A general contractor subcontracts plumbing work valued at $8,500 to an unlicensed individual. What is the potential penalty under Arizona law?
Correct Answer
C) Class 1 misdemeanor charge
Contracting with unlicensed individuals for work requiring a license is a Class 1 misdemeanor under A.R.S. 32-1151.
Why This Is the Correct Answer
Under A.R.S. 32-1151, contracting with or hiring an unlicensed person to perform work that requires a license is a Class 1 misdemeanor in Arizona — the most serious misdemeanor classification, carrying potential jail time and fines. This applies to both the unlicensed individual and the general contractor who knowingly subcontracted to them.
Why the Other Options Are Wrong
Option A: $500 fine
A $500 fine alone does not reflect the severity of the offense under Arizona law. Unlicensed contracting is a criminal matter, not merely a civil infraction subject to a nominal monetary penalty.
Option B: License suspension only
License suspension only is insufficient as a penalty description; it also mischaracterizes the nature of the offense. The unlicensed subcontractor has no license to suspend, and the statute imposes criminal liability, not merely an administrative sanction.
Option D: Written warning
A written warning is not a legal consequence under A.R.S. 32-1151. Arizona takes unlicensed contracting seriously enough to impose criminal charges, not merely administrative notices.
More Arizona Questions
What is the current minimum bond amount required for a residential contractor license in Arizona?
A contractor files a preliminary 20-day notice on January 15th for work that began on January 10th. The preliminary notice was delivered to the owner on January 18th. Under A.R.S. 33-981, is this notice valid for lien purposes?
Under Arizona law, which entity has the authority to investigate complaints against licensed contractors and impose disciplinary actions?
Under Arizona ROC regulations, what is the maximum amount a residential contractor can collect as a down payment before beginning work?
A contractor's license expires on June 30th. The contractor submits a renewal application on July 15th. Under Arizona ROC regulations, what penalty applies?
A contractor's workers compensation policy lapses for 15 days due to non-payment of premiums. Three employees are injured during this period, resulting in $85,000 in medical costs. Under Arizona law, what is the contractor's potential liability?
According to A.R.S. Title 32, which of the following can serve as a qualifying party for multiple contracting businesses?
A residential contractor enters into a contract for $15,000 to remodel a kitchen. Under Arizona law, what is the required down payment limitation?
A residential contractor completed $45,000 in work and materials. The homeowner paid $35,000 but disputes the remaining $10,000. How long does the contractor have to file a mechanics lien after recording the notice of completion?
A contractor has 8 employees working on various projects. The annual workers' compensation premium is $24,000. If the contractor fails to maintain coverage, what is the maximum daily penalty exposure?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A residential contractor's license expires on June 30th. The contractor submits a renewal application on July 15th. What is the consequence under Arizona law?
Next Question
A residential contractor completes a $35,000 kitchen remodel. The homeowner pays in full but later discovers defective work. Under Arizona law, what is the contractor's warranty period for this type of work?