A contractor receives a stop payment notice on a project. Under Michigan lien law, how many days does the property owner have to respond with proof of payment or deposit?
Correct Answer
C) 10 days
Michigan law requires property owners to respond to stop payment notices within 10 days with proof of payment or deposit.
Why This Is the Correct Answer
Michigan's Construction Lien Act requires a property owner who receives a stop payment notice to respond within 10 days by providing proof that the disputed amount has been paid or by depositing the disputed amount. The 10-day window is a strict statutory deadline.
Why the Other Options Are Wrong
Option A: 30 days
30 days is a common deadline in Michigan lien law (e.g., for certain notice requirements), but it is not the owner's response window for a stop payment notice. Candidates familiar with 30-day periods elsewhere in lien law may default to this answer.
Option B: 15 days
15 days is not a recognized statutory period for stop payment notice responses under Michigan's Construction Lien Act.
Option D: 20 days
20 days does not appear as a statutory threshold for this specific obligation. It may be confused with other procedural deadlines in Michigan law.
Memory Technique
Stop = 10. Think of a stop sign: it has 8 sides, but for Michigan lien law you stop and respond in 10 days. Alternatively: 'Ten days to stop the lien clock' β the owner has just 10 days to prove payment or put up a deposit.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
People Also Study
Business & Financial Management
120 questions Β· 70% to pass
Contract Administration
60 questions Β· 70% to pass
Project Management
60 questions Β· 70% to pass
Related Study Resources
Previous Question
A contractor purchases commercial auto insurance with $500,000 coverage. A work truck causes $750,000 in damages. What is the contractor's personal exposure?
Next Question
A Michigan contractor has $85,000 in labor costs and $45,000 in material costs for a project. If the workers compensation rate is 8.5% of labor costs, what is the total workers compensation premium?
