Business & LicensingQuestion 10 of 1605
Which statement about unlicensed contractors is TRUE?
a.They may legally perform work under $1,000
b.They cannot enforce a contract in court or collect payment
c.They may work as a subcontractor under a licensed contractor
d.They may collect payment for work already completed
Explanation
Unlicensed contractors generally cannot enforce contracts or collect compensation in court. The minor-work exemption (§7048) applies to the total project cost, not just labor, and has strict conditions — the threshold was raised from $500 to $1,000 by AB 2622 (in effect for 2026).
Law Reference: Bus. & Prof. Code §7031Practice all 1605 questions free — no signup required.
Related questions on this topic
- If a contractor operates under a fictitious business name (DBA), the name must be:
- The CSLB may issue a Disciplinary Bond in addition to the regular license bond when:
- How often must a CSLB contractor license be renewed?
- A contractor whose license has been expired for more than five years must:
- A Class "A" General Engineering Contractor license authorizes work primarily involving:
- Who is responsible for verifying that a subcontractor is properly licensed before awarding them work?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)