Utah Contractor Practice Exam

What is the penalty for contracting jobs with a suspended or revoked license?

1. Permanent revocation of license

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

3. $500 fines and cease-and-desist order

4. Temporary suspension of license only

The correct answer is: $500 fines and cease-and-desist order

The correct response regarding the penalty for contracting jobs with a suspended or revoked license includes the imposition of a $500 fine and a cease-and-desist order. This consequence serves both as a deterrent and as an enforcement tool to ensure compliance with licensing laws. When a contractor operates without an active license, they pose risks not just to themselves but also to consumers and the construction industry as a whole. The $500 fine reflects a regulatory approach that penalizes non-compliance without resorting to more extreme measures like permanent revocation or incarceration, which might be reserved for more severe violations or repeated offenses. A cease-and-desist order is significant because it formally requires the contractor to halt any ongoing work until they rectify their licensing status. This protects consumers from unlicensed and potentially unsafe or unqualified work, emphasizing the importance of maintaining valid licensing in the construction industry. Other options suggest harsher penalties or overly lenient consequences that do not align with the typical regulatory responses observed in these situations.