A customer paid $7,500 for work requiring a contractor’s license to a person who has never been licensed in California. Assume no applicable exception. Under B&P section 7031(b), what compensation-paid amount may the customer seek to recover?
Correct Answer
D) $7,500.
Section 7031(b) permits an action to recover compensation paid, subject to section 7031(e). Here the person has never been licensed and the question excludes applicable exceptions. The paid compensation is $7,500, so that is the amount sought under the stated concept; it is not automatically increased to $8,500 or $10,000, or reduced to $6,500. Recovery is a legal claim, not an automatic payment. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf
Why This Is the Correct Answer
Section 7031(b) permits an action to recover compensation paid, subject to section 7031(e). Here the person has never been licensed and the question excludes applicable exceptions. The paid compensation is $7,500, so that is the amount sought under the stated concept; it is not automatically increased to $8,500 or $10,000, or reduced to $6,500. Recovery is a legal claim, not an automatic payment. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf
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