Contracts & ExecutionQuestion 742 of 1605
The down payment and progress payment limits in §7159 are designed primarily to:
a.Protect the homeowner from paying for work not yet done
b.Increase the contractor's cash flow
c.Guarantee the contractor's profit
d.Reduce the CSLB's workload
Explanation
The payment restrictions in B&P §7159 protect homeowners by ensuring they do not pay substantially ahead of the work actually completed, reducing loss if a contractor abandons the job.
Law Reference: B&P §7159Practice all 1605 questions free — no signup required.
Related questions on this topic
- Which of the following must appear near the buyer's signature line as a required caution in a home improvement contract?
- For a service and repair contract, the buyer must receive a fully completed copy:
- A contractor completes 40% of a $20,000 job. Under §7159, the maximum he may have collected by that point (excluding a lawful down payment) is generally:
- A home improvement contract must identify the parties. This means it must include:
- Even for an emergency repair that the homeowner requested, the three-day right to cancel:
- Which of the following is listed among the prohibited acts that constitute cause for disciplinary action in connection with home improvement contracts?
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)