A repeat unlicensed-contracting comparison uses greater of 20 percent of contract price or $5,000. For $21,000, what controls?
Correct Answer
C) $5,000.
Twenty percent of $21,000 is $4,200, so $5,000 is greater.
Why This Is the Correct Answer
Twenty percent of $21,000 is $4,200, so $5,000 is greater.
Why the Other Options Are Wrong
Option A: $2,100.
$2,100. is below the supported result for unlicensed contracting penalties; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $4,200.
$4,200. is below the supported result for unlicensed contracting penalties; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $21,000.
$21,000. is above the supported result for unlicensed contracting penalties; it likely adds scope or money the rule does not allow.
Memory Technique
Percent before dollars; dollars before balance in Calculating Repeat.
Reference Hint
Study anchor (closed-book): memorize Unlicensed contracting penalties from CSLB licensing guidance; CSLB 2026 Law Book; California Business and. / Business and Professions Code Section 7028; know the rule or calculation trigger without relying on exam-room lookup.
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