under the Electricity Act, 1998 s. 113.10, to which body may the ME appeal the decision?

The Divisional Court, which can order the steps it considers proper

The Superior Court of Justice, which hears compliance-order applications

The Ontario Labour Relations Board, which reviews trade-certificate penalties

The Minister, who has approved the fees that ESA charges for licences

At her kitchen table a homeowner signs an LEC's written agreement for a $46 diagnostic service call, the whole amount payable, and receives her copy. Three days later she wants to cancel without giving a reason. Under Consumer Protection Act, 2002 s. 41 and O. Reg. 17/05 s. 34, may she?

No; the direct-agreement rules apply only where the total exceeds $50.

Yes; the 10-day right runs from when she received her copy.

Yes; any agreement concluded in her home carries the 10-day right.

No; only door-to-door sales of goods such as water heaters carry that right.

The LEC's office administrator, who works only at its head office, signed a valid written agreement to work up to 54 hours a week. She now gives the LEC written notice that she revokes it. Under Employment Standards Act, 2000 s. 17, when does the revocation take effect?

Two weeks after she gives the written notice

Immediately, on the day she gives the notice

After reasonable notice, as the LEC decides

Only when the LEC agrees in writing to end it

Two journeypersons at an LEC keep mocking a co-worker's turban, which he wears for his faith. Under Human Rights Code s. 5 (2), whose conduct can be harassment in the workplace because of creed?

The employer, its agent or another employee

Only a person able to grant or deny him a benefit

The employer or its agent, but not a co-worker

Only a supervisor who directs how he does his work

An LEC receives a construction union's notice that its certification application is to be dealt with on membership cards under Labour Relations Act, 1995 s. 128.1. When must the LEC give the Board the names of the employees in the proposed bargaining unit?

Within two days, not counting Saturdays, Sundays or holidays

Within ten days after it receives the Board's notice of filing

Within five days, not counting Saturdays, Sundays or holidays

Within two calendar days after the union filed the application

An LEC's 309A apprentice has had his registered training agreement suspended, and he holds no certificate of qualification. The LEC wants him to keep wiring on its jobs until the suspension is lifted. Under the Building Opportunities in the Skilled Trades Act, 2021 ss. 6 and 7, may he?

No: his training agreement must not be suspended

No, unless a journeyperson directly supervises all his work

Yes, until the training agreement is formally revoked

Yes, as long as the LEC's apprentice ratio is still met

An LEC's foreman directs a crew installing luminaires above a public mall corridor, and a shopper below is struck by a falling tool. Under Criminal Code s. 217.1, whom does the foreman's duty protect?

The crew and any other person harmed by the work

All workers on the project, but not members of the public

The crew only, since the duty is owed to directed workers

Only persons the LEC has contracted with, such as the owner

Master Electrician Practice Questions: Section 3 Business Admin

Ten free practice questions on business administration law: Section 3 of the three sections of Ontario's Master Electrician licensing exam, which ESA, the Electrical Safety Authority, runs. They are original questions written by TicketPrep from the OESC rule numbers and the Ontario statutes, not questions from the exam. Each has four options and one correct answer, as every question in our bank does. Answer each one before opening the explanation. No account, no email.

01The questions

Recall · Objective 3.1

After a hearing, a Director suspends an LEC's licence and the suspension has now taken effect. Under O. Reg. 570/05 s. 24, what must the LEC do with its licence?
1. Keep it posted, marked as suspended, until it is reinstated
2. Return it within five business days by a delivery that gives proof of delivery
3. Return it within 15 days by any means, with a covering letter to the Director
4. Destroy it, then notify the Director that it was destroyed within five business days
Show the answer

B. Correct. O. Reg. 570/05 s. 24 requires an LEC to return its licence to the Director within five business days of its suspension, revocation or expiry, using a form of delivery that provides proof of delivery. Section 30 sets the same rule for an ME licence.

Why not the others

A. Posting under s. 17 applies to a licence in force. Once suspended, s. 24 requires the licence to go back to the Director, not to stay on the wall.

C. Fifteen days is the hearing-request period under the Electricity Act. Section 24 sets five business days and a delivery method that proves delivery.

