EstatePass
Law & BusinessLicensingmedium11% of exam part

A company wants to contract for a $12,000 deck repair while its CSLB license is inactive. What should happen before contracting?

Correct Answer

A) Restore the license to active status and maintain required bond and insurance filings before contracting.

Reactivate the appropriate license and satisfy the applicable bond and workers’ compensation filing requirements before contracting. Customer awareness, a different bank account and a promise of later activation do not supply active licensing authority. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Renew_License/General_Renewal_Information.aspx

Answer Options
A
Restore the license to active status and maintain required bond and insurance filings before contracting.
B
Proceed if the customer knows the license is inactive.
C
Contract through an employee's personal bank account.
D
Use a handwritten note saying the license will be active later, even though the license is not active when the contract is signed.

Why This Is the Correct Answer

Reactivate the appropriate license and satisfy the applicable bond and workers’ compensation filing requirements before contracting. Customer awareness, a different bank account and a promise of later activation do not supply active licensing authority. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Renew_License/General_Renewal_Information.aspx

Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →

Was this explanation helpful?

More Law & Business Questions

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your contractor license exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.