For a repeat unlicensed-contracting offense, B&P §7028 uses the greater of 20 percent of the contract price or $5,000 as the minimum fine measure. If the contract price is $18,000, what is 20 percent?
Correct Answer
D) $3,600.
Twenty percent of $18,000 is $3,600.
Why This Is the Correct Answer
Twenty percent of $18,000 is $3,600.
Why the Other Options Are Wrong
Option A: $3,240.
$3,240. is below the supported result for unlicensed contracting penalties; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $3,500.
$3,500. is below the supported result for unlicensed contracting penalties; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $4,100.
$4,100. is above the supported result for unlicensed contracting penalties; it likely adds scope or money the rule does not allow.
Memory Technique
Unlicensed gate for Calculating Statutory: paper opens before money moves.
Reference Hint
Study anchor (closed-book): memorize Unlicensed contracting penalties from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code Section 7028; know the rule or calculation trigger without relying on exam-room lookup.
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