Contracts & ExecutionQuestion 201 of 1632

A homeowner signs a home improvement contract at the contractor's place of business after visiting the showroom. Which statement is most accurate?

a.The three-day home solicitation cancellation notice is required
b.The required home improvement contract terms still apply
c.No written contract is needed for a sale at a business office
d.The $1,000 down payment cap does not apply at a showroom sale

Explanation

What B&P §7159 requires inside a home improvement contract does not depend on where it is signed: a job over $500 needs the same signed writing sold in a kitchen or in a showroom, and the §7159.5(a)(3) down payment cap of $1,000 or 10% of the price, whichever is less, applies the same way. What does depend on the setting is the cancellation notice - §7159 excuses the Three-Day Right to Cancel notice where the contract is negotiated at the contractor's place of business, because those three business days come from the home solicitation rules of Civil Code §1689.5 and §1689.6, which reach contracts made away from the seller's trade premises.

Law Reference: Bus. & Prof. Code §7159; §7159.5(a)(3); Civil Code §1689.5, §1689.6(a)(2)

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