Disputes over an alleged violation qualify for CSLB arbitration if which condition is true?

Disputes over an alleged violation qualify for CSLB arbitration if which condition is true?

• A. The license was suspended at the time of alleged violation.
• B. The license was in good standing at the time of alleged violation.
• C. The license was expired at the time of alleged violation.
• D. The license was revoked before the alleged violation.

Answer: (B)

The key point is that CSLB arbitration is available only when the contractor’s license is in good standing at the time of the alleged violation. “Good standing” means the license is active and current—fees paid, no suspensions, no revocations, and no other active disciplinary actions. When the license is in good standing, the CSLB has jurisdiction to handle the dispute through its arbitration program and the contractor is operating under an active license, which the board recognizes and can enforce. If the license is suspended, expired, or revoked, arbitration isn’t appropriate because the license isn’t active or enforceable at that moment. A suspended license isn’t allowed to perform work; an expired license isn’t valid; and a revoked license has been taken away. In those situations, the dispute would not proceed under CSLB arbitration. So the condition that makes arbitration applicable is the license being in good standing at the time of the alleged violation.

The key point is that CSLB arbitration is available only when the contractor’s license is in good standing at the time of the alleged violation. “Good standing” means the license is active and current—fees paid, no suspensions, no revocations, and no other active disciplinary actions. When the license is in good standing, the CSLB has jurisdiction to handle the dispute through its arbitration program and the contractor is operating under an active license, which the board recognizes and can enforce.

If the license is suspended, expired, or revoked, arbitration isn’t appropriate because the license isn’t active or enforceable at that moment. A suspended license isn’t allowed to perform work; an expired license isn’t valid; and a revoked license has been taken away. In those situations, the dispute would not proceed under CSLB arbitration.

So the condition that makes arbitration applicable is the license being in good standing at the time of the alleged violation.