Contracts & ExecutionQuestion 543 of 690
A residential construction contract over $500 contains a mandatory arbitration clause. Under B&P §7191, that clause must:
a.Be located in the signature section only
b.Appear in at least 8-point bold, capitalized type, with a separately initialed disclosure that the owner is waiving the right to a jury trial
c.Be approved by the CSLB before use
d.Be void in all residential contracts
Explanation
B&P §7191 requires that arbitration clauses in residential construction contracts include a specific disclosure in at least 8-point bold capital type, and that the owner separately initial the provision to waive the right to jury trial.
Law Reference: Bus. & Prof. Code §7191Practice all 690 questions free — no signup required.
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