Business FinancesQuestion 1145 of 1605
The $25,000 contractor's license bond primarily protects:
a.The CSLB's operating budget
b.Consumers, employees, and certain others damaged by the contractor's violations
c.The contractor's suppliers exclusively
d.The contractor against customer nonpayment
Explanation
The contractor's bond secures the contractor's obligation to comply with the Contractors State License Law. It provides a source of recovery for consumers harmed by defective work or violations, for employees owed wages, and for certain furnishers of labor/materials. It does NOT protect the contractor.
Law Reference: Business & Professions Code §7071.6Practice 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)