A qualifying individual's bond under B&P Code Section 7071.11 must be in what amount, and what happens if the qualifying individual disassociates from the contractor?
Correct Answer
C) $12,500; the contractor has 90 days to replace the qualifying individual or the license becomes invalid
Business and Professions Code Section 7071.11 requires a $12,500 bond for the qualifying individual. Section 7068.2 provides that when a qualifying individual disassociates, the contractor has 90 days to replace them or the license becomes invalid. This ensures continuous qualified supervision of contractor operations and maintains consumer protection.
Why This Is the Correct Answer
$12,500 is the statutory bond amount for a qualifying individual under B&P 7071.11. Section 7068.2 gives the contractor 90 days to replace a departing qualifying individual before the license becomes invalid. These two provisions together protect consumers while allowing contractors a reasonable transition period.
Why the Other Options Are Wrong
Option A: $12,500; the contractor license becomes invalid immediately
$12,500 is correct for the bond amount, but 'immediately invalid' is wrong — the law provides a 90-day grace period under Section 7068.2, not immediate invalidity.
Option B: $15,000; the contractor has 60 days to replace the qualifying individual
$15,000 is the standard contractor license bond amount (B&P 7071.6), not the qualifying individual bond amount, which is $12,500. Additionally, the replacement window is 90 days, not 60 days.
Option D: $25,000; the contractor has 90 days to replace the qualifying individual
$25,000 is not the correct bond amount for a qualifying individual. The $12,500 figure is specific to the qualifying individual bond; $25,000 is not referenced in this context.
Memory Technique
Think '12.5 and 90' — $12,500 bond, 90 days to replace. The qualifying individual's bond is half of $25,000 and the replacement window is a full fiscal quarter (90 days).
More law-business Questions
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According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
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