Which statement about the CSLB license bond and a project performance bond is TRUE?
Explanation
The $25,000 bond required by B&P §7071.6 is a condition of licensure that runs to the beneficiaries listed in §7071.5 and stands behind everything the licensee does, in a fixed amount that has nothing to do with any contract's size. A performance bond is bought for one project, sized to that contract, and runs to that project's obligee, guaranteeing the job gets finished. (b) and (c) simply swap the two. (d) misses both differences that matter — the source, statute versus contract, and the scope, all work versus one job.
Law Reference: B&P Code §7071.5 / §7071.6This 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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