A contractor abandons a job without justification after receiving a substantial deposit. The contractor may face:
Explanation
Abandonment of a project without legal excuse is by itself a cause for disciplinary action under B&P §7107, so suspension or revocation is on the table; and a deposit taken for the work and spent elsewhere can be prosecuted under Penal Code §484b as diversion of construction funds, a misdemeanor at $2,350 or less and punishable more heavily above that. A fine that leaves the license untouched, a bare refund order, and a warning letter each stop short of the license discipline §7107 authorizes.
Law Reference: B&P Code §7107; Penal Code §484bThis 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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