D. Destroying the licence does not meet s. 24, which requires its return to the Director by a method that proves delivery.

Source: ESA exam outline, Section 3: Business Administration; O. Reg. 570/05
Recall · Objective 3.1

After a hearing, a Director refuses to renew an ME's licence. Under the Electricity Act, 1998 s. 113.10, to which body may the ME appeal the decision?
1. The Superior Court of Justice, which hears compliance-order applications
2. The Ontario Labour Relations Board, which reviews trade-certificate penalties
3. The Divisional Court, which can order the steps it considers proper
4. The Minister, who has approved the fees that ESA charges for licences
Show the answer

C. Correct. Section 113.10 (1) gives an appeal to the Divisional Court when, after a hearing, a Director refuses, refuses to renew, suspends, revokes or imposes conditions, and the court may order the Director to take the action it considers proper (s. 113.10 (4)). The notice of appeal is filed within 30 days after receiving notice of the decision, and the Director is a party (s. 113.10 (2), (3)).

Why not the others

A. The Superior Court of Justice hears a Director's application for a compliance order (s. 113.12). Appeals from a Director's decision after a hearing go to the Divisional Court.

B. The Board reviews notices of contravention under the skilled-trades legislation. Electricity Act licensing decisions go to the Divisional Court under s. 113.10.

D. The Minister approves ESA's fee-setting process (s. 113.17) but hears no licence appeals. Section 113.10 sends them to the Divisional Court.

Source: ESA exam outline, Section 3: Business Administration; Electricity Act, 1998
Calculation · Objective 3.2

An LEC's contract for a manufacturer's plant expansion has a price of $1 800 000, and the new production area is already in use. Under Construction Act s. 2 (1), the contract is substantially performed if the work left to complete or correct can be done for no more than
1. $30 000
2. $36 000
3. $46 000
4. $54 000
Show the answer

C. Correct. Section 2 (1) (b) uses a tiered cost of completion: 3 % of the first $1 000 000 of the contract price, 2 % of the next $1 000 000 and 1 % of any balance. Here 3 % x $1 000 000 = $30 000 plus 2 % x $800 000 = $16 000, total $46 000; the improvement must also be ready for use or in use (s. 2 (1) (a)).

Why not the others

A. This applies 3 % to the first $1 000 000 and stops there. Section 2 (1) (b) also adds 2 % of the next $1 000 000: $30 000 + 2 % x $800 000 ($16 000) = $46 000.

B. This applies the 2 % rate to the whole $1 800 000. The rates in s. 2 (1) (b) are tiered: 3 % of the first $1 000 000 ($30 000) plus 2 % of the remaining $800 000 ($16 000) = $46 000.

D. This applies 3 % to the whole price. Only the first $1 000 000 carries 3 %; the next $800 000 carries 2 % (s. 2 (1) (b)), giving $30 000 + $16 000 = $46 000.

Source: ESA exam outline, Section 3: Business Administration; Construction Act
Procedural · Objective 3.3

At her kitchen table a homeowner signs an LEC's written agreement for a $46 diagnostic service call, the whole amount payable, and receives her copy. Three days later she wants to cancel without giving a reason. Under Consumer Protection Act, 2002 s. 41 and O. Reg. 17/05 s. 34, may she?
1. Yes; the 10-day right runs from when she received her copy.
2. Yes; any agreement concluded in her home carries the 10-day right.
3. No; the direct-agreement rules apply only where the total exceeds $50.
4. No; only door-to-door sales of goods such as water heaters carry that right.
Show the answer

C. Correct. Sections 42 and 43 apply to a direct agreement only if the consumer's total potential payment obligation, excluding the cost of borrowing, exceeds the prescribed amount (s. 41 (1)), which O. Reg. 17/05 s. 34 sets at $50. A $46 agreement is below it, so the 10-day cooling-off does not apply.

Why not the others

A. That is how the 10-day period is counted when s. 43 (1) applies. It does not apply here because the $46 total does not exceed the $50 threshold (O. Reg. 17/05 s. 34).

B. An agreement concluded at the consumer's home is a direct agreement (s. 20 (1)), but the cooling-off in s. 43 applies only when the total payable exceeds $50 (s. 41 (1); O. Reg. 17/05 s. 34).

