A homeowner hires an unlicensed contractor for a $15,000 bathroom renovation in Tennessee. The work is defective. What recourse does the homeowner have under TCA 62-6?
Correct Answer
B) Contract price plus repair costs
Tennessee law allows homeowners to recover both the contract price and repair costs when unlicensed contractors perform defective work requiring a license.
Why This Is the Correct Answer
TCA 62-6 is designed to protect consumers from unlicensed contractors. When defective work is performed by an unlicensed contractor on a project requiring a license, the homeowner may recover both the contract price paid and the cost to repair the defective work. This double recovery serves as a deterrent against unlicensed practice.
Why the Other Options Are Wrong
Option A: No recourse under state law
Tennessee law explicitly provides recourse against unlicensed contractors. 'No recourse' would leave consumers unprotected, which directly contradicts the consumer-protection intent of TCA 62-6.
Option C: Repair costs only
Limiting recovery to repair costs alone fails to make the homeowner whole — they also paid a contractor who was legally unqualified to take the job. TCA 62-6 allows the full contract price on top of repair costs.
Option D: Full contract price refund only
A full contract refund without repair costs would still leave the homeowner short, since they must pay a licensed contractor to fix the defective work. The statute provides both remedies.
Memory Technique
Think '2-for-1 penalty': the unlicensed contractor loses both the contract price (paid back) AND must cover the repair bill. The homeowner gets made whole twice over.
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