Business & LicensingQuestion 527 of 1632

An unlicensed person posts online ads offering kitchen-remodel services for $20,000 and lists a fake license number. Which two statutes most directly reach the advertisement itself?

a.§7031 alone, which bars the unlicensed person from suing for payment
b.§7068 alone, because the advertiser named no qualifying individual
c.§7028.16, which covers unlicensed work in a declared disaster
d.§7027.1 forbids the ad, and §7027.2 allows it only under $1,000

Explanation

§7027.1(a) makes it a misdemeanor for any person to advertise for work covered by the contractors' law without holding a license in the classification advertised, punishable by a $700 to $1,000 fine on top of any other penalty. §7027.2 is the only opening: an unlicensed person may advertise only where the aggregate price is under $1,000 and the ad states that the person is not licensed, so a $20,000 remodel is outside it. (c) is the common mix-up — §7028.16 punishes unlicensed contracting for damage after a declared disaster, not advertising. (a) is a civil consequence of unlicensed work rather than a rule about ads, and (b) is about who qualifies a licensee, which this advertiser never became.

Law Reference: Bus. & Prof. Code §7027.1; §7027.2; §7028.16

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