General Contractor License Law Flashcards
7 cards from real General Contractor License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 General Contractor License Law flashcards as text
Under most state licensing laws, which action constitutes 'unlicensed contracting'?
Answer: Bidding on a project without a license
Submitting a bid for work that requires a contractor's license, without holding that license, constitutes unlicensed contracting in most states.
A general contractor's license bond primarily protects:
Answer: The public and project owners from contractor defaults
License bonds are required to protect the public and project owners if the contractor fails to fulfill contractual obligations or violates licensing laws.
What is the typical consequence for a licensed contractor who allows another person to 'use' their license number for a fee?
Answer: License revocation and potential criminal charges
License 'lending' or 'brokering' is a serious violation that typically results in revocation of the licensee's license and can carry criminal penalties.
Which of the following is generally NOT grounds for disciplinary action against a general contractor's license?
Answer: Winning a competitive bid
Winning a competitive bid through legitimate means is not a licensing violation; it is the expected outcome of the bidding process.
When must a general contractor typically display or provide their license number?
Answer: On all contracts, bids, and advertising materials
Most state licensing laws require contractors to include their license number on all contracts, bids, advertisements, and business documents.
A contractor's license is classified as a 'professional privilege.' This means:
Answer: It is granted by the state and can be taken away for cause
A license is a privilege granted by the state, not a constitutional right, so it can be suspended or revoked if the licensee violates applicable laws.
If a general contractor's license lapses due to non-renewal, contracts signed during the lapse period are typically:
Answer: Unenforceable and the contractor may not collect payment
Most states render contracts entered into while a license was expired unenforceable, meaning the contractor cannot sue to collect payment for that work.