Under Virginia Code Title 54.1, what is the maximum monetary penalty that can be imposed for unlicensed contracting?
Correct Answer
C) $2,500 per violation
Virginia Code § 54.1-111 allows for civil penalties up to $2,500 per violation for unlicensed contracting activities.
Why This Is the Correct Answer
Virginia Code § 54.1-111 specifically authorizes civil penalties up to $2,500 per violation for unlicensed contracting. This is the statutory cap established by the General Assembly to deter unlicensed activity while remaining proportionate.
Why the Other Options Are Wrong
Option A: $10,000 per violation
$10,000 per violation is not the cap under § 54.1-111 for unlicensed contracting civil penalties. This figure may be confused with penalties in other regulatory contexts or other states.
Option B: $5,000 per violation
$5,000 per violation overstates the statutory maximum. Virginia's legislature set the civil penalty ceiling at $2,500 per violation, not $5,000.
Option D: $1,000 per violation
$1,000 per violation understates the maximum allowable penalty. While it may seem like a reasonable fine, Virginia law permits penalties up to $2,500 per individual violation.
Memory Technique
Think '2,500 = 2.5K for unlicensed work in VA.' Virginia is strict but not the strictest — $2,500 per slip, not $5,000 or $10,000.
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Under Virginia contractor law, what happens to a contractor's license if they fail to maintain required insurance coverage?
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