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NC General Contractor practice questions

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Question 1General contracting licensing law and regulations

Under North Carolina law, which body issues general contractor licenses and administers the licensing examination?

  1. The North Carolina Department of Transportation
  2. The North Carolina Licensing Board for General Contractors Correct answer.
  3. The Office of the State Fire Marshal
  4. The North Carolina Real Estate Commission

Explanation

The North Carolina Licensing Board for General Contractors is the state agency created to examine and license general contractors. It sets qualification standards and enforces the licensing statute. Other agencies regulate different professions or areas of construction safety.

Question 2General contracting licensing law and regulations

A person who holds a North Carolina general contractor license is generally authorized to perform which of the following?

  1. Engineering design services for structural systems
  2. Work limited to a single county where the license was issued
  3. Only work on projects valued above one million dollars
  4. Construction work on any project without a value limitation Correct answer.

Explanation

A general contractor license in North Carolina is not limited by project value or by county. Once licensed, the contractor may bid and contract for general construction work throughout the state. Engineering and design services fall under separate professional licensing.

Question 3General contracting licensing law and regulations

Which type of North Carolina general contractor license limits the holder to projects of one hundred fifty thousand dollars or less?

  1. Provisional license
  2. Limited license Correct answer.
  3. Intermediate license
  4. Unlimited license

Explanation

North Carolina recognizes three license categories: limited, intermediate, and unlimited. The limited license caps the contractor at projects of one hundred fifty thousand dollars or less. The intermediate and unlimited licenses carry higher or no value ceilings.

Question 4General contracting licensing law and regulations

A general contractor license applicant must demonstrate a minimum amount of experience in the construction industry. Which statement best describes that requirement?

  1. At least ten years of continuous supervisory experience
  2. At least two years of experience in the construction business Correct answer.
  3. No experience is required if the applicant passes the exam
  4. Experience is required only for the unlimited license class

Explanation

Applicants must show a minimum period of experience in the construction business, generally two years, to qualify for examination. The experience requirement applies across license classifications. Passing the exam alone does not substitute for the experience qualification.

Question 5General contracting licensing law and regulations

What is the general rule regarding a licensed general contractor subcontracting work to an unlicensed contractor in North Carolina?

  1. It is permitted if the licensed contractor supervises the work daily
  2. It is permitted as long as the subcontract value is under fifty thousand dollars
  3. It is permitted for residential projects only
  4. It is prohibited, and the licensed contractor may face disciplinary action Correct answer.

Explanation

Licensed contractors may not knowingly subcontract regulated construction work to unlicensed persons. Doing so can subject the licensee to disciplinary action by the Board. The prohibition is not tied to a dollar threshold or to residential versus commercial work.

Question 6General contracting licensing law and regulations

Which of the following is a typical ground on which the North Carolina Licensing Board for General Contractors may discipline a licensee?

  1. Hiring an employee who later resigns
  2. Committing fraud in obtaining the license Correct answer.
  3. Failing to maintain a current business telephone listing
  4. Declining to bid on a public project

Explanation

Obtaining a license through fraud or misrepresentation is a statutory ground for discipline. The Board may suspend, revoke, or otherwise sanction a license for such conduct. Ordinary business decisions like declining to bid or employee turnover are not disciplinary grounds.

Question 7General contracting licensing law and regulations

What is the primary purpose of requiring general contractors to be licensed in North Carolina?

  1. To set uniform pricing for construction services
  2. To guarantee that every project is profitable
  3. To limit competition among builders
  4. To protect the public health, safety, and welfare Correct answer.

Explanation

Occupational licensing statutes are enacted under the police power to safeguard the public. The general contractor licensing law aims to protect health, safety, and welfare by ensuring qualified builders. It is not intended to control prices or restrict competition.

Question 8General contracting licensing law and regulations

A general contractor license in North Carolina is issued for a defined term. What is the standard license period before renewal is required?

  1. One year Correct answer.
  2. Ten years
  3. Two years
  4. Five years

Explanation

North Carolina general contractor licenses are issued on an annual basis and must be renewed each year. Renewal requires payment of the required fee and continued compliance with licensing requirements. Longer intervals do not match the statutory renewal cycle.

Question 9General contracting licensing law and regulations

A contractor holds a limited license but is offered a project valued at two hundred thousand dollars. What is the contractor's most appropriate course of action?

