California Contractors License Law 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What happens when a contractor's license lapses?

They may continue working until resolved

They must stop work immediately

When a contractor's license lapses, they must stop work immediately. In California, it is illegal for a contractor to perform work without a valid, active license. The licensing authority enforces this rule to protect consumers and maintain standards in the construction industry. A lapsed license indicates that the contractor is no longer authorized to operate, and continuing to work can result in significant legal ramifications, including fines and penalties.

The requirement to stop work immediately emphasizes the importance of compliance with licensing laws, ensuring both the contractor and consumer are safeguarded. Maintaining an active license is essential for a contractor's credibility and their ability to conduct business legally. This proactive measure alleviates risks associated with unlicensed work, such as substandard construction practices or consumer scams that can be detrimental to public safety.

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They can work under another contractor

Only civil penalties apply

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