Under Michigan Act 299, a contractor's license can be suspended for all of the following reasons EXCEPT:
Correct Answer
A) Filing for personal bankruptcy
Filing for personal bankruptcy alone is not grounds for license suspension under Michigan Act 299.
Why This Is the Correct Answer
Filing for personal bankruptcy is NOT a ground for license suspension under Michigan Act 299. Bankruptcy is a federal legal remedy that protects individuals and businesses from creditors; it does not, on its own, indicate professional misconduct or incompetence. Michigan's licensing authority cannot penalize a contractor solely for seeking bankruptcy protection.
Why the Other Options Are Wrong
Option B: Failure to maintain required insurance
Failure to maintain required insurance is an explicit ground for license suspension under Act 299. Insurance requirements (general liability, workers' compensation, auto) are ongoing conditions of licensure, and lapses directly threaten the public.
Option C: Conviction of a felony related to the construction business
Conviction of a felony related to the construction business is a clear ground for suspension. A felony conviction — such as fraud, theft, or bribery involving construction work — directly calls the licensee's fitness and trustworthiness into question.
Option D: Abandoning a construction project without justification
Abandoning a construction project without justification is a ground for suspension under Act 299. Unjustified abandonment harms consumers and violates the duty a licensed contractor owes to clients.
Memory Technique
Remember the acronym 'FCA' for valid suspension grounds: Felony, Coverage (insurance) lapse, Abandonment. Bankruptcy does not fit into FCA — it is a financial remedy, not a professional violation.
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