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TennesseeTN Supplementmedium100% of exam part

A Tennessee contractor fails to complete work as specified in the contract. The homeowner files a complaint with the licensing board. What is the maximum disciplinary fine that can be imposed?

Correct Answer

A) $10,000

Tennessee contractor licensing law allows the board to impose fines up to $10,000 for violations.

Answer Options
A
$10,000
B
$2,500
C
$1,000
D
$5,000

Why This Is the Correct Answer

$10,000 is the maximum civil penalty the Tennessee Board for Licensing Contractors can impose per violation under Tennessee Code Annotated. This ceiling applies to violations including failure to perform contracted work, unlicensed contracting, and other disciplinary matters brought before the board.

Why the Other Options Are Wrong

Option B: $2,500

$2,500 is below the statutory maximum. This figure may be confused with fine caps in other state licensing contexts or with small-claims thresholds. Tennessee law sets the cap significantly higher at $10,000.

Option C: $1,000

$1,000 is far below the maximum. This amount would represent a minimal penalty and does not reflect the seriousness with which Tennessee treats contractor violations. The $10,000 maximum exists to provide meaningful deterrence.

Option D: $5,000

$5,000 is half the actual maximum. Candidates may select this as a 'reasonable middle ground,' but Tennessee law specifically authorizes up to $10,000 per violation. There is no statutory basis for a $5,000 cap in this context.

Memory Technique

Tennessee = Ten Thousand. The 'Ten' in Tennessee corresponds to the $10,000 maximum fine. This mnemonic is not coincidental β€” use it to lock in the number. Ten-nessee = $10,000.

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