Business Law and Licensing Requirements Flashcards

When a contractor moves to a new state, the NASCLA exam helps because many states offer reciprocity to candidates who have passed which exam?

Answer: NASCLA Contractors Business and Law Exam

Many states offer licensing reciprocity to contractors who have passed the NASCLA Contractors Business and Law Exam, easing multi-state licensing.

A subcontractor license is typically required when the subcontract value exceeds what threshold in most states?

Answer: The threshold varies by state but is defined by state law

Subcontractor licensing thresholds vary by state; contractors must know their specific state's dollar threshold requirements.

Which of the following would most likely cause a contractor's license to be revoked?

Answer: Abandoning a project without cause or just compensation

Abandoning a project without legal justification is a serious violation that can result in license revocation and civil liability.

A contractor's license bond primarily protects which party?

Answer: The general public and project owners

A contractor's license bond protects members of the public and project owners from financial harm caused by the contractor's failure to comply with licensing laws.

Which act prohibits contractors from discriminating in hiring based on race, color, religion, sex, or national origin?

Answer: Civil Rights Act of 1964, Title VII

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin for employers with 15 or more employees.

What is the statute of limitations in the context of contractor licensing and construction law?

Answer: The time limit within which a legal action must be filed

The statute of limitations is the legally defined period within which a lawsuit or claim must be filed, after which the claim is barred.