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339 câu hỏi
201. Which is TRUE about a home improvement contract that omits the required Mechanics Lien Warning?
a.The omission violates §7159 and is cause for discipline✓
b.It is unaffected; the warning is entirely optional
c.The warning is needed only for new residential construction
d.The warning applies only to commercial building jobs

The Mechanics Lien Warning is one of the notices B&P §7159(e) requires in every home improvement contract, and §7159(a)(5) makes failure to provide any required information, notice or disclosure cause for discipline. (c) inverts the coverage: B&P §7164(b)(4) requires essentially the same warning in a contract to BUILD a single-family dwelling, so it appears in both settings rather than only in new construction. (d) points the wrong way entirely — the lien laws reach commercial work too, but this notice requirement is a residential consumer protection. (b) treats a statutory notice as boilerplate. The warning earns its place because Civil Code §8400 lets an unpaid subcontractor or supplier lien the property even where the owner paid the contractor in full, which is exactly what it tells the owner.

Bus. & Prof. Code §7159(e), §7159(a)(5); cf. §7164(b)(4), Civil Code §8400
202. The five-business-day cancellation right is extended to which category of home improvement buyers?
a.First-time homebuyers, under the disclosure rules for new home purchasers
b.Senior citizens, buyers who are 65 years of age or older✓
c.Veterans and active-duty service members, under a separate waiver rule
d.Buyers of contracts over $30,000, where more money is at stake

Civil Code §1689.6(a)(1) extends the period 'until midnight of the fifth business day if the buyer is a senior citizen', and B&P §7159(e) requires the notice itself to be captioned 'Five-Day Right to Cancel' in that case; §1689.6(a)(4) applies the five-day rule to contracts entered into on or after January 1, 2021. (d) is the most tempting wrong answer because it assumes protection scales with contract size; it does not — the trigger is the buyer's age. (a) and (c) name classes California protects in other statutes but not here. Two neighbouring rules are worth holding alongside this one: seven business days applies to a contract repairing damage from a declared disaster, and Civil Code §1689.13 lets any buyer waive the three-, five- or seven-day right in a genuine emergency by a separate dated, signed statement.

Civil Code §1689.6(a); Bus. & Prof. Code §7159(e)
203. A homeowner insists on paying the full $30,000 up front to 'lock in the price.' The contractor should know that accepting this:
a.Is required, since suppliers will not reserve materials otherwise
b.Is required whenever the owner offers to prepay the work
c.Would breach the downpayment cap and the pay-for-work-performed rule✓
d.Is fine, because the owner volunteered the money freely

B&P §7159.5(a)(3) caps the downpayment at $1,000 or 10 percent of the contract amount, whichever is LESS — on a $30,000 job that is $1,000, not $3,000 — and §7159.5(a)(5) bars requesting or accepting any further payment exceeding the value of work performed or material delivered. The owner's eagerness is beside the point: these are not terms the parties may negotiate away, and accepting the money is cause for discipline whoever proposed it. There is a lawful route to prepayment, and it is §7159.5(a)(8): furnish a performance and payment bond, a lien and completion bond, or a registrar-approved joint control covering full performance and payment, and paragraphs (3), (4) and (5) stop applying. (a) invents a supplier requirement; a deposit to a supplier is the contractor's own cash-flow problem. (b) and (d) both treat the owner's consent as a waiver, which it is not.

Bus. & Prof. Code §7159.5(a)(3), (5), (8)
204. Which is a required feature of the progress payment schedule in a home improvement contract?
a.It may be left to the contractor's later discretion
b.Each payment amount must be stated and tied to a described phase of work✓
c.It may only be expressed as a single lump sum due at start
d.It must be paid entirely at signing

B&P §7159 requires the schedule of progress payments to state each payment's dollar amount and correlate it to a specifically described phase of the work.

