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Law & BusinessLicensingmedium11% of exam part

A customer paid $7,500 to an unlicensed person for work requiring a license. Under B&P §7031's disgorgement concept, what amount may the customer seek to recover?

Correct Answer

D) $7,500.

B&P §7031 allows recovery of compensation paid to an unlicensed contractor for work requiring a license.

Answer Options
A
$6,500.
B
$8,500.
C
$10,000.
D
$7,500.

Why This Is the Correct Answer

B&P §7031 allows recovery of compensation paid to an unlicensed contractor for work requiring a license.

Why the Other Options Are Wrong

Option A: $6,500.

$6,500. is below the supported result for unlicensed compensation bar; it likely omits allowance, conversion, coverage, or final round-up.

Option B: $8,500.

$8,500. is above the supported result for unlicensed compensation bar; it likely double-counts allowance, uses the wrong unit, or rounds too early.

Option C: $10,000.

$10,000. is above the supported result for unlicensed compensation bar; it likely double-counts allowance, uses the wrong unit, or rounds too early.

Memory Technique

Measure to allows, adjust for recovery, then let Reviewing Licensing set the finish line.

Reference Hint

Study anchor (closed-book): memorize Unlicensed compensation bar from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code Section 7031; know the rule or calculation trigger without relying on exam-room lookup.

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