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A general contractor subcontracts plumbing work to an unlicensed individual on a $75,000 project. What is the contractor's potential liability under the Business and Professions Code?

Correct Answer

B) Joint and several liability for all damages plus penalties

Under B&P Code Section 7118, contractors are jointly and severally liable when they use unlicensed subcontractors, including full liability for damages and potential penalties.

Answer Options
A
Administrative fine not exceeding $1,000
B
Joint and several liability for all damages plus penalties
C
Warning letter only for first offense
D
50% liability for subcontractor's work only

Why This Is the Correct Answer

Under B&P Code Section 7118, contractors are jointly and severally liable when they use unlicensed subcontractors, including full liability for damages and potential penalties.

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