Contracts & ExecutionQuestion 759 of 1605
A contractor performing a $700 service and repair job collects a $150 deposit before starting. This is:
a.Allowed because it is under 25%
b.Allowed because it is under $200
c.Allowed because the buyer requested the work
d.Not allowed, because no payment may be collected until the service and repair work is complete
Explanation
B&P §7159.10 prohibits collecting any payment on a service and repair contract until the work is finished; a pre-start deposit is not permitted.
Law Reference: B&P §7159.10Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)