Contracts & ExecutionQuestion 147 of 690

Which practice by a contractor on a home improvement contract is PROHIBITED?

a.Tying progress payments to completed phases of work
b.Listing the contractor's license number on the contract
c.Providing a written warranty to the homeowner
d.Demanding payment that substantially exceeds the value of work performed

Explanation

It is unlawful to demand or accept a payment that exceeds the value of the work performed and materials delivered. The other choices describe proper, lawful contracting practices.

Law Reference: Bus. & Prof. Code §7159.5

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