Contracts & ExecutionQuestion 707 of 1605
Under a valid service and repair contract, when may the contractor collect payment from the homeowner?
a.No payment is due or collected until the work is completed
b.As a 50% deposit before starting
c.In weekly installments
d.A $200 down payment plus the balance later
Explanation
B&P §7159.10 requires that under a service and repair contract, no payment is due and none may be collected until the work is complete. Down payments are not permitted on these contracts.
Law Reference: B&P §7159.10Practice all 1605 questions free — no signup required.
Related questions on this topic
- 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:
- 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?
- What is the maximum contract amount for a job to qualify as a 'service and repair' contract under §7159.10?
- A contractor collects a $2,500 down payment on a $15,000 room addition. Why is this unlawful?
- An individual who is employed by a contractor and solicits, sells, or negotiates home improvement contracts is called a:
- Before soliciting home improvement contracts on behalf of a licensed contractor, a home improvement salesperson must:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)