Business Practices, Law, and Consumer Protection
Who regulates what
Licensing questions reward knowing the regulator. In North Carolina, the Board of Cosmetic Art Examiners licenses estheticians and writes the sanitation and scope-of-practice rules that inspectors enforce, and the exam tests those rules directly. Scope of practice limits you to cosmetic care of the skin: cleansing, exfoliating, treating, waxing, makeup and lash services, and approved devices. You may not diagnose, prescribe, inject, or perform medical procedures; working outside scope invites license discipline and civil liability.
Legal vocabulary
Know negligence (duty, breach, causation, damages), informed consent, and expressed versus implied contracts. Distinguish the FDA (products, devices, truthful labeling) from the FTC (advertising claims). Keep records as board rules require; they are your defense in a claim. Protect client confidentiality and store forms securely.
Business fundamentals
Expect questions on sole proprietorship versus LLC versus booth rental - who holds the license, who pays taxes, who sets prices, who carries insurance. Know that liability insurance, sales tax on retail, deposit and cancellation policies, and the difference between gross and net income all affect the bottom line. Marketing must be truthful: claiming a service "cures acne" or "removes scars" is a medical claim and a compliance problem.
Traps and a rule of thumb
Traps: assuming a booth renter is an employee, quoting a price without disclosing fees, believing a signed consent form waives all liability, and making outcome guarantees in reviews or social posts. Rule of thumb: if you would not want the sentence read aloud to a board inspector or a plaintiff's attorney, do not put it on a chart, a review, or a social post.