What is the minimum amount of the contractor's bond required under Business and Professions Code Section 7071.6 for a California contractor license?
Correct Answer
C) $25,000
Business and Professions Code Section 7071.6 requires contractors to maintain a contractor's bond in the amount of $25,000. This bond protects consumers and ensures that funds are available for claims against contractors who fail to pay for labor, materials, or other obligations related to construction work.
Why This Is the Correct Answer
Business and Professions Code Section 7071.6 sets the contractor's bond at $25,000. This bond is a prerequisite for licensure and protects consumers, subcontractors, and suppliers by providing a fund against contractor defaults on labor and material obligations.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 was the previous bond amount before California raised it. Candidates who studied older materials may select this, but as of the current law the amount is $25,000.
Option B: $50,000
$50,000 exceeds the required bond amount. It may be confused with other bond thresholds (e.g., disciplinary bonds under Section 7071.8, which are set at $25,000 on top of the regular bond, or larger public works payment bonds).
Option D: $20,000
$20,000 does not correspond to any current statutory amount under Section 7071.6 or closely related sections. It may appear as a plausible mid-range distractor.
Memory Technique
Remember: $25,000 = quarter-century bond. A California contractor's bond marks 25 years' worth of $1,000—that is your memory anchor. Section 7071.6 = $25K, no exceptions.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
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Under AB5 and the Dynamex decision, which factor is NOT part of the ABC test used to determine if a worker can be classified as an independent contractor in California?
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