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.
A contractor must hold the appropriate active license status to contract for work requiring a license.
Why This Is the Correct Answer
A contractor must hold the appropriate active license status to contract for work requiring a license.
Why the Other Options Are Wrong
Option B: Proceed if the customer knows the license is inactive.
Proceed if the customer knows the license is inactive. skips the written authority, scope, price, notice, or release control needed for active license status.
Option C: Contract through an employee's personal bank account.
Contract through an employee's personal bank account. skips the written authority, scope, price, notice, or release control needed for active license status.
Option D: Use a handwritten note saying the license will be active later, even though the license is not active when the contract is signed.
Use a handwritten note saying the license will be active later, even though the license is not active when the contract is signed. skips the written authority, scope, price, notice, or release control needed for active license status.
Memory Technique
the controlling choice square for Checking Accepting: scope, authority, price, paper.
Reference Hint
Study anchor (closed-book): memorize Active license status from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code license status requirements; CSLB active license.; know the rule or calculation trigger without relying on exam-room lookup.
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