Calculate the lien amount a material supplier can claim in NC if they supplied $25,000 in materials but were only paid $15,000:
Correct Answer
D) $10,000
Under NC lien law, a material supplier can only claim a lien for the unpaid balance: $25,000 - $15,000 = $10,000.
Why This Is the Correct Answer
Under NC lien law, a material supplier's lien is limited to the UNPAID balance owed, not the total contract value or total materials supplied. The calculation is: $25,000 (materials supplied) − $15,000 (amount paid) = $10,000. A supplier cannot lien for more than what remains owed.
Why the Other Options Are Wrong
Option A: $25,000
Option A ('$25,000') is incorrect. Liening for the full contract amount would include the $15,000 already paid, which constitutes unjust enrichment. The lien is only for the unpaid portion.
Option B: $40,000
Option B ('$40,000') is incorrect. This figure ($25,000 + $15,000) adds the two numbers together rather than subtracting. There is no legal basis to combine total materials and payments received to arrive at a lien amount.
Option C: $15,000
Option C ('$15,000') is incorrect. $15,000 is the amount already paid — precisely the amount that should NOT be in the lien, as it has already been satisfied.
Memory Technique
Lien = What's Left. The lien amount is what's LEFT unpaid. Total supplied MINUS total received = what's left. Visualize a bill: you supplied $25K worth, they paid $15K, so the invoice balance (the lien) is $10K.
More North Carolina Questions
A residential contractor in NC wants to bid on a $125,000 project but currently holds an Intermediate license. What action must be taken?
A contractor discovers contaminated soil during excavation on a commercial project in Charlotte. Under NC environmental regulations, what is the first required action?
A North Carolina contractor completes a $45,000 residential addition project. The homeowner refuses to pay the final $8,000. What is the filing deadline for a mechanic's lien under NC lien law?
A residential contractor in Charlotte is building a deck addition. Which inspection is typically required first under NC building codes?
A contractor performs work on a residential property in North Carolina but is not paid. The work was completed on March 15th, and the last material was delivered on March 20th. What is the deadline to file a claim of lien?
A subcontractor performing electrical work discovers that the general contractor's license has been suspended. What action should the subcontractor take according to NC General Statutes?
A contractor in North Carolina discovers contaminated soil during excavation. The soil contains petroleum products above reportable levels. Which agency must be notified immediately?
A contractor performing work on a North Carolina highway project encounters a suspected archaeological artifact. What is the required action under NC environmental regulations?
Calculate the workers' compensation premium for a NC roofing contractor with $250,000 in annual payroll and a rate of $18.50 per $100 of payroll:
Calculate the lien amount a subcontractor can claim on a $180,000 project where they provided $35,000 in materials and labor, but the general contractor still owes them $12,000:
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass