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 the doctrine of 'substantial compliance,' an unlicensed contractor may sometimes recover payment if they can show:
Answer: They held a license for most of the project duration
Some states apply the substantial compliance doctrine when a contractor held a valid license for most of the contract period but had a brief lapse, allowing limited recovery.
What does 'responsible managing employee' (RME) mean in contractor licensing law?
Answer: A licensed individual who qualifies a business entity for licensure
An RME is a licensed individual whose qualifications are used to obtain or maintain a contractor's license on behalf of a business entity.
When an RME leaves a contracting company, the company typically must:
Answer: Notify the licensing board and replace the qualifier within a set period
State laws generally require the company to report the change and designate a new qualifying individual within a specified timeframe or risk license suspension.
Which federal law impacts contractor licensing by restricting the use of criminal records in licensing decisions?
Answer: State-level occupational licensing reform laws (not a single federal law)
There is no single federal law restricting criminal history in contractor licensing; this is governed by individual state occupational licensing reform statutes.
A homeowner hires an unlicensed contractor and later suffers damages from faulty work. Which is most likely true?
Answer: The homeowner may pursue the contractor civilly even though no license existed
The homeowner can still pursue civil claims for negligence or breach of contract regardless of the contractor's licensing status.
What is a 'home improvement' license, and how does it differ from a general contractor license?
Answer: It is a specialized license limited to residential repair and renovation work
Many states issue separate home improvement contractor licenses that are limited in scope to residential repair, renovation, or remodeling rather than new construction.
A contractor convicted of a crime 'substantially related' to contracting may face license denial. Which crime is MOST likely to qualify?
Answer: Bid rigging or construction fraud
Bid rigging and construction fraud are directly related to contracting activities and are classic examples of crimes substantially related to the profession.