Asked by Irina Eriomov on Jul 06, 2024

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Sam,a plumber,entered into a contract for $75,000 with Orr,Inc. ,to perform certain plumbing services in a building owned by Orr.After Sam had satisfactorily performed the work,Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license.As a result,Orr refused to pay Sam.The licensing statute was enacted merely to raise revenue for the state.An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work.The cost of the materials that Sam supplied was worth $35,000.If Sam sues Orr,Sam will be entitled to recover:

A) nothing.
B) $35,000.
C) $70,000.
D) $75,000.

State Licensing Statute

Legislation enacted by a state that defines the requirements and standards for obtaining a professional license to legally work in a specific field within that state.

Fair Market Value

The estimated price at which an asset would trade in a competitive auction setting, reflecting its true market worth.

Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations.

  • Discern between licensing laws for regulation purposes and revenue-raising objectives, and examine their role in contract enforcement.
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ZK
Zybrea KnightJul 07, 2024
Final Answer :
D
Explanation :
Where a licensing statute was intended primarily as a revenue-raising measure-that is,as a means of collecting money rather than as a means of protecting the public-an agreement to pay a person for performing an act for which she is not licensed will generally be enforced.