EstatePass
law-businessMechanics Lien LawMEDIUM

Which statement is correct regarding stop payment notices under California Civil Code Section 8500 et seq.?

Correct Answer

B) An unbonded stop payment notice is limited to the lesser of the claim amount or the funds due to the direct contractor

Under California Civil Code Section 8502, an unbonded stop payment notice is limited to the lesser of the claim amount or the funds due or to become due to the direct contractor. This limitation protects property owners from paying more than they actually owe.

Answer Options
A
Only direct contractors can serve stop payment notices
B
An unbonded stop payment notice is limited to the lesser of the claim amount or the funds due to the direct contractor
C
Stop payment notices must be served within 90 days of completion of work
D
Stop payment notices can only be served on private work projects

Why This Is the Correct Answer

Under California Civil Code Section 8502, an unbonded stop payment notice is limited to the lesser of the claim amount or the funds due or to become due to the direct contractor. This limitation protects property owners from paying more than they actually owe.

Was this explanation helpful?

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?

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing