A homeowner in Oregon discovers that their contractor performed work without a valid CCB license. The work was completed 18 months ago and cost $12,000. What remedy is available under ORS 701?
Correct Answer
B) Full refund of contract price plus damages
Under ORS 701, homeowners can recover the full contract price plus damages when work is performed by an unlicensed contractor, regardless of work quality.
Why This Is the Correct Answer
ORS Chapter 701 (Oregon Construction Contractors Board) provides strong consumer protection: homeowners can recover the full contract price plus additional damages when work is performed by an unlicensed contractor. The remedy is not limited to repair costs or partial refunds, and no 'time bar' defeats the claim simply because 18 months have passed. The CCB surety bond and enforcement mechanisms exist specifically for this scenario.
Why the Other Options Are Wrong
Option A: Repair work at contractor's expense only
Requiring repair work at the contractor's expense only is an inadequate remedy under ORS 701. Oregon law goes further by allowing full financial recovery, not merely correction of defective work. Repair-only remedies would not compensate for the homeowner's loss of contracting with an unlicensed party.
Option C: No remedy available due to time limit
There is no 12-month or 18-month time bar that eliminates all remedies under ORS 701 for unlicensed contractor work. Oregon's statute of limitations for CCB-related claims is generally longer (up to 2 years for discovery-based claims), and the facts here do not establish that any limitation period has expired.
Option D: Partial refund of 50% of contract price
A 50% partial refund is not the statutory remedy established by ORS 701. This distractor tests whether candidates understand that Oregon's consumer protection framework for unlicensed contractor work is more comprehensive than a negotiated partial settlement.
Memory Technique
ORS 701 = Oregon's 'Full Recovery Rule.' Unlicensed = Full refund + damages. Think of it as: if you weren't licensed, the homeowner gets everything back. No partial deals, no time tricks at 18 months.
More or-supplement Questions
Under ORS 701, what is the minimum amount of public liability insurance required for a CCB licensed contractor?
An employee is injured on a job site. The contractor's workers compensation premium was $2,400 annually. If they were operating without coverage, what is the minimum penalty multiplier applied to the premium?
A contractor completes a $12,000 deck project but the homeowner claims defective work. Under ORS 87, how long does the contractor have to file a lien for unpaid amounts?
Under ORS 701, what is the maximum amount a residential contractor can collect as a down payment before starting work?
A homeowner cancels a $8,000 roofing contract within the 3-day right to cancel period. The contractor had already ordered $1,200 in custom materials. How much can the contractor retain?
A general contractor hires a subcontractor who performs $15,000 worth of electrical work. The property owner pays the general contractor but the general contractor fails to pay the subcontractor. Calculate the subcontractor's maximum lien claim under ORS 87.
A renovation project in a 1972 home will disturb 15 square feet of painted trim. The contractor is not RRP certified. What must they do under Oregon lead regulations?
What is the minimum experience requirement for obtaining an Oregon CCB contractor license?
A homeowner hired an unlicensed contractor who abandoned a $25,000 project. The homeowner wants to file a claim with the CCB. What is the likely outcome?
A residential contractor completes a $35,000 kitchen remodel but fails to obtain required permits. Under Oregon law, what is the potential penalty?
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