According to TCA 62-6, what is the maximum monetary limit for a Class 1 contractor license in Tennessee?
Correct Answer
C) $100,000
TCA 62-6 establishes Class 1 contractor licenses with a maximum monetary limit of $100,000 per project.
Why This Is the Correct Answer
TCA 62-6 defines Class 1 as the entry-level contractor license in Tennessee with a project monetary limit of $100,000. This classification is designed for smaller contractors working on limited-scope projects.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is below the Class 1 threshold and does not correspond to any classification defined in TCA 62-6; it may reflect confusion with home improvement contractor thresholds in other states.
Option B: $25,000
$25,000 is too low and is not a defined monetary limit under TCA 62-6 for any contractor classification; candidates may confuse this with unlicensed threshold amounts.
Option D: $250,000
$250,000 exceeds the Class 1 limit and is more consistent with intermediate license classifications; selecting this reflects misremembering the classification tiers.
Memory Technique
Tennessee Class 1 = $100K cap. Remember: '1 = $100K' — the class number and the dollar amount both start with 1. Class 2 = $750K, Class 3 = unlimited (no cap).
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