Contracts & ExecutionQuestion 694 of 1632
A home improvement contract has a total price of $6,000. What is the maximum down payment the contractor may lawfully require?
a.$1,200
b.$1,500
c.$1,000
d.$600
Explanation
Under B&P §7159, the down payment on a home improvement contract may not exceed $1,000 or 10% of the contract price, whichever is less. Ten percent of $6,000 is $600, which is less than $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 →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)