A contractor fails to obtain proper permits for a residential addition in Michigan. The homeowner discovers this after completion and demands remediation. Under Michigan Act 299, what potential consequence does the contractor face?
Correct Answer
B) License suspension or revocation
Failure to obtain required permits can result in license suspension or revocation under Michigan Act 299, as it constitutes unprofessional conduct.
Why This Is the Correct Answer
Failing to obtain required permits is a serious violation under Michigan Act 299 (Occupational Code). It constitutes unprofessional conduct and can result in license suspension or revocation. LARA has broad authority to discipline licensees who bypass permit requirements, as permits are a fundamental consumer protection mechanism.
Why the Other Options Are Wrong
Option A: Mandatory additional education hours
Mandatory additional education hours are not a primary disciplinary consequence for permit violations. While continuing education is part of license maintenance, it is not a standalone penalty imposed for specific violations like unpermitted work.
Option C: Warning letter only
A warning letter is insufficient for a permit violation that has already resulted in homeowner harm. Act 299 authorizes more serious disciplinary action. Warnings may be issued for minor infractions, but unpermitted construction — especially when the homeowner is demanding remediation — rises to the level warranting formal discipline.
Option D: Monetary fine up to $500
A $500 fine is grossly understated for this type of violation. While fines can be part of the disciplinary process, the more significant consequence is the threat to the contractor's license itself. Limiting the consequence to a small fine would not reflect the seriousness of bypassing permit requirements.
Memory Technique
No permit = No license (potentially). The consequence scales with the severity of harm to the homeowner. When a homeowner is directly harmed by unpermitted work, regulators respond with the most serious available tool: suspension or revocation.
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