  1. Accept the project and subcontract half of the value to another firm
  2. Decline the project unless the license is upgraded to a higher classification Correct answer.
  3. Accept the project and pay the difference in fees to the Board
  4. Accept the project because the limit applies only to labor costs

Explanation

A limited license restricts the holder to projects of one hundred fifty thousand dollars or less. Bidding or contracting above that ceiling would exceed the license authority. The contractor should decline or first obtain an intermediate or unlimited license.

Question 10General contracting licensing law and regulations

An applicant for a general contractor license must provide which type of financial information to the Board?

  1. Proof of a surety bond equal to the license limit
  2. A certified audit by a public accounting firm
  3. A personal credit score above seven hundred fifty
  4. A statement of financial condition demonstrating minimum working capital or net worth Correct answer.

Explanation

The Board requires applicants to submit financial statements showing they meet minimum working capital or net worth requirements. This helps ensure the contractor can meet obligations to owners, suppliers, and employees. A full certified audit and a credit score threshold are not the standard requirement.

Question 11General contracting licensing law and regulations

A licensed contractor is convicted of a crime involving fraud related to a construction contract. What action may the Board take?

  1. Disciplinary action, including suspension or revocation of the license Correct answer.
  2. Automatic license renewal because the license was already issued
  3. A mandatory reduction to a limited license for one year
  4. No action, because criminal matters are handled only by courts

Explanation

Conviction for fraud or similar offenses connected to contracting is a ground for discipline. The Board may suspend, revoke, or impose other sanctions after notice and hearing. Criminal prosecution and licensing discipline are separate tracks that can both proceed.

Question 12General contracting licensing law and regulations

Before the Board may revoke a contractor's license for misconduct, what procedural protection is generally required?

  1. A vote by the contractor's trade association
  2. A waiting period of at least five years
  3. Approval by the local building inspector
  4. Notice of the charges and an opportunity for a hearing Correct answer.

Explanation

Due process requires that a licensee receive notice of the allegations and a meaningful opportunity to be heard before sanctions are imposed. The Board conducts contested case hearings under state administrative procedure. Trade association votes and inspector approvals play no role in the process.

Question 13General contracting licensing law and regulations

A contractor's license is placed on probation with conditions. What does probation typically mean in this context?

  1. The license converts automatically to an unlimited license
  2. The contractor may continue working without any reporting requirements
  3. The license remains valid but the contractor must satisfy specified conditions and oversight Correct answer.
  4. The license is fully suspended until the contractor reapplies

Explanation

Probation allows the contractor to keep working while under conditions imposed by the Board, such as reporting or corrective action. It is a lesser sanction than outright revocation or suspension. Compliance is monitored, and violations can lead to harsher discipline.

Question 14General contracting licensing law and regulations

Which statement best describes the relationship between a general contractor license and building permits in North Carolina?

  1. A building permit may only be issued to a properly licensed contractor for regulated work Correct answer.
  2. A licensed contractor never needs a building permit
  3. Building permits are issued only to property owners, never contractors
  4. A building permit guarantees the contractor is licensed

Explanation

Local permitting authorities generally require that regulated construction work be performed by a licensed contractor, and permits are issued consistent with licensing law. A permit itself is not proof of licensure, and licensed contractors still must obtain permits.

Question 15General contracting licensing law and regulations

A contractor allows its license to lapse by failing to renew. What is the effect on the contractor's ability to contract for new construction work?

  1. The contractor may work only on projects under twenty-five thousand dollars
  2. The contractor may continue working if the owner signs a waiver
  3. The contractor may continue bidding because the license remains valid for one extra year
  4. The contractor may not lawfully contract for regulated work until the license is reinstated Correct answer.

Explanation

Practicing without a current license is unlawful for regulated construction work. A lapsed license must be reinstated, often with additional requirements, before the contractor may lawfully contract. There is no grace year or owner waiver that restores the right to contract.

Question 16General contracting licensing law and regulations

A contractor is asked to sign a contract containing a clause requiring arbitration of all disputes. What is the general legal effect of such a clause in North Carolina?

  1. It is unenforceable because construction disputes must go to court
  2. It applies only to disputes involving the licensing Board
  3. It is enforceable and generally requires the parties to arbitrate covered disputes Correct answer.
  4. It is valid only if the contract value exceeds one million dollars

Explanation

North Carolina recognizes arbitration agreements as generally valid and enforceable for construction disputes. A properly drafted clause obligates the parties to resolve covered disputes through arbitration rather than litigation. Dollar thresholds and Board proceedings do not govern the clause's validity.

Question 17General contracting licensing law and regulations

What is the primary role of the licensing examination for general contractors in North Carolina?

