CSLB Contractor's Law & Business Practice Exam

If a contractor's active license is issued on January 18, 1995, when will it expire?

1. January 18, 1997

2. January 31, 1997

3. December 31, 1996

4. February 1, 1997

The correct answer is: January 31, 1997

A contractor's license typically has an expiration period that lasts for two years from the date of issuance. In this case, if the contractor's active license was issued on January 18, 1995, it would be valid until January 18, 1997. However, licenses often expire at the end of the month, specifically on the last day of the month in which the original expiration would have occurred. Therefore, while the two-year expiration would logically suggest January 18, 1997, the actual expiration date is pushed to the last day of that month—January 31, 1997. This ensures that contractors have a clear understanding of the expiration timeline and aligns with administrative practices related to licensing. The other choices do not align with this standard practice. Dates such as January 18, 1997, would not be correct as the effective date is adjusted to the end of the month. December 31, 1996, miscalculates the two-year period entirely. Likewise, February 1, 1997, falls outside the set expiration date, which confirms that the expiration aligns precisely with January 31, 1997.