A website lists the contractor as licensed, bonded, and insured, but the license lookup shows suspended status. What should be corrected?
Correct Answer
B) Correct the misleading licensing claim and review the bonding and insurance wording.
Correct the misleading licensing claim: suspended status does not authorize active contracting. The other advertising claims also need review: section 7027.4 requires the insurance type to be identified and prohibits advertising required license or disciplinary bonding as “bonded”; section 7071.13 addresses required bonds in public representations. Merely restoring the license would not cure all wording in the quoted advertisement. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf
Why This Is the Correct Answer
Correct the misleading licensing claim: suspended status does not authorize active contracting. The other advertising claims also need review: section 7027.4 requires the insurance type to be identified and prohibits advertising required license or disciplinary bonding as “bonded”; section 7071.13 addresses required bonds in public representations. Merely restoring the license would not cure all wording in the quoted advertisement. Source: https://www.cslb.ca.gov/Resources/GuidesAndPublications/2026/2026_CSLB_Law_Book.pdf
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