  1. To verify that the applicant can read blueprints without assistance
  2. To certify the applicant's creditworthiness
  3. To assess knowledge of business, law, and construction competence needed to practice Correct answer.
  4. To rank applicants for public project awards

Explanation

The licensing exam tests the applicant's knowledge of business practices, contract law, and construction competence. Passing it demonstrates minimum qualifications to practice as a general contractor. It does not rank bidders or evaluate credit.

Question 18General contracting licensing law and regulations

A contractor's license is revoked by the Board. Under what circumstances may the contractor apply for a new license?

  1. Never, because revocation is permanent by statute
  2. Only after satisfying the Board's reinstatement requirements and any waiting period Correct answer.
  3. Immediately, with no conditions
  4. Only after the former clients consent in writing

Explanation

A revoked license is not automatically restored. The contractor must meet the Board's reinstatement requirements, which may include a waiting period and proof of corrected conduct. Client consent does not substitute for Board approval.

Question 19General contracting licensing law and regulations

Which of the following best describes the Board's authority over the conduct of licensed general contractors?

  1. It may regulate only the contractor's technical workmanship
  2. It may set the wages paid to construction workers
  3. It may investigate complaints and impose discipline for violations of the licensing law Correct answer.
  4. It may require contractors to join a trade union

Explanation

The Board has authority to investigate complaints and discipline licensees for violations of the licensing statute and Board rules. Its jurisdiction covers conduct connected to contracting practice. It does not set wages or mandate union membership.

Question 20General contracting licensing law and regulations

A contractor submits a bid and later discovers that the project exceeds the value allowed under its license class. What is the most prudent action?

  1. Proceed and request a variance from the building inspector
  2. Proceed because the bid was submitted in good faith
  3. Withdraw or decline the project until the license classification is raised Correct answer.
  4. Proceed because the owner is responsible for verifying the license

Explanation

Contracting beyond the value ceiling of a license class violates the licensing law regardless of good faith. The contractor should decline or first obtain an upgraded license. Building inspectors do not grant variances to license limits.

Question 21General contracting licensing law and regulations

A contractor is accused of abandoning a project without justification. How does the Board most likely treat such conduct?

  1. It is excused if the contractor had another project to start
  2. It may constitute a ground for disciplinary action by the Board Correct answer.
  3. It is a private matter between owner and contractor only
  4. It requires a court conviction before the Board may act

Explanation

Abandonment of a construction project without justification can be a disciplinary ground under the licensing law. The Board may investigate and impose sanctions independently of any court proceeding. A separate project commitment does not excuse abandonment.

Question 22General contracting licensing law and regulations

A contractor operates through a business entity rather than as an individual. What does North Carolina licensing law generally require in that situation?

  1. Every employee of the entity must hold an individual license
  2. No license is required because the entity is not a natural person
  3. The entity must designate a qualifying individual who holds the license Correct answer.
  4. The entity must be licensed only if it has more than ten employees

Explanation

When a business entity seeks a contractor license, it must designate a qualifying individual who meets the licensing requirements. The entity's license depends on that qualifier's credentials and good standing. Individual licenses for every employee and employee-count thresholds are not the rule.

Question 23General contracting licensing law and regulations

A contractor's qualifying individual leaves the company. What is the likely consequence for the firm's license?

  1. The license remains fully valid indefinitely
  2. The license is unaffected because the firm owns it
  3. The license automatically converts to an unlimited license
  4. The firm must promptly address the loss of the qualifier to maintain license validity Correct answer.

Explanation

A business entity's license depends on its designated qualifier. If that individual leaves, the firm must notify the Board and secure a replacement qualifier to keep the license in good standing. The license does not remain valid indefinitely without a qualifier.

Question 24General contracting licensing law and regulations

A contractor believes the Board imposed an excessive penalty after a hearing. What is the contractor's typical avenue for relief?

  1. Requesting that a competing contractor appeal on its behalf
  2. Ignoring the penalty because it is unenforceable
  3. Filing a petition for judicial review of the Board's final decision Correct answer.
  4. Asking the local building inspector to overturn the penalty

Explanation

A licensee aggrieved by a final agency decision may seek judicial review under the state administrative procedure act. This allows a court to examine whether the decision was supported and lawful. Local inspectors cannot overturn Board penalties, and ignoring an order invites further sanctions.

Question 25General contracting licensing law and regulations

A contractor is hired to perform work that falls within a specialty trade requiring separate licensing. What is the contractor's best practice under North Carolina licensing rules?

