Contracts & ExecutionQuestion 132 of 1632
On a $6,000 home improvement contract, what is the maximum allowable down payment?
a.$600
b.$1,000
c.$1,500
d.$3,000
Explanation
The down payment may not exceed $1,000 or 10% of the contract price, whichever is less. Ten percent of $6,000 is $600, which is less than $1,000, so $600 is the legal maximum.
Law Reference: Bus. & Prof. Code §7159.5This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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