Under NC General Statutes Chapter 87, what is the maximum civil penalty for contracting without a license?
Correct Answer
D) $2,000 per violation
NC General Statutes Chapter 87 establishes a maximum civil penalty of $2,000 per violation for contracting without a proper license.
Why This Is the Correct Answer
NC General Statutes Chapter 87 sets the maximum civil penalty for unlicensed contracting at $2,000 per violation. This is a specific statutory figure tested on the NC contractor exam.
Why the Other Options Are Wrong
Option A: $1,000 per violation
$1,000 per violation is below the statutory maximum of $2,000. This figure might be confused with penalty amounts in other NC statutes or neighboring states.
Option B: $500 per violation
$500 per violation is significantly below the NC Chapter 87 cap. It is more consistent with minor administrative violations in other licensing contexts and is not the figure for unlicensed contracting.
Option C: $5,000 per violation
$5,000 per violation exceeds the Chapter 87 maximum civil penalty. Higher penalty amounts may apply to criminal sanctions or repeat violations in other contexts, but the civil maximum under Chapter 87 is $2,000.
Memory Technique
NC Chapter 87, unlicensed contracting: $2,000 civil penalty maximum. Think '87 + 2 = the chapter and the number of thousands.' Chapter 87, two thousand dollars.
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