Under B&P Code Section 7110, what is the maximum civil penalty that can be imposed for contracting without a license on a single project?
Correct Answer
B) $15,000
B&P Code Section 7110 allows for civil penalties up to $15,000 per project for unlicensed contracting activity.
Why This Is the Correct Answer
B&P Code Section 7110 authorizes civil penalties up to $15,000 per project for unlicensed contracting activity. This penalty is in addition to criminal penalties that may apply under Section 7028, which makes unlicensed contracting a misdemeanor. The civil penalty is assessed on a per-project basis.
Why the Other Options Are Wrong
Option A: $10,000
$10,000 is incorrect. This is a common guess because it is a round number that sounds like a regulatory penalty, but Section 7110 specifies $15,000 as the maximum.
Option C: $20,000
$20,000 is incorrect. This exceeds the statutory cap in Section 7110. The legislature set the maximum at $15,000, not $20,000.
Option D: $5,000
$5,000 is incorrect. This is far below the statutory maximum. A $5,000 penalty would be insufficient deterrence given the seriousness of unlicensed contracting.
Memory Technique
Section 7110 = Fifteen = $15,000. Think: '7-1-1-0 sounds like 7-Eleven' and a trip to 7-Eleven costs you — $15 is the max you'd spend. (Unconventional, but: 7+1+1+0 = 9, and $15K = $9K short of $24K… try instead: Section 7110 has four digits summing to 9, and $15K = 9+6 = $15K.) Simpler: just memorize $15,000 per project for Section 7110.
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