Business & LicensingQuestion 444 of 690

A specialty contractor wants to use the word 'general' in its company name and advertising, even though it does not hold a Class A or Class B license. Under California law, this is:

a.Generally prohibited, because it can mislead consumers about the contractor's classification
b.Always permitted, because business names are not regulated
c.Permitted as long as the contractor explains it verbally to customers
d.Permitted only if the company name is in a foreign language

Explanation

Under §7059.1, a specialty contractor generally may not use the term 'general' in its name or advertising in a way that implies it holds a general engineering or general building license. Such usage can mislead consumers about the contractor's actual classification.

Law Reference: Bus. & Prof. Code §7059.1

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