Under Michigan Act 299, which violation would result in immediate license suspension?
Correct Answer
A) Conviction of a felony involving fraud
Conviction of a felony involving fraud, deceit, or dishonesty is grounds for immediate license suspension or revocation under Michigan Act 299.
Why This Is the Correct Answer
Michigan Act 299 (Occupational Code) specifies that conviction of a felony involving fraud, deceit, or dishonesty is grounds for immediate license suspension or revocation. This reflects the state's stance that integrity crimes are fundamentally incompatible with holding a contractor license.
Why the Other Options Are Wrong
Option B: Incomplete continuing education
Incomplete continuing education is a compliance issue that results in license non-renewal or administrative penalties, but it does not trigger immediate suspension. The licensee is typically given an opportunity to cure the deficiency.
Option C: Late license renewal
Late license renewal results in an expired license and associated late fees, but it is an administrative matter — not a ground for immediate suspension. The contractor can typically reinstate by completing the renewal process.
Option D: Failure to maintain minimum net worth
Failure to maintain minimum net worth may affect a contractor's ability to renew their license or bond eligibility, but it is not a ground for immediate suspension under Act 299.
Memory Technique
Think 'Felony = Immediate Freeze.' A fraud felony conviction hits the contractor's license like a freeze order — it's immediate and serious. Administrative issues like CE or late renewal are 'warm warnings' — they give the contractor a chance to fix things.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
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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?
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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:
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