Under Virginia Code Title 54.1, what is the maximum penalty for contracting without a license on a project valued at $75,000?
Correct Answer
D) $10,000 fine and Class 6 felony
Contracting without a license on projects over $1,000 can result in fines up to $10,000 and felony charges, with penalties increasing based on project value.
Why This Is the Correct Answer
Under Virginia Code Title 54.1, contracting without a license on projects valued at $10,000 or more is classified as a Class 6 felony with fines up to $10,000. A $75,000 project far exceeds the $10,000 threshold that elevates the offense to felony status, making option D the correct answer.
Why the Other Options Are Wrong
Option A: $2,500 fine and Class 1 misdemeanor
A $2,500 fine and Class 1 misdemeanor describes a lesser penalty tier. Class 1 misdemeanors apply to smaller unlicensed contracting violations. A $75,000 project triggers felony-level consequences under VA law.
Option B: $5,000 fine
A $5,000 fine alone understates both the dollar penalty and the criminal classification. VA Code Title 54.1 allows up to $10,000 in fines and adds felony charges for projects of this magnitude.
Option C: $1,000 fine
A $1,000 fine is far below the maximum penalty for unlicensed contracting at the $75,000 project level. This amount would be more consistent with minor administrative violations, not unlicensed contracting on a significant project.
Memory Technique
VA = Very Aggressive: $10,000 fine + Class 6 Felony for big unlicensed jobs. The '6' in Class 6 felony and the '$10,000' both relate to the number 10 — 10K dollars, Class 6 (6 letters in 'felony').
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