Which Business and Professions Code section specifically addresses the prohibition against contracting without a license?
Correct Answer
D) Section 7031
B&P Code Section 7031 establishes the prohibition against contracting without a license and related penalties.
Why This Is the Correct Answer
B&P Code Section 7031 is the foundational provision that prohibits unlicensed contracting and establishes the consequences, including the inability of an unlicensed contractor to bring or maintain a civil action for compensation for work performed. It is the core enforcement statute for the CSLB licensing requirement.
Why the Other Options Are Wrong
Option A: Section 7028
Section 7028 addresses the criminal penalty for contracting without a license (misdemeanor), but it is not the primary section that establishes the prohibition itself and the civil consequences (the inability to sue for payment). Section 7031 is the broader and more foundational prohibition section tested on the exam.
Option B: Section 7110
Section 7110 addresses grounds for disciplinary action against licensed contractors — it covers causes for license suspension or revocation. It does not address the prohibition against operating without a license in the first place.
Option C: Section 7048
Section 7048 provides a limited exemption from the licensing requirement for projects under $500 (the handyman exemption). It is an exception to the licensing requirement, not the prohibition itself.
Memory Technique
7031 = 'Zero payment if not licensed.' The '31' can remind you of the final outcome: unlicensed contractors get $0 — they cannot recover payment in court. Section 7028 is the criminal side; 7031 is the civil side.
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Under B&P Code Section 7110, what is the maximum civil penalty that can be imposed for contracting without a license on a single project?
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A Class C-10 electrical contractor has a bond claim filed against them for $8,000. The contractor's license bond amount is $25,000. If the claim is valid and paid, what happens to the contractor's license status?