A homeowner discovers defective work 18 months after a Tennessee residential contractor completed a kitchen remodel. The contractor's license expired 6 months ago and was not renewed. What is the homeowner's recourse through the Tennessee Residential Contractor Recovery Fund?
Correct Answer
B) Full recovery up to $25,000
The Recovery Fund covers claims against licensed contractors even if the license has since expired, up to the maximum limit of $25,000 per claim.
Why This Is the Correct Answer
The Tennessee Residential Contractor Recovery Fund provides protection to homeowners even when a contractor's license has expired after the work was completed. As long as the contractor was properly licensed when the work was performed, claims can be filed against the Recovery Fund for up to $25,000 per claim. The fund exists specifically to protect consumers from defective work by licensed contractors, regardless of the contractor's current license status.
Why the Other Options Are Wrong
Option A: No recovery available - license expired
This is incorrect because license expiration after work completion does not disqualify claims from the Recovery Fund. The fund specifically protects consumers against licensed contractors who performed defective work, even if their license subsequently expires.
Option C: Recovery available only for material costs
This is wrong because the Recovery Fund covers all types of damages from defective work, not just material costs. Labor costs, consequential damages, and other losses are also covered up to the maximum limit.
Option D: Partial recovery up to $15,000
This amount is incorrect. The Tennessee Residential Contractor Recovery Fund provides coverage up to $25,000 per claim, not $15,000. The maximum recovery amount is specifically set at $25,000.
Memory Technique
Remember 'Tennessee Twenty-Five' - the Recovery Fund covers up to $25,000 even if the contractor's license expires after the work is done.
More tn-supplement Questions
Calculate the Tennessee workers' compensation premium for a roofing contractor with a $180,000 annual payroll and a rate of $28.50 per $100 of payroll:
How many hours of continuing education are required for Tennessee contractor license renewal?
Calculate the workers' compensation experience modification factor for a contractor with $85,000 in expected losses and $68,000 in actual losses:
Under Tennessee lien law, what is the maximum time limit to enforce a mechanics lien after it has been filed?
Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Under Tennessee building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
Under Tennessee building codes, what is the minimum ceiling height required for habitable rooms in residential construction?
A Tennessee contractor has 8 employees working on a residential project. The total weekly payroll is $6,400. If the workers' compensation rate for residential construction is $8.50 per $100 of payroll, what is the weekly workers' compensation premium?
A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
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