In Small Claims Court, a contractor's claim may be dismissed if the contractor was not licensed during performance on a contract for $500 or more.

In Small Claims Court, a contractor's claim may be dismissed if the contractor was not licensed during performance on a contract for $500 or more.

• A. The contract value was under $1000
• B. The contractor is not bonded
• C. The contractor was not licensed during performance of a contract for $500 or more
• D. The work was not completed

Answer: (C)

California law requires contractors to be licensed to perform contracting work, and that licensure status during the time the work is done affects whether a claim can proceed in Small Claims Court. If a contract is for $500 or more and the contractor was not licensed while performing the work, the claim may be dismissed because the unlicensed work is not enforceable for that level of value. This protects homeowners and ensures that substantial projects are handled only by licensed professionals. The other factors—such as the contract value being under a different amount, lack of bonding, or whether the work was completed—do not by themselves trigger dismissal based on licensure; the critical issue is the contractor’s license status during performance on a $500-or-more contract.

California law requires contractors to be licensed to perform contracting work, and that licensure status during the time the work is done affects whether a claim can proceed in Small Claims Court. If a contract is for $500 or more and the contractor was not licensed while performing the work, the claim may be dismissed because the unlicensed work is not enforceable for that level of value. This protects homeowners and ensures that substantial projects are handled only by licensed professionals. The other factors—such as the contract value being under a different amount, lack of bonding, or whether the work was completed—do not by themselves trigger dismissal based on licensure; the critical issue is the contractor’s license status during performance on a $500-or-more contract.