A homeowner disputes $12,000 in charges from a licensed Michigan contractor. The contractor's surety bond is $25,000. What is the maximum amount the homeowner can claim against the bond for this single project?
Correct Answer
B) $12,000
Bond claims are limited to actual damages. The homeowner can claim up to the disputed amount of $12,000, not exceeding actual damages incurred.
Why This Is the Correct Answer
Bond claims are limited to actual damages. The homeowner can claim up to the disputed amount of $12,000, not exceeding actual damages incurred.
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A Michigan contractor operates as a sole proprietorship and wants to convert to an LLC. The business has $150,000 in assets and $75,000 in liabilities. What is the owner's equity that will transfer to the new LLC?
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Under Michigan law, within how many days must a contractor provide preliminary notice to preserve lien rights on a commercial project?