What happens to a contractor's license if they are found guilty of fraud?

When a contractor is found guilty of fraud, it can have serious implications for their licensure. Specifically, the correct choice highlights that the contractor's license may be revoked or suspended as a consequence of their fraudulent actions. This aligns with the regulatory framework governing home improvement contractors, which is designed to protect consumers and maintain industry standards.

Fraud undermines the integrity of the contracting profession, and regulatory bodies recognize this by imposing significant penalties, including revocation or suspension of the contractor's license. Such actions serve as a deterrent to unethical behavior and encourage compliance with laws and ethical practices.

Other outcomes, like the license remaining unaffected, receiving just a warning, or being upgraded are not reflective of the serious consequences that fraud entails within the industry. These outcomes would fail to uphold the necessary standards for consumer protection and may allow bad practices to go unchecked, which is contrary to the objectives of licensing and regulation in the field of home improvement.