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?
Correct Answer
B) No legal recourse for payment
Tennessee law prohibits unlicensed contractors from recovering payment through legal action for work requiring a license.
Why This Is the Correct Answer
Under Tennessee Code Annotated (TCA) 62-6, unlicensed contractors performing work that requires a license are completely barred from seeking legal recourse for payment. This statute creates an absolute prohibition against unlicensed contractors recovering any compensation through the courts, regardless of whether materials were provided, labor was performed, or work was completed. The law is designed to protect consumers and enforce licensing requirements by removing financial incentives for unlicensed work.
Why the Other Options Are Wrong
Option A: Payment for materials only
Tennessee law does not allow unlicensed contractors to recover payment for any portion of their work, including materials. The statute creates a complete bar to legal recovery, not a partial one that would permit material costs to be recovered.
Option C: Payment for labor only
The law prohibits recovery of any compensation, including labor costs. Tennessee's licensing statute does not distinguish between different types of work performed - if the contractor is unlicensed, no portion of the work can be legally recovered through the courts.
Option D: Full payment plus interest
This is completely contrary to Tennessee law. Not only can unlicensed contractors not recover full payment, they cannot recover any payment at all, let alone additional interest. The statute creates a complete prohibition on legal recovery.
Memory Technique
Remember 'No License = No Legal Recovery' - Tennessee's TCA 62-6 creates a complete wall between unlicensed contractors and the courthouse door.
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