Utah Contractor Practice Exam

What is a potential penalty for a contractor working with an inactive license?

1. Permanent revocation of license

2. Fine, one-year license suspension, and a minimum of six months in jail

3. Fine and/or license suspension for up to one year

4. Temporary suspension of license only

The correct answer is: Fine and/or license suspension for up to one year

A contractor operating with an inactive license could face a fine and/or a license suspension for a period up to one year. This potential penalty serves to uphold the standards and regulations within the contracting industry, ensuring that all contractors maintain active licenses, fulfill continuing education requirements, and comply with applicable laws. Such enforcement helps protect consumers and promotes a quality standard of service in the marketplace. In this situation, while a permanent revocation of a license or harsh penalties like jail time are serious concerns, they are reserved for more severe violations of law or repeated offenses. A temporary suspension alone does not adequately address the issue of operating with an inactive license, as it implies that the license could be restored without addressing the underlying issue of compliance. Hence, the fine and/or a suspension for up to one year strikes a balance between accountability and the opportunity for the contractor to rectify their licensing status.