Under NC General Statutes Chapter 87, what is the penalty for contracting without a license for work requiring a license?
Correct Answer
A) Class 3 misdemeanor
Contracting without a required license is classified as a Class 3 misdemeanor under NC General Statutes Chapter 87.
Why This Is the Correct Answer
NC General Statutes Chapter 87 explicitly classifies contracting without a required license as a Class 3 misdemeanor. This is a criminal penalty, not merely a civil fine. A Class 3 misdemeanor is the lowest level of misdemeanor in NC but still creates a criminal record and can carry fines and potential imprisonment.
Why the Other Options Are Wrong
Option B: Civil penalty only
Incorrect. While civil penalties may also be pursued in some situations, Chapter 87 specifically establishes a criminal classification (Class 3 misdemeanor) for unlicensed contracting — not a civil penalty only. The criminal nature of the violation is a key aspect of the statute.
Option C: Warning letter for first offense
Incorrect. NC Chapter 87 does not provide for a warning letter for first-time offenders. The statute imposes a Class 3 misdemeanor regardless of whether it is a first offense. There is no graduated warning system built into the licensing violation provisions.
Option D: Class 1 misdemeanor
Incorrect. A Class 1 misdemeanor is more serious than what Chapter 87 prescribes for unlicensed contracting. NC classifies this violation as a Class 3 misdemeanor (the least severe misdemeanor level), not a Class 1. Selecting Class 1 overstates the severity.
Memory Technique
NC misdemeanors go from Class A1 (most severe) down to Class 3 (least severe). Unlicensed contracting = Class 3 = the 'last class.' Think: 'No license, no class — specifically no Class 3.' Or remember '3 strikes and you're out' — but in this case, one strike lands you a Class 3.
More North Carolina Questions
A residential contractor in NC wants to bid on a $125,000 project but currently holds an Intermediate license. What action must be taken?
A contractor discovers contaminated soil during excavation on a commercial project in Charlotte. Under NC environmental regulations, what is the first required action?
A North Carolina contractor completes a $45,000 residential addition project. The homeowner refuses to pay the final $8,000. What is the filing deadline for a mechanic's lien under NC lien law?
A residential contractor in Charlotte is building a deck addition. Which inspection is typically required first under NC building codes?
A contractor performs work on a residential property in North Carolina but is not paid. The work was completed on March 15th, and the last material was delivered on March 20th. What is the deadline to file a claim of lien?
A subcontractor performing electrical work discovers that the general contractor's license has been suspended. What action should the subcontractor take according to NC General Statutes?
A contractor in North Carolina discovers contaminated soil during excavation. The soil contains petroleum products above reportable levels. Which agency must be notified immediately?
A contractor performing work on a North Carolina highway project encounters a suspected archaeological artifact. What is the required action under NC environmental regulations?
Calculate the workers' compensation premium for a NC roofing contractor with $250,000 in annual payroll and a rate of $18.50 per $100 of payroll:
Calculate the lien amount a subcontractor can claim on a $180,000 project where they provided $35,000 in materials and labor, but the general contractor still owes them $12,000:
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A subcontractor completed electrical work on March 15th but the general contractor has not paid the $28,000 invoice. Under NC lien law, if the subcontractor wants to preserve lien rights, the latest date to file a claim of lien is:
Next Question
Which NC building code edition is currently adopted for residential construction?