Business & LicensingQuestion 1409 of 1605
An outstanding, unsatisfied final court judgment related to the construction business can affect a license how?
a.It has no effect
b.The license may be suspended until the judgment is satisfied or bonded, and must be reported
c.It increases the bond automatically to $1 million
d.It converts the license to inactive permanently
Explanation
Under B&P Code section 7071.17, licensees must notify the Registrar of unsatisfied final judgments related to their construction activities. Failure to resolve or bond the judgment can result in license suspension.
Law Reference: B&P Code §7071.17Practice all 1605 questions free — no signup required.
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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)