A . State and local governments require licenses for certain businesses and professional activities. Explain the difference between a regulatory licensing statute and a licensing statute enacted to raise revenue. b. Explain the significance in contract law between a regulatory license and a revenue raising license. c. Give an example of each type of licensing statute

Answer 1

a . A regulatory licensing statute is enacted to protect the public against unqualified persons. A revenue-raising statute does not seek to provide protection against the unqualified but is enacted merely to collect a licensing fee as revenue.
b. In the case of a regulatory license, an unlicensed person may not collect for his or her services. In the case of a revenue-raising license, an unlicensed person may collect for his or her services.
c. Regulatory: Doctors, lawyers, CPA's and other professionals who must prove their competency based on established criteria of education and/or examinations. Revenue-raising: Individuals and businesses who merely complete a form and pay a fee to obtain a license, such as a bartender or a salesperson who need not pass a competency exam.