  1. Perform the work personally to avoid the specialty licensing requirement
  2. Assume the general contractor license covers all specialty trades
  3. Verify that the person performing the specialty work holds the required license Correct answer.
  4. Delegate responsibility for licensing to the property owner

Explanation

Specialty trades may require their own licenses, and a general contractor license does not automatically cover them. The contractor should confirm that the specialty work is performed by a properly licensed party. Performing the work personally or shifting responsibility to the owner does not satisfy the requirement.

Question 26General contracting licensing law and regulations

In North Carolina, which body administers the general contractor licensing examination and issues general contractor licenses?

  1. The North Carolina Real Estate Commission
  2. The North Carolina Department of Insurance
  3. The North Carolina Licensing Board for General Contractors Correct answer.
  4. The North Carolina Department of Transportation

Explanation

The North Carolina Licensing Board for General Contractors is the state agency that examines applicants and issues general contractor licenses. Other commissions named regulate different professions or activities.

Question 27General contracting licensing law and regulations

A general contractor license in North Carolina is issued in which of the following categories?

  1. Residential, commercial, and industrial
  2. Intermediate, advanced, and master
  3. Limited, intermediate, and unlimited Correct answer.
  4. Class A, Class B, and Class C

Explanation

North Carolina issues general contractor licenses in limited, intermediate, and unlimited categories, each tied to a maximum project value. The categories are defined by monetary limits rather than by building type.

Question 28General contracting licensing law and regulations

Which of the following is generally required of an applicant for an initial North Carolina general contractor license?

  1. A minimum of ten years of construction experience
  2. Membership in a statewide trade association
  3. Passing the licensing examination and meeting experience requirements Correct answer.
  4. A surety bond equal to the license limit

Explanation

Applicants must satisfy the Board's examination and experience requirements before a license is issued. Trade association membership and a bond at the license limit are not conditions of initial licensure.

Question 29General contracting licensing law and regulations

A North Carolina general contractor license is generally renewed on what cycle?

  1. Every year
  2. Every two years
  3. Every three years Correct answer.
  4. Every five years

Explanation

General contractor licenses in North Carolina are renewed on a three-year cycle. Renewal requires the appropriate fee and any continuing education the Board requires.

Question 30General contracting licensing law and regulations

A licensed general contractor wants to perform work on a project whose value exceeds the limit of its current license category. What is the proper course of action?

  1. Obtain a license in a higher category before contracting for the work Correct answer.
  2. Proceed because a license of any category permits all work
  3. Ask the owner to split the project into smaller contracts
  4. Rely on a subcontractor's unlimited license to cover the project

Explanation

Each license category carries a maximum project value, and a contractor may not contract for work above that limit. The contractor must qualify for and obtain a higher license category first.

Question 31General contracting licensing law and regulations

Which of the following best describes the role of the Board's qualifying party requirement for a business entity?

  1. The entity must maintain a physical office in every county where it works
  2. The entity must designate an individual who meets the Board's qualification standards Correct answer.
  3. The entity must employ at least one engineer
  4. The entity must have an owner who lives in North Carolina

Explanation

A business entity must have a designated individual, often called the qualifying party, who satisfies the Board's examination and experience standards. That individual is the basis for the entity's licensure.

Question 32General contracting licensing law and regulations

What is the general effect of holding a valid North Carolina general contractor license on a contractor's ability to enforce a construction contract?

  1. An unlicensed contractor may not bring an action to enforce the contract Correct answer.
  2. The license guarantees the contract cannot be disputed
  3. The license transfers enforcement authority to the Board
  4. The license has no effect on contract enforceability

Explanation

North Carolina law bars an unlicensed contractor from bringing an action to enforce a construction contract for which a license was required. Holding a valid license preserves the contractor's ability to sue on the contract.

Question 33General contracting licensing law and regulations

Which of the following is a recognized basis for disciplinary action by the North Carolina Licensing Board for General Contractors?

  1. Refusing to join a trade union
  2. Willful violation of the building code on a licensed project Correct answer.
  3. Charging prices that are higher than competitors
  4. Advertising in local newspapers

Explanation

The Board may discipline a licensee for conduct such as willful building code violations, fraud, or abandonment. Pricing, union membership, and ordinary advertising are not grounds for discipline.

Question 34General contracting licensing law and regulations

A contractor's license is suspended for six months after a Board hearing. What does suspension mean during that period?

