Under Michigan regulations, what is the maximum penalty for unlicensed contracting for work valued over $600?
Correct Answer
C) Felony charge
Under Michigan Act 299, unlicensed contracting for work valued over $600 can result in felony charges, reflecting the serious nature of this violation.
Why This Is the Correct Answer
The correct answer is C (Felony charge). Under Michigan Act 299 (Occupational Code), performing residential contracting work over $600 without a license is classified as a felony offense, reflecting the legislature's intent to strongly deter unlicensed activity that could endanger public safety.
Why the Other Options Are Wrong
Option A: Civil fine only
Civil fine only is incorrect. While civil fines may also apply, they are not the maximum penalty. The maximum penalty for unlicensed contracting over $600 in Michigan rises to criminal prosecution, specifically felony charges.
Option B: Administrative warning
Administrative warning is incorrect. An administrative warning is a minor regulatory response used for technical violations, not for the serious offense of unlicensed contracting above the $600 threshold.
Option D: Misdemeanor charge
Misdemeanor charge is incorrect. Though a misdemeanor sounds serious, Michigan law elevates unlicensed contracting over $600 to felony status — a more severe classification than a misdemeanor.
Memory Technique
Think: '$600 = Felony.' The number $600 is your trigger — any unlicensed work above that amount in Michigan is felony territory, not just a slap on the wrist.
More Michigan Questions
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Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
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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?
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