Under TCA 62-6, what is the maximum civil penalty that can be imposed for unlicensed contracting in Tennessee?
Correct Answer
D) $1,000 per violation
TCA 62-6 allows for civil penalties up to $1,000 per violation for unlicensed contracting activities.
Why This Is the Correct Answer
TCA 62-6 explicitly caps civil penalties at $1,000 per violation for unlicensed contracting. This is the statutory maximum set by the Tennessee legislature to deter unlicensed activity while keeping the penalty proportionate.
Why the Other Options Are Wrong
Option A: $500 per violation
$500 per violation is too low — it is not the figure specified in TCA 62-6 and would understate the actual statutory maximum.
Option B: $2,500 per violation
$2,500 per violation exceeds the statutory cap under TCA 62-6. This figure may be confused with penalty amounts found in other states or other sections of Tennessee law.
Option C: $5,000 per violation
$5,000 per violation is significantly above the TCA 62-6 maximum. Candidates sometimes confuse this with criminal fine amounts or penalties for repeat offenders under separate provisions.
Memory Technique
Think of '1K per infraction' — one thousand dollars, one violation. TCA 62-6 = 1 number: $1,000.
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A homeowner in Nashville hires an unlicensed contractor for $8,000 worth of electrical work. The contractor demands payment but the work fails inspection. Under TCA 62-6, what recourse does the unlicensed contractor have?
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A contractor is installing a septic system for a new home in rural Tennessee. The estimated cost is $8,500. According to TCA 62-6, what licensing requirement applies?
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