A company offers to pay a licensed contractor monthly to let the company use the contractor's license number. What is the correct answer?
Correct Answer
B) Do not rent or lend the license number.
A contractor license cannot be rented, loaned, or used by a different unlicensed person or entity to contract.
Why This Is the Correct Answer
A contractor license cannot be rented, loaned, or used by a different unlicensed person or entity to contract.
Why the Other Options Are Wrong
Option A: That is acceptable if the monthly fee is high enough.
That is acceptable if the monthly fee is high enough. skips the written authority, scope, price, notice, or release control needed for license lending.
Option C: Rely on the license number shown on the proposal without confirming the licensed entity or qualifier relationship.
Rely on the license number shown on the proposal without confirming the licensed entity or qualifier relationship. skips the written authority, scope, price, notice, or release control needed for license lending.
Option D: It is acceptable if the company buys its own insurance.
It is acceptable if the company buys its own insurance. skips the written authority, scope, price, notice, or release control needed for license lending.
Memory Technique
License Lending square for Stopping License-Lending: scope, authority, price, paper.
Reference Hint
Study anchor (closed-book): memorize License lending from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code license misuse and aiding unlicensed practice; know the rule or calculation trigger without relying on exam-room lookup.
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