Contracts & ExecutionQuestion 61 of 163245% of test-takers get this one wrong

Which statement about arbitration clauses in construction contracts is TRUE?

a.They are illegal in California
b.They can be included but must be clear and conspicuous
c.They are required in all home improvement contracts
d.They automatically waive the right to a jury trial in all cases

Explanation

Arbitration clauses are permitted in construction contracts but must be clearly disclosed, written in at least 10-point boldface type in home improvement contracts, and separately initialed by the homeowner.

Law Reference: Bus. & Prof. Code §7191

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