Under Michigan Act 299, a contractor's license expires on what date regardless of when it was originally issued?
Correct Answer
B) December 31st of the third year
Michigan contractor licenses expire on December 31st of the third year after issuance, creating a uniform expiration date regardless of when the license was originally issued.
Why This Is the Correct Answer
Michigan Act 299 establishes a standardized expiration date of December 31st of the third year following issuance. This uniform expiration date applies regardless of when during the year the license was originally issued, simplifying the renewal tracking process for both contractors and the state licensing authority.
Why the Other Options Are Wrong
Option A: The anniversary date of issuance
License expiration does not track the anniversary date of issuance. Michigan uses a fixed calendar date (December 31st) to create uniformity across all licensees. Anniversary-based expiration is how some other states and licenses operate, but not Michigan contractor licenses under Act 299.
Option C: June 30th of the third year
June 30th is the mid-year point and is not the expiration date established by Act 299 for contractor licenses. This date does not appear as a contractor license expiration date in the statute.
Option D: March 31st of the third year
March 31st is not the established expiration date under Act 299. This distractor tests whether candidates know the specific month, not just the concept of a fixed annual date.
Memory Technique
Michigan contractor licenses expire with the year β December 31st, the last day of the year. Think: 'My Michigan contractor license expires when the year expires.' Both end on December 31st.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
People Also Study
Business & Financial Management
120 questions Β· 70% to pass
Contract Administration
60 questions Β· 70% to pass
Project Management
60 questions Β· 70% to pass
Related Study Resources
Previous Question
A subcontractor performs $45,000 of electrical work but is not paid by the general contractor. Under Michigan lien law, what preliminary notice requirement must be satisfied to preserve lien rights?
Next Question
Which Michigan agency has primary regulatory authority over contractor licensing and compliance?
