Contracts & ExecutionQuestion 657 of 1632

A contractor knocks on doors and signs a 42-year-old homeowner to a $9,000 home improvement contract at her kitchen table. Under Civil Code §1689.7, she may cancel:

a.Until midnight of the seventh business day after she receives a signed copy
b.Until midnight of the third business day after she receives a signed copy
c.Only until the contractor begins work at her property, by written notice
d.Until midnight of the fifth business day after she receives a signed copy

Explanation

Civil Code §1689.6(a)(2) gives the buyer of a home improvement contract written under B&P §7151.2 until midnight of the THIRD business day after receiving a signed and dated copy of the contract to cancel, and B&P §7159(e) requires the contract to carry a 'Three-Day Right to Cancel' notice plus a detachable Notice of Cancellation in duplicate, in the language of the sales presentation. Each distractor is a real California deadline attached to a different fact pattern. (a) Seven business days is the period for a contract to repair damage from a disaster for which a state of emergency has been declared — and, under §1689.6(b), for a personal emergency response unit. (d) Five business days is the extension §1689.6(a) gives senior citizens; this buyer is 42. (c) is the service-and-repair rule of §1689.6(a)(3) and B&P §7159.10, which applies only when the buyer initiated the call and the price is $750 or less.

Law Reference: Civil Code §1689.6-§1689.7; Bus. & Prof. Code §7159(e), §7159.10

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