Contracts & ExecutionQuestion 137 of 690

If a home improvement contract contains a binding arbitration clause, California law requires that the clause be:

a.Printed in standard type and placed anywhere in the contract
b.In at least 10-point boldface type and separately signed or initialed by the buyer
c.Removed before the contract is signed
d.Approved in advance by an arbitrator

Explanation

An arbitration clause in a contract for residential work must appear in at least 10-point boldface type, contain prescribed disclosure language, and be separately initialed or signed by the consumer.

Law Reference: Bus. & Prof. Code §7191

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