Contracts & ExecutionQuestion 705 of 1632
Which of these is a condition that must be met before a contractor may use a 'service and repair' contract form instead of a full home improvement contract?
a.The homeowner must be a senior citizen
b.The contractor must be paid in full in advance
c.The contract price must exceed $2,500
d.The buyer must have initiated contact requesting the work
Explanation
Under B&P §7159.10, a service and repair contract may be used only when, among other conditions, the buyer initiated contact to request the work and the price is $750 or less.
Law Reference: B&P §7159.10This 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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Related questions on this topic
- A contractor asks a homeowner to sign a home improvement contract that still has blank spaces for the price and scope of work. Under the CSLB law, this practice is:
- After a home improvement contract is signed, when must the contractor give the homeowner a copy?
- A change order that increases the price of a home improvement project by $3,000 is agreed to verbally on-site. To be enforceable under §7159, the change order must be:
- What is the maximum contract amount for a job to qualify as a 'service and repair' contract under §7159.10?
- Under a valid service and repair contract, when may the contractor collect payment from the homeowner?
- A contractor collects a $2,500 down payment on a $15,000 room addition. Why is this unlawful?
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)