Contracts & ExecutionQuestion 729 of 1632
On a $50,000 whole-house remodel, a contractor wants the largest lawful down payment. Without a joint control, that amount is:
a.$5,000
b.$1,000
c.$2,500
d.$500
Explanation
The cap is $1,000 or 10%, whichever is less. Ten percent of $50,000 is $5,000, but the $1,000 ceiling is lower, so the maximum lawful down payment is $1,000.
Law Reference: B&P §7159(d)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 →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- A contractor pre-prints the contract 'date' as the day AFTER the actual signing to shorten the buyer's cancellation window. This is:
- Which of the following must a home improvement contract include regarding the work to be done?
- A valid service and repair contract must still give the buyer:
- A home improvement contract is signed for $800. Does the written-contract requirement of §7159 apply?
- The three-day right to cancel a home improvement contract applies primarily to contracts that are:
- The 'Notice to Owner' that must accompany a home improvement contract primarily explains:
Last reviewed: · editorial process
PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)