  1. The contractor is barred from acting as a general contractor Correct answer.
  2. The contractor may work if a licensed partner supervises
  3. The contractor may continue working while an appeal is filed
  4. The contractor may work only on residential projects

Explanation

A suspension removes the contractor's authority to act as a licensed general contractor for the stated period. Working during a suspension can itself lead to further discipline.

Question 35General contracting licensing law and regulations

A contractor receives a notice of hearing from the Board alleging misconduct. What is the contractor entitled to at that hearing?

  1. Automatic reinstatement if the contractor denies the charges
  2. A jury trial before the Board
  3. A closed proceeding with no record
  4. Notice of the charges and an opportunity to present evidence Correct answer.

Explanation

Due process requires that the licensee receive notice of the allegations and an opportunity to be heard and present evidence. The Board's hearings are administrative rather than jury trials.

Question 36General contracting licensing law and regulations

A contractor licensed as an individual dies. What generally happens to the license?

  1. It converts to an unlimited license held by the estate
  2. It may be continued only under limited statutory provisions for completing work Correct answer.
  3. It continues indefinitely for the benefit of the estate
  4. It automatically transfers to the contractor's largest client

Explanation

A license is personal to the licensee and generally does not survive indefinitely, though limited provisions may allow completion of existing work. The license does not convert to a different category or transfer to a client.

Question 37General contracting licensing law and regulations

A contractor's license lapsed for nonrenewal two years ago, and the contractor now wants to resume contracting. What is generally required?

  1. Reinstatement or reapplication under the Board's rules, including any required fees and qualifications Correct answer.
  2. Only a written notice to the Board
  3. A new license examination is always required regardless of Board rules
  4. Nothing, because the license revives automatically upon payment of the fee

Explanation

A lapsed license does not revive automatically; the contractor must follow the Board's reinstatement or reapplication process. That process may involve fees, updated information, and any qualifications the Board requires.

Question 38General contracting licensing law and regulations

A contractor is disciplined for abandoning a project without justification. Which factor is most relevant to the Board's assessment of the violation?

  1. Whether the project was publicly advertised
  2. Whether the owner obtained a construction loan
  3. Whether the abandonment was willful and without good cause Correct answer.
  4. Whether the contractor used union labor

Explanation

Abandonment is a disciplinary matter when it is willful and without justification. The Board focuses on the contractor's conduct and the reasons for leaving the work, not on financing or advertising details.

Question 39General contracting licensing law and regulations

A contractor licensed as a business entity loses the individual who qualified the license. What must the entity generally do?

  1. Convert the license to an individual license automatically
  2. Continue operating permanently using the departed individual's name
  3. Transfer the license to a subcontractor
  4. Notify the Board and obtain a new qualifying party within the time allowed Correct answer.

Explanation

A business entity's license depends on a qualified individual. When that individual leaves, the entity must notify the Board and secure a replacement within the period the Board allows to keep the license in good standing.

Question 40General contracting licensing law and regulations

A contractor disagrees with the Board's final decision after an administrative hearing. What is the typical avenue for review?

  1. Filing a complaint with the local building inspector
  2. Requesting a new hearing before a different Board panel
  3. Filing a petition for judicial review in the appropriate court Correct answer.
  4. Submitting a written objection to the Board's executive director

Explanation

Final agency decisions are generally reviewed through judicial review in the courts under the state's administrative procedure law. Internal requests or complaints to other officials do not substitute for that review.

Question 41General contracting licensing law and regulations

A contractor is offered work that falls within a specialty trade that North Carolina requires to be separately licensed. What should the contractor do?

  1. Ask the owner to sign a waiver of specialty licensing
  2. Ensure the specialty work is performed by an appropriately licensed specialty contractor or obtain the required specialty license Correct answer.
  3. Perform the work and note it on the next license renewal
  4. Perform the work because a general contractor license covers every trade

Explanation

A general contractor license does not authorize work reserved to separately licensed specialty trades. The specialty work must be performed by a properly licensed specialty contractor or the general contractor must obtain that specialty license.

Question 42General contracting licensing law and regulations

Which of the following best describes the Board's continuing education requirement for licensed general contractors?

  1. Only unlimited licensees must complete continuing education
  2. Continuing education is required only after a disciplinary action
  3. Completion of Board-approved continuing education hours is required for renewal Correct answer.
  4. There is no continuing education requirement for any licensee

Explanation

The Board requires licensees to complete approved continuing education as a condition of renewal. The requirement applies broadly to licensees rather than only to one category or to disciplined contractors.

