A contractor collects $9,500 from a customer while unlicensed for work that required a license. Under §7031 disgorgement, what amount is the compensation-paid figure?
Correct Answer
D) $9,500.
The compensation-paid figure is the amount paid to the unlicensed contractor, which is $9,500 in this scenario.
Why This Is the Correct Answer
The compensation-paid figure is the amount paid to the unlicensed contractor, which is $9,500 in this scenario.
Why the Other Options Are Wrong
Option A: $950.
$950. is below the supported result for unlicensed compensation bar; it likely omits allowance, conversion, coverage, or final round-up.
Option B: $1,900.
$1,900. is below the supported result for unlicensed compensation bar; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $19,000.
$19,000. is above the supported result for unlicensed compensation bar; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Unlicensed cart for Practicing Unlicensed-Contractor: compensation-paid first, figure second, whole units last.
Reference Hint
Study anchor (closed-book): memorize Unlicensed compensation bar from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code Section 7031; know the rule or calculation trigger without relying on exam-room lookup.
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