D. The water-heater rule in s. 43.1 is a separate ban on uninvited door-to-door sales of prescribed goods. The 10-day cooling-off covers direct agreements generally, but only above $50.

Source: ESA exam outline, Section 3: Business Administration; O. Reg. 17/05; Consumer Protection Act, 2002
Calculation · Objective 3.9

An LEC's estimator prices a strip-plaza lighting retrofit at the company's standard 40 % markup on total job cost (labour, materials and overhead). The owner tracks every job by gross margin on the selling price. The gross margin on this job is
1. 28.6 %
2. 40.0 %
3. 66.7 %
4. 71.4 %
Show the answer

A. Correct. Margin = markup / (1 + markup) = 0.40 / 1.40 = 28.6 % of the selling price. For example, $1 000 cost x 1.40 = $1 400 price; profit $400 / $1 400 = 28.6 %.

Why not the others

B. This reads the markup as the margin. Markup is profit over cost, margin is profit over price; a 40 % markup gives $400 / $1 400 = 28.6 %.

C. This converts the wrong way, 0.40 / 0.60, which is the markup needed for a 40 % margin. A 40 % markup gives a margin of 0.40 / 1.40 = 28.6 %.

D. 71.4 % (1 / 1.40) is cost as a share of the selling price, not profit. Margin is the remainder: 100 % - 71.4 % = 28.6 %.

Source: ESA exam outline, Section 3: Business Administration; O. Reg. 570/05
Recall · Objective 3.4

The LEC's office administrator, who works only at its head office, signed a valid written agreement to work up to 54 hours a week. She now gives the LEC written notice that she revokes it. Under Employment Standards Act, 2000 s. 17, when does the revocation take effect?
1. Immediately, on the day she gives the notice
2. Two weeks after she gives the written notice
3. After reasonable notice, as the LEC decides
4. Only when the LEC agrees in writing to end it
Show the answer

B. Correct. Section 17 (6) lets an employee revoke an agreement to exceed the daily or weekly hours limit two weeks after giving the employer written notice. From then on the 48-hour weekly limit in s. 17 (1) (b) applies to her again.

Why not the others

A. The revocation is not immediate: s. 17 (6) builds in a two-week delay after the employee's written notice, which gives the LEC time to reschedule.

C. Reasonable notice is the test when the employer revokes the agreement (s. 17 (7)). An employee's revocation takes effect two weeks after her written notice under s. 17 (6).

D. No consent is needed: s. 17 (6) gives the employee a right to revoke two weeks after written notice. A mutual-consent rule applies to averaging agreements (s. 22 (6)), not to excess-hours agreements.

Source: ESA exam outline, Section 3: Business Administration; Employment Standards Act, 2000
Recall · Objective 3.5

Two journeypersons at an LEC keep mocking a co-worker's turban, which he wears for his faith. Under Human Rights Code s. 5 (2), whose conduct can be harassment in the workplace because of creed?
1. Only a person able to grant or deny him a benefit
2. The employer or its agent, but not a co-worker
3. The employer, its agent or another employee
4. Only a supervisor who directs how he does his work
Show the answer

C. Correct. Section 5 (2) gives every employee freedom from harassment in the workplace by the employer, the employer's agent or another employee, on grounds that include creed. Harassment is a course of vexatious comment or conduct known, or that ought reasonably to be known, to be unwelcome (s. 10 (1)), so the co-workers' repeated mockery is covered.

Why not the others

A. A person able to grant or deny a benefit is the s. 7 (3) test for sexual solicitation, not the s. 5 (2) harassment rule, which reaches the employer, its agent and any other employee.

B. Co-workers are expressly included: s. 5 (2) covers harassment by another employee as well as by the employer or its agent.

D. Section 5 (2) is not limited to supervisors; it names the employer, its agent and another employee, so peers can harass under the Code.

