On a residential swimming pool contract, what is the maximum down payment a contractor may receive before work begins?
Explanation
Bus. & Prof. Code §7159.5 establishes special, stricter rules for residential swimming pool contracts: the down payment cannot exceed $200, and the balance must be paid in milestone-based progress payments matching the actual stages of pool construction (e.g., excavation, steel, plumbing, gunite, decking, plaster). The $1,000/10% rule in option A applies to general home improvement under §7159 — pools have their own tighter rule. The 20% and $5,000 options would violate consumer-protection requirements and are common CSLB discipline triggers.
Law Reference: Bus. & Prof. Code §7159.5This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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