Business & LicensingQuestion 408 of 690
A homeowner hires an unlicensed contractor who completes a $40,000 remodel and is fully paid. Under §7031, the homeowner may:
a.Sue to recover all compensation paid to the unlicensed contractor
b.Recover nothing because the work was completed
c.Recover only the cost of any defects
d.Recover only the contractor's profit margin
Explanation
Section §7031 allows a person who used an unlicensed contractor to recover, through disgorgement, all compensation paid for the work, even if the work was completed satisfactorily. Being unlicensed is a powerful penalty under California law.
Law Reference: Bus. & Prof. Code §7031Practice all 690 questions free — no signup required.
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