Using B&P §7028's repeat-offense comparison, a repeat offense involved a $42,000 contract. Which minimum fine comparison amount is greater: 20 percent of the contract price or $5,000?
Correct Answer
A) $8,400, because 20 percent of $42,000 exceeds $5,000.
Twenty percent of $42,000 is $8,400, which is greater than $5,000.
Why This Is the Correct Answer
Twenty percent of $42,000 is $8,400, which is greater than $5,000.
Why the Other Options Are Wrong
Option B: Use the fixed amount before comparing it with the percentage of the contract price.
Use the fixed amount before comparing it with the percentage of the contract price. skips the written authority, scope, price, notice, or release control needed for unlicensed contracting penalties.
Option C: $4,200, because 10 percent is used for repeat offenses.
$4,200, because 10 percent is used for repeat offenses. is below the supported result for unlicensed contracting penalties; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: Use the full contract price as the fine rather than the basis for the percentage comparison.
Use the full contract price as the fine rather than the basis for the percentage comparison. skips the written authority, scope, price, notice, or release control needed for unlicensed contracting penalties.
Memory Technique
Applying Unlicensed-Contracting contract math: approved scope is the ruler for unlicensed contracting.
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.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?