Under B&P Code Section 7071.17, what is the maximum amount that can be awarded from the Contractors' State License Fund for a single claim?
Correct Answer
A) $12,500
The Contractors' State License Fund has a maximum payout of $12,500 per individual claim as specified in B&P Code Section 7071.17.
Why This Is the Correct Answer
B&P Code Section 7071.17 establishes the Contractors' State License Fund as a consumer protection mechanism. The statute caps individual claim awards at $12,500. This limit applies per claimant and is designed to provide meaningful but bounded relief for consumers harmed by unlicensed or dishonest contractor activity.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 is double the actual cap. While this amount appears in other consumer protection contexts in California, B&P Code Section 7071.17 specifically limits single claims to $12,500.
Option C: $50,000
$50,000 significantly overstates the Fund's per-claim limit. This figure would more accurately describe aggregate limits or other financial instruments, not the individual claim cap under Section 7071.17.
Option D: $15,000
$15,000 is close to the correct answer but incorrect. This figure may be confused with contractor bond amounts ($15,000 is the bond for some classifications) — do not mix up bond amounts with Fund claim limits.
Memory Technique
Remember: '$12,500 from the Fund.' A helpful anchor: $12,500 = $12K + $500 = the price of a used car. The Fund won't make you rich, but it will cover a significant contractor dispute. Also: 12,500 is exactly half of $25,000 — if you're tempted to say $25K, cut it in half.
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