Louisiana Business and Law Questions and
Verified Answers
The purpose of the contractor licensing laws is to Correct Answer: Protect the public from fraudulent
contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-plex, or four-plex.
Correct Answer: Commercial project
A contractor is a person that works on a project valued at ______ or more for commercial purposes other
than residential duplexes, tri-plexes or four-plexes. Correct Answer: $50,000
A ___________ is the person who contracts directly with the owner. Correct Answer: General contractor
A contractor that works on a preexisting owner occupied building is considered a _________ . Correct
Answer: Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost exceeds _________.
Correct Answer: $75,000
The state licensing board is comprised of ____ members. Correct Answer: 15
The board has the power to do any of the following EXCEPT: Correct Answer: Sue unlicensed
contractors
Licenses and renewals expire on _______. Correct Answer: The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility including proof of net worth
of at least ______ . Correct Answer: $10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? Correct Answer: yes
When a qualifying party of a construction company leaves employment, the company has how many
days to inform the board? Correct Answer: 30 days
, A qualifying party can be which of the following: Correct Answer: A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not have to have a license
to do construction work. Correct Answer: True
If you fail to comply with the rules of the board, you are subject to revocation or suspension of your
license. Correct Answer: True
If you have been found guilty of violating the rules of the board more than twice in one year, you will
not be permitted to bid on a public project for up to ____ years Correct Answer: 3
If a license has been denied by the board, the applicant has ____ to appeal. Correct Answer: 6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to ________.
Correct Answer: $500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300, they can be fined up to
______ and possibly be imprisoned up to _____ . Correct Answer: $5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that contractor shall not be
permitted to apply for a license for ___________ . Correct Answer: 1 year
A residential contractor must provide all of the following EXCEPT: Correct Answer: Proof of five years
experience
A contractor who opts to place his license in an inactive status must still submit proof of insurance
coverage. Correct Answer: False
Residential contractors must pay a renewal fee of _____. Correct Answer: $100.00
Residential contractors must pay a license fee of _____. Correct Answer: $100.00
A home improvement project , in excess of _______ MUST have a written contract between the
contractor and the owner. Correct Answer: $7,500
Verified Answers
The purpose of the contractor licensing laws is to Correct Answer: Protect the public from fraudulent
contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-plex, or four-plex.
Correct Answer: Commercial project
A contractor is a person that works on a project valued at ______ or more for commercial purposes other
than residential duplexes, tri-plexes or four-plexes. Correct Answer: $50,000
A ___________ is the person who contracts directly with the owner. Correct Answer: General contractor
A contractor that works on a preexisting owner occupied building is considered a _________ . Correct
Answer: Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost exceeds _________.
Correct Answer: $75,000
The state licensing board is comprised of ____ members. Correct Answer: 15
The board has the power to do any of the following EXCEPT: Correct Answer: Sue unlicensed
contractors
Licenses and renewals expire on _______. Correct Answer: The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility including proof of net worth
of at least ______ . Correct Answer: $10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? Correct Answer: yes
When a qualifying party of a construction company leaves employment, the company has how many
days to inform the board? Correct Answer: 30 days
, A qualifying party can be which of the following: Correct Answer: A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not have to have a license
to do construction work. Correct Answer: True
If you fail to comply with the rules of the board, you are subject to revocation or suspension of your
license. Correct Answer: True
If you have been found guilty of violating the rules of the board more than twice in one year, you will
not be permitted to bid on a public project for up to ____ years Correct Answer: 3
If a license has been denied by the board, the applicant has ____ to appeal. Correct Answer: 6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to ________.
Correct Answer: $500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300, they can be fined up to
______ and possibly be imprisoned up to _____ . Correct Answer: $5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that contractor shall not be
permitted to apply for a license for ___________ . Correct Answer: 1 year
A residential contractor must provide all of the following EXCEPT: Correct Answer: Proof of five years
experience
A contractor who opts to place his license in an inactive status must still submit proof of insurance
coverage. Correct Answer: False
Residential contractors must pay a renewal fee of _____. Correct Answer: $100.00
Residential contractors must pay a license fee of _____. Correct Answer: $100.00
A home improvement project , in excess of _______ MUST have a written contract between the
contractor and the owner. Correct Answer: $7,500
