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Law & BusinessLicensingmedium11% of exam part

An unlicensed worker advertises online as 'licensed-quality contractor services' for $850 jobs. Which statement best fits B&P §7027.2 and §7048?

Correct Answer

A) The ad is a problem because unlicensed persons must not advertise as contractors, and any allowed under-threshold ad must state they are not licensed.

Unlicensed advertising is limited; for under-threshold work the ad must state the person is not licensed, and the person cannot hold out as a licensed contractor.

Answer Options
A
The ad is a problem because unlicensed persons must not advertise as contractors, and any allowed under-threshold ad must state they are not licensed.
B
Use the trade name in the ad but omit the active CSLB license number or status disclosure.
C
The ad is acceptable if the customer does not ask for the license number.
D
Rely on the $850 price while leaving out the required unlicensed disclosure.

Why This Is the Correct Answer

Unlicensed advertising is limited; for under-threshold work the ad must state the person is not licensed, and the person cannot hold out as a licensed contractor.

Why the Other Options Are Wrong

Option B: Use the trade name in the ad but omit the active CSLB license number or status disclosure.

Use the trade name in the ad but omit the active CSLB license number or status disclosure. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for advertising by unlicensed persons.

Option C: The ad is acceptable if the customer does not ask for the license number.

The ad is acceptable if the customer does not ask for the license number. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for advertising by unlicensed persons.

Option D: Rely on the $850 price while leaving out the required unlicensed disclosure.

Rely on the $850 price while leaving out the required unlicensed disclosure. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for advertising by unlicensed persons.

Memory Technique

Advertising By clock for Checking Online: party, date, proof, then rights.

Reference Hint

Study anchor (closed-book): memorize Advertising by unlicensed persons from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code Section 7027.2; Section 7048; know the rule or calculation trigger without relying on exam-room lookup.

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