Source: ESA exam outline, Section 3: Business Administration; Human Rights Code
Recall · Objective 3.6

An LEC receives a construction union's notice that its certification application is to be dealt with on membership cards under Labour Relations Act, 1995 s. 128.1. When must the LEC give the Board the names of the employees in the proposed bargaining unit?
1. Within ten days after it receives the Board's notice of filing
2. Within five days, not counting Saturdays, Sundays or holidays
3. Within two calendar days after the union filed the application
4. Within two days, not counting Saturdays, Sundays or holidays
Show the answer

D. Correct. Section 128.1 (3) gives the employer two days, excluding Saturdays, Sundays and holidays, after receiving notice of the union's election to give the Board the names of the employees in the proposed unit (and in any unit the employer proposes) as of the filing date.

Why not the others

A. No ten-day period applies; s. 128.1 (3) requires the names within two days, excluding Saturdays, Sundays and holidays, after the LEC receives the notice.

B. Five days excluding weekends and holidays is the time for holding a directed representation vote (s. 128.1 (14) (a)). The employer's list of names is due in two such days (s. 128.1 (3)).

C. The two days run from the employer's receipt of the notice, not from filing, and Saturdays, Sundays and holidays are not counted (s. 128.1 (3)).

Source: ESA exam outline, Section 3: Business Administration; Labour Relations Act, 1995
Procedural · Objective 3.7

An LEC's 309A apprentice has had his registered training agreement suspended, and he holds no certificate of qualification. The LEC wants him to keep wiring on its jobs until the suspension is lifted. Under the Building Opportunities in the Skilled Trades Act, 2021 ss. 6 and 7, may he?
1. No, unless a journeyperson directly supervises all his work
2. No: his training agreement must not be suspended
3. Yes, until the training agreement is formally revoked
4. Yes, as long as the LEC's apprentice ratio is still met
Show the answer

B. Correct. Section 6 (a) lets an apprentice practise a compulsory trade only while working under a registered training agreement that is not suspended, and s. 7 (a) bars the LEC from employing him to do the work on any other basis. With no certificate, he has no other route under s. 6 (b).

Why not the others

A. Supervision does not cure a suspension: s. 6 (a) requires an unsuspended registered training agreement, and the LEC breaches s. 7 by employing him without one.

C. The Act draws the line at suspension, not revocation: ss. 6 (a) and 7 (a) require a training agreement that is not suspended.

D. The ratio in s. 8 limits how many apprentices may work per journeyperson; it does not let an apprentice with a suspended agreement practise the trade (s. 6 (a)).

Source: ESA exam outline, Section 3: Business Administration; Building Opportunities in the Skilled Trades Act, 2021
Recall · Objective 3.8

An LEC's foreman directs a crew installing luminaires above a public mall corridor, and a shopper below is struck by a falling tool. Under Criminal Code s. 217.1, whom does the foreman's duty protect?
1. All workers on the project, but not members of the public
2. The crew only, since the duty is owed to directed workers
3. The crew and any other person harmed by the work
4. Only persons the LEC has contracted with, such as the owner
Show the answer

C. Correct. Section 217.1 requires the person directing the work to take reasonable steps to prevent bodily harm to the worker or any other person arising from the work, so the duty extends to the shopper below.

Why not the others

A. Section 217.1 is not confined to workers; any other person harmed by the work, including a member of the public, is within it.

B. The duty is not limited to the directed workers: s. 217.1 covers bodily harm to that person or any other person arising from the work.

D. Contract has nothing to do with it: s. 217.1 protects the directed worker and any other person who may be harmed by the work.

Source: ESA exam outline, Section 3: Business Administration; Criminal Code

02Answer key

Question	Answer	Our objective
Q1	B	Objective 3.1
Q2	C	Objective 3.1
Q3	C	Objective 3.2
Q4	C	Objective 3.3
Q5	A	Objective 3.9
Q6	B	Objective 3.4
Q7	C	Objective 3.5
Q8	D	Objective 3.6
Q9	B	Objective 3.7
Q10	C	Objective 3.8

Want the rest of Section 3?

The full TicketPrep Master Electrician bank has 172 questions on business administration law and 550 across all three sections, covering every one of our 22 objectives, with every option explained the way the ten above are. Its timed 80-question mock exams score you on both of ESA's rules: 70 per cent overall and at least 60 per cent in each section. Try five more free in the quiz, no account, or get the whole bank for $69 one-time. All-Access ($119) covers the ME exam with all eighteen Red Seal trades, the Ontario G3 and 4th Class Power Engineering 4A and 4B.