B&P §7159
205. A contractor performing a $700 service and repair job collects a $150 deposit before starting. This is:
a.Allowed, because $150 is less than 25 percent of the price
b.Allowed, because $150 sits under the $1,000 downpayment ceiling for contracts
c.Allowed, because the homeowner initiated the call requesting the repair work
d.Not allowed, because no payment is due until the work is complete✓

B&P §7159.10(a)(1)(D) makes 'no payment is due, or accepted by the contractor, until the work is completed' one of the four defining conditions of a service and repair contract, and §7159.10(a)(2) defines completion as every condition that caused the buyer to call being fully corrected and, where applicable, accepted by the building department. A $150 deposit breaks that condition, and §7159.10(b) then applies the full §7159 home improvement requirements to this $700 job — including the three-business-day right to cancel. (b) borrows the home improvement downpayment cap of $1,000 or 10 percent, whichever is less; on a service and repair contract the lawful downpayment is zero. (c) restates a different condition that happens to be satisfied, as though satisfying one excused the rest. (a) invents a percentage allowance.

Bus. & Prof. Code §7159.10(a)(1)(D), (a)(2), (b)
206. Which best describes when the contract price and payment terms must be filled in on a home improvement contract?
a.Before the buyer signs, so no material term is left blank✓
b.Only where the buyer asks to see the figures first
c.After the first building department inspection has been passed
d.Any time within a week after the buyer has signed it

B&P §7159(c)(3)(A) requires the contractor to give the buyer a copy of the contract signed and dated by both parties BEFORE any work is started, and §7159(d)(4) says it to the buyer in 12-point boldface: 'You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.' A blank price or payment schedule defeats both, and it defeats the cancellation right as well, because §7159(c)(3)(A) makes the buyer's receipt of that copy the event that starts the clock. (d) is the practical version of the violation: figures filled in after the signature are figures the buyer never agreed to. (b) makes a mandatory term depend on the buyer thinking to ask. (c) puts the price in after work has begun, which is the situation the whole article exists to prevent.

Bus. & Prof. Code §7159(c)(3)(A), §7159(d)(4)-(5)
207. The 'Three-Day Right to Cancel' notice given to a home improvement buyer must include:
a.A waiver of the buyer's cancellation rights, signed at the very same time
b.The contractor's federal and state income tax returns for the prior year
c.The names and addresses of the contractor's five most recent customers
d.The transaction date and the deadline by which the buyer may cancel✓

B&P §7159(e) prescribes the notice almost verbatim. Captioned 'Three-Day Right to Cancel' — or 'Five-Day Right to Cancel' for a senior citizen — it states the right to cancel within three business days, the date of the transaction, the calendar date by which a notice of cancellation must be sent, and where to send it, by email, mail, fax or delivery to the contractor's place of business. A detachable Notice of Cancellation form follows in duplicate, in the language of the sales presentation. The DATE is the working part: without it the buyer cannot know when the deadline falls, which is why postdating the contract is separately punishable under §7160 and §7161. (a) is the one thing the notice may never contain; the right is not waivable except through the narrow emergency route in Civil Code §1689.13. (b) and (c) are invented.

Bus. & Prof. Code §7159(e); Civil Code §1689.13; §7160-§7161
208. A residential re-roofing job is priced at $9,500. Which is required?
a.A verbal handshake agreement is sufficient here
b.Only an unconditional lien release is required
c.A commercial construction contract form applies
d.A written home improvement contract under §7159✓

Re-roofing an existing residence is home improvement under B&P §7151, and at $9,500 the aggregate contract price is well past the $500 line in §7151.2, so the whole §7159 package applies: the writing signed before work begins, the 'Home Improvement' heading, the price in dollars and cents, the description of the project and significant materials, the approximate start and substantial-completion dates, the payment schedule, the Three-Day Right to Cancel notice with its detachable form in duplicate, the Mechanics Lien Warning, the CSLB notice and the insurance notices. (a) is the violation the article exists to stop. (c) sends a residential job to a form carrying none of those consumer notices — the test is the type of property, not the size of the price. (b) confuses a lien release, a payment document exchanged during the job, with the contract itself.

Bus. & Prