Business & LicensingQuestion 10 of 1632
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 §7031This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)