Under TCA 62-6, what is the maximum penalty for contracting without a license in Tennessee?
Correct Answer
A) $5,000 fine and 6 months in jail
TCA 62-6 allows for maximum penalties of $5,000 fine and up to 6 months imprisonment for contracting without a license.
Why This Is the Correct Answer
Tennessee Code Annotated Section 62-6 classifies unlicensed contracting as a Class A misdemeanor, carrying a maximum penalty of a $5,000 fine and up to 6 months in jail. This reflects Tennessee's strong stance on consumer protection and contractor accountability.
Why the Other Options Are Wrong
Option C: $2,500 fine only
$1,000 fine and 30 days is far below the statutory maximum. This may represent minimum or typical penalties for minor infractions but is not the maximum authorized under TCA 62-6.
Option D: $500 fine
$2,500 fine only understates both the maximum fine and omits the jail component. Unlicensed contracting in Tennessee carries criminal penalties, not just civil fines.
Memory Technique
Tennessee's '5 and 6 Rule': $5,000 fine + 6 months jail = the max. Think of the number pattern 5-6 going up sequentially β five thousand dollars, six months behind bars.
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