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03What Section 3 covers

Section 3 of the ESA Master Electrician exam is Business Administration. ESA's Information Package lists the Electricity Act and O. Reg. 570/05, business management, the Consumer Protection Act, the Construction Act (ESA still uses its old name, the Construction Lien Act), the Human Rights Code, the Labour Relations Act, the Employment Standards Act and O. Reg. 12/23 on administrative penalties, as they relate to electrical contracting. Our questions also cover the Building Opportunities in the Skilled Trades Act, 2021 and the Criminal Code duty of anyone who directs work, both in ESA's Relevant Legislation book.

ESA publishes the three sections and their share of the exam, 33 per cent each, and the laws each one covers, but not how many questions each section has or which topics inside a section carry the most. The nine objectives below are TicketPrep's own, built from those lists, and the right-hand column is how many questions our bank holds on each objective, Standard and Advanced together, not a count from the exam.

Our objective	In our bank
Objective 3.1 Electrical safety licensing: ESA's powers, LEC and DME duties, notices and administrative penalties	52
Objective 3.2 Construction Act: prompt payment, adjudication, trusts, holdback and lien timelines on electrical contracts	30
Objective 3.3 Consumer Protection Act, 2002: estimates, direct agreements, cooling-off, cancellation and refunds for residential electrical work	24
Objective 3.4 Employment Standards Act, 2000 for an electrical contractor's employees, including the construction-employee rules	19
Objective 3.5 Human Rights Code in employment: grounds, harassment, accommodation to undue hardship and reprisal	13
Objective 3.6 Labour Relations Act, 1995 with the construction-industry provisions	12
Objective 3.7 Building Opportunities in the Skilled Trades Act, 2021: compulsory electrical trades, certificates, apprentices and enforcement	10
Objective 3.8 Bill C-45: the Criminal Code duty of persons directing work and organizational liability	5
Objective 3.9 Business management for an electrical contractor: pricing, cash flow, HST and business names	7

04What the questions turn on

The licence rules behind the exam itself

O. Reg. 570/05, section 11, licenses a master electrician who has three years of experience under a certificate of qualification, for example as a 309A, 309C or 442A electrician, and who passed the master electrician exam in the 12 months before applying; an older pass has to be repeated. Section 4 makes the LEC ensure that all electrical work done on its behalf follows every applicable law, the employment standards and consumer protection laws included, not only the Code.

Prompt payment, holdback and adjudication

Under the Construction Act an owner that disputes part of a proper invoice must give a notice of non-payment within 14 days of receiving it, and still pays the undisputed part on time (section 6.4). Every payer holds back 10 per cent of the value of the work supplied (section 22). When an adjudicator's determination is not paid when due, the contractor may suspend work until it is paid with interest and the costs of the suspension (section 13.19).

An estimate to a homeowner has a 10 per cent ceiling

Under the Consumer Protection Act, 2002, section 10, an LEC may not charge more than 10 per cent above the estimate in a consumer agreement. Go past that and the homeowner can require the work at the estimated price. Extra or different work the homeowner asks for is handled by agreeing to amend the estimate, which keeps the ceiling measured against the right figure.

Employees, compulsory trades and the price of a job

Construction employees are exempt from some hours-of-work rules in the Employment Standards Act, 2000, but not from overtime after 44 hours a week or from eating periods. Under the Building Opportunities in the Skilled Trades Act, 2021, when an uncertified worker does compulsory electrical work, both the worker and the contractor who assigned it contravene the Act. And a markup is a percentage of cost, not of the price, so a 20 per cent markup is a smaller margin.

05The other sections

The Master Electrician exam has three sections, and you need at least 60 per cent in each one as well as 70 per cent overall to pass. Each section has its own page of free questions:

The Master Electrician practice test page describes the full question bank. How these questions are written and checked: how our questions are made. Found a mistake? Tell us and we will fix it. TicketPrep is not affiliated with ESA or CSA Group, and no OESC text is reproduced here: the questions cite Rule numbers and explain the requirement in their own words.