Contracts & ExecutionQuestion 764 of 1605
A contractor promises a homeowner a 'model home discount' if they let their house be used for advertising, to induce the signing. If false, this is:
a.Only an issue for the salesperson, not the contractor
b.Permissible if under $1,000
c.A legitimate marketing tactic with no risk
d.A prohibited inducement and cause for disciplinary action
Explanation
B&P §7161 prohibits using false promises, such as a bogus 'model home' or advertising discount, to induce a homeowner to sign a home improvement contract; it is grounds for discipline.
Law Reference: B&P §7161Practice all 1605 questions free — no signup required.
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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)