Contracts & ExecutionQuestion 61 of 1605
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 §7191Practice all 1605 questions free — no signup required.
Related questions on this topic
- Which of the following MUST be included in a California home improvement contract?
- A contractor and homeowner agree to change the scope of work during a project. This agreement must be:
- A contractor may demand final payment from the homeowner:
- A contractor abandons a job without justification after receiving a substantial deposit. The contractor may face:
- Who is primarily responsible for obtaining building permits on a construction project?
- A contract clause that shifts responsibility for delays outside the contractor's control to the owner is called:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)