A prime contractor plans to use an unlicensed subcontractor for cabinet installation work requiring a license. What should the prime do?
Correct Answer
A) Use a properly licensed subcontractor.
Work requiring a contractor license should be performed by the properly licensed contractor or subcontractor.
Why This Is the Correct Answer
Work requiring a contractor license should be performed by the properly licensed contractor or subcontractor.
Why the Other Options Are Wrong
Option B: Let the unlicensed subcontractor borrow the prime's license.
Let the unlicensed subcontractor borrow the prime's license. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for subcontractor licensing.
Option C: Have the customer sign the subcontract instead.
Have the customer sign the subcontract instead. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for subcontractor licensing.
Option D: Rename the work as delivery labor.
Rename the work as delivery labor. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for subcontractor licensing.
Memory Technique
Approving Subcontract envelope: right person, right date, right contents.
Reference Hint
Study anchor (closed-book): memorize Subcontractor licensing from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code subcontractor licensing and discipline provisions; 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?
