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Law & BusinessLicensingmedium11% of exam part

Assume a second unlicensed-contracting conviction governed by B&P section 7028(c), with no subdivision (d) or (e) application. The contract price and aggregate payments to or at the direction of the unlicensed person are both $42,000. Which is greatest: 20% of the contract price, 20% of those payments, or $5,000?

Correct Answer

A) $8,400, because 20 percent of $42,000 exceeds $5,000.

For the stated section 7028(c) comparison, both the contract price and aggregate payments are $42,000. Their 20% amounts are each $8,400; compare those with $5,000 and select $8,400. Using 10%, ignoring the percentage, or taking the full contract price does not perform that comparison. This does not calculate imprisonment, restitution or penalties under other provisions. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf

Answer Options
A
$8,400, because 20 percent of $42,000 exceeds $5,000.
B
Use the fixed amount before comparing it with the percentage of the contract price.
C
$4,200, because 10 percent is used for repeat offenses.
D
Use the full contract price as the fine rather than the basis for the percentage comparison.

Why This Is the Correct Answer

For the stated section 7028(c) comparison, both the contract price and aggregate payments are $42,000. Their 20% amounts are each $8,400; compare those with $5,000 and select $8,400. Using 10%, ignoring the percentage, or taking the full contract price does not perform that comparison. This does not calculate imprisonment, restitution or penalties under other provisions. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf

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