A homeowner in Tennessee hires a contractor for a kitchen renovation costing $28,000. The contractor begins work without proper licensing. What is the maximum civil penalty the contractor may face under Tennessee law?
Correct Answer
B) $5,000 per violation
Tennessee law provides for civil penalties up to $5,000 per violation for unlicensed contracting.
Why This Is the Correct Answer
$5,000 per violation is the maximum civil penalty established under Tennessee law for unlicensed contracting. Each instance of contracting without a license can be treated as a separate violation, making enforcement financially significant.
Why the Other Options Are Wrong
Option A: $2,500 per violation
$2,500 per violation understates the statutory maximum. While it might seem reasonable, Tennessee law sets the ceiling higher at $5,000 to deter unlicensed activity on larger projects.
Option C: $10,000 per violation
$10,000 per violation exceeds the statutory maximum civil penalty for unlicensed contracting in Tennessee. This figure is not supported by TCA 62-6 provisions.
Option D: $1,000 per violation
$1,000 per violation is far below the statutory maximum and would not serve as an effective deterrent for unlicensed contractors taking on projects worth tens of thousands of dollars.
More Tennessee Questions
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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?
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Previous Question
A homeowner contracts for a $28,000 kitchen renovation. The contractor requests $14,000 upfront payment. What does Tennessee law allow for upfront payments on residential contracts?
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