JKL Construction's license was suspended for 6 months. During suspension, they complete work on a $15,000 project started before suspension. What penalty do they face?
Correct Answer
A) $5,000 to $15,000 penalty range
Per B&P Code Section 7028.7, contracting while suspended carries penalties of $5,000 to $15,000, regardless of when work began.
Why This Is the Correct Answer
B&P Code Section 7028.7 imposes a civil penalty range of $5,000 to $15,000 for contracting while a license is suspended. The law makes no exception for work that was started prior to the suspension — once a license is suspended, all contracting activity must cease regardless of project stage.
Why the Other Options Are Wrong
Option B: $500 minimum penalty
A $500 minimum penalty dramatically understates the statutory penalty for contracting while suspended. B&P Code 7028.7 sets the floor at $5,000, not $500, reflecting the seriousness of this violation.
Option C: No penalty - work was started before suspension
There is no 'work-in-progress' exemption under California law. A suspended license prohibits all contracting activity, including completing projects that were already underway. Assuming prior-start work is exempt is a common and costly mistake.
Option D: Automatic license revocation
Automatic license revocation is not the prescribed penalty under B&P Code 7028.7 for contracting while suspended. Revocation is a separate, more serious disciplinary action that typically requires a formal hearing process; the statute specifically provides for civil monetary penalties in this range.
Memory Technique
Think '$5K to $15K — the job's cost is your fine floor.' The project was worth $15,000, which happens to equal the penalty ceiling — a useful coincidence to anchor the range. Also remember: suspension = stop everything, no exceptions.
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