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Licensing Statues

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Submitted By tmckee22
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Discuss licensing statutes and the effect they have on contracts made by an unlicensed person. Distinguish between regulatory licensing statutes and revenue raising licensing statutes. The answer is contained in Chapter 11.
A licensing statue requires that a person or company have a license from the government prior to engaging in their occupation or activity. All states have this requirement that applies to professions such as construction, engineers/ architects, hair dressers, CPA’s, doctors, nurses. The person or company applying for these licenses are required to show they have the proper schooling, experience and moral character. The licensee may also have to take a written examination before they are given this license.
At work one of my responsibilities is to ensure that we have the proper permits/licensing for each state we perform work in. I have recently renewed licenses in 5 different states and can attest that on all of the license applications they request the schooling, experience and moral character information for all owners of a company (along with a 100 hundred other requirements) For example on the license application to be a General Contractor in SC moral character questions include;
• Have you ever had a license, certification or registration cancelled, surrendered, revoked, suspended, restricted or disciplined by any federal, state or local authority or contracted without a proper license? If yes, attach explanation and give current disposition.
• Is any investigation or disciplinary action currently pending against you or an organization of which you are or were an officer, principal, qualifying party or major shareholder? If yes, attach explanation and give current disposition.
• Have you or an organization of which you are or were an officer, principal, qualifying party or major shareholder ever been issued a Cease and Desist Order for unauthorized practice? If yes, attach explanation and give current disposition.
• Have you ever been arrested, charged, indicted or convicted for violation of any federal, state or local law (other than a minor traffic violation)? If yes, attach explanation and give current disposition.
• Are you currently or have you ever been licensed or registered in any profession in any federal or state jurisdiction?
• Within the last 10 years, have you or any business entity of which you are or were an officer, principal, or major shareholder received any notice of any final judgments, liens or claims of any kind? If yes, attach explanation and give current disposition.

Regulatory licensing statues are to protect the public. For example, you would not want to hire a mechanical contractor to come in and install a fire suppression system without a license, how would you know to trust the work they did and that if you did have a fire if the sprinkler system would turn on? By them possessing a license shows they have the proper knowledge of mechanical systems to perform the work for you.
A revenue raising statue is used for the primary use or raising money for the government. The protection of the public is not a factor.

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