Question 43General contracting licensing law and regulations

A contractor submits a bid for a project valued above its license limit and the bid is accepted. What is the legal position of the contractor?

  1. The contract is valid because the bid was accepted in writing
  2. The contractor is acting outside its licensed authority and may face discipline and loss of enforcement rights Correct answer.
  3. The contractor may perform the work if it hires an unlimited licensee
  4. The contractor may perform the work if the owner agrees to pay a higher fee

Explanation

Contracting for work above the license limit exceeds the contractor's authority under North Carolina law. The contractor risks disciplinary action and may be unable to enforce the contract.

Question 44General contracting licensing law and regulations

What information does the Board generally require an applicant to disclose about prior disciplinary or criminal history?

  1. Any prior disciplinary actions and relevant criminal convictions as asked on the application Correct answer.
  2. Only felonies committed in North Carolina
  3. Nothing, because the Board conducts its own investigation without applicant input
  4. Only actions taken by other state licensing boards

Explanation

Applications require disclosure of prior disciplinary actions and relevant criminal history so the Board can evaluate an applicant's fitness. Omitting required information can itself be grounds for denial or discipline.

Question 45General contracting licensing law and regulations

A contractor allows its license to expire and continues to advertise and contract for general contracting work. What is the most likely consequence?

  1. The contractor may continue until the next renewal cycle
  2. The contractor is liable only for the renewal fee
  3. The contractor is protected because the work began before expiration
  4. The contractor is treated as unlicensed and subject to penalties and discipline Correct answer.

Explanation

Practicing without a current license is unlicensed contracting, which exposes the contractor to penalties and disciplinary action. Work begun earlier does not authorize continued contracting after expiration.

Question 46General contracting licensing law and regulations

A contractor is accused of misrepresenting the scope of its license to induce an owner to sign a contract. How is such conduct characterized under North Carolina licensing law?

  1. A permissible sales practice
  2. A private matter between the parties only
  3. Grounds for discipline as fraudulent or deceptive conduct Correct answer.
  4. An issue solely for the Better Business Bureau

Explanation

Misrepresenting licensure to obtain work is fraudulent or deceptive conduct and is a basis for Board discipline. It is not merely a private dispute or a permissible sales tactic.

Question 47General contracting licensing law and regulations

When the Board issues a citation or notice of violation, what is the contractor generally given the opportunity to do?

  1. Request a hearing to contest the allegations Correct answer.
  2. Appeal directly to the governor
  3. Ignore it if the contractor disagrees
  4. Pay a fine to close the matter without any record

Explanation

A contractor who receives a citation or notice may contest it by requesting a hearing before the Board. Ignoring the notice or attempting to pay it away does not preserve the contractor's rights.

Question 48General contracting licensing law and regulations

A contractor performs work without a required license and later seeks payment from the owner in court. How does North Carolina law generally treat the contractor's claim?

  1. The contractor may recover by assigning the claim to a licensed entity
  2. The contractor may recover only if the owner was satisfied with the work
  3. The contractor is barred from bringing the action, though limited recovery theories may exist Correct answer.
  4. The contractor may recover the full contract price regardless of licensure

Explanation

An unlicensed contractor is generally barred from bringing an action to enforce the construction contract. Some limited theories, such as unjust enrichment, may be available in narrow circumstances, but the contract claim itself is barred.

Question 49General contracting licensing law and regulations

A contractor's license is revoked, and the contractor wants to work again in the future. Which statement best reflects the general approach under North Carolina law?

  1. The contractor may work as a general contractor if a licensed friend signs contracts
  2. The contractor may resume work immediately by paying the renewal fee
  3. The contractor may reapply after the period set by the Board and must satisfy current requirements Correct answer.
  4. Revocation is permanent with no possibility of relicensure

Explanation

Revocation is not necessarily permanent; a contractor may apply for a new license after the period the Board specifies and must meet the requirements then in effect. Immediate resumption or using another person's license is not permitted.

Question 50General contracting licensing law and regulations

A contractor holds an unlimited license and wants to bid on a project that includes both general construction and a separately licensed specialty trade. Which arrangement best complies with North Carolina licensing law?

  1. The contractor may self-perform if it notifies the Board after the work begins
  2. The contractor may self-perform if the owner signs a release of liability
  3. The contractor must ensure the specialty work is performed by a holder of the required specialty license Correct answer.
  4. The contractor may self-perform the specialty work because its license is unlimited

Explanation

An unlimited general contractor license does not authorize work reserved to separately licensed specialty trades. The specialty portion must be performed by a contractor holding the required specialty license.