A remodeler's printed contract for a single-family home carries an arbitration provision in the same 9-point type as the rest of the document, under the heading 'Dispute Resolution', with no separate space for the owner to initial. What does Bus. & Prof. Code §7191 make of it?
Explanation
Arbitration clauses are lawful in California. What §7191 polices is the presentation: on residential property of four or fewer units the provision must be clearly titled ARBITRATION OF DISPUTES, set in at least 10-point roman boldface in a printed contract, and separately initialed after the statutory notice. A provision that fails those requirements is not simply thrown out — subdivision (c) leaves it unenforceable against any person OTHER than the licensee, so the contractor is still bound by the clause it drafted.
Law Reference: Bus. & Prof. Code §7191(a), (c)This 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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