Business & LicensingQuestion 1364 of 1605
The $25,000 contractor's license bond primarily protects which of the following?
a.Homeowners and others damaged by the contractor's violation of the license law
b.Only the contractor's employees for unpaid wages
c.The contractor's suppliers exclusively
d.The CSLB's administrative budget
Explanation
Under B&P Code section 7071.6, the contractor's license bond is for the benefit of homeowners contracting for home improvement, property owners, and others damaged by the contractor's violation of the Contractors State License Law. It is not merely a wage bond.
Law Reference: B&P Code §7071.6Practice all 1605 questions free — no signup required.
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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)