California Contractors License Law Practice Exam

Is it lawful for a Responsible Managing Officer (RMO) of a corporation to contract as an individual with the corporate license?

1. Yes, it is lawful

2. No, it is unlawful

3. Only under certain conditions

4. Only if approved by the board

The correct answer is: No, it is unlawful

In California, the regulations governing contractor licensing specify that a Responsible Managing Officer (RMO) cannot contract as an individual using the corporate license. This prohibition is in place because the corporate license is intended to be held and utilized by the corporation as a business entity, rather than by individuals operating outside the corporate structure. The purpose of designating an RMO specifically relates to the requirement that the corporation maintains a qualified person to supervise and manage the contracted work, but contracting as an individual contradicts the licensing requirements that aim to ensure accountability and compliance with the law at the corporate level. Each entity, whether a corporation or partnership, must operate under its own license, maintaining a clear line of legal responsibility. Therefore, the option stating that it is unlawful for an RMO to contract individually using the corporate license accurately reflects these legal stipulations.