Business & LicensingQuestion 415 of 690
What is the primary purpose of the $25,000 Contractor License Bond required by §7071.6?
a.To protect consumers, employees, and subcontractors harmed by the contractor's violations
b.To guarantee the contractor's profits on each project
c.To pay the contractor's renewal fees automatically
d.To replace workers' compensation insurance
Explanation
The §7071.6 contractor license bond provides a source of recovery for consumers, employees who are owed wages, and others harmed by a contractor's violation of the Contractors State License Law. It is not insurance for the contractor's own benefit.
Law Reference: Bus. & Prof. Code §7071.6Practice all 690 questions free — no signup required.
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