Business & LicensingQuestion 1378 of 1605

Under the disgorgement provision of the license law, a customer who hired an unlicensed contractor may do what?

a.Only withhold future payments
b.Recover (get back) all compensation already paid to the unlicensed contractor
c.Nothing, once work is complete
d.Recover only amounts over $1,000

Explanation

Under B&P Code section 7031(b), a person who used the services of an unlicensed contractor may bring an action to recover all compensation paid for the unlicensed work, even if the work was performed competently.

Law Reference: B&P Code §7031

Practice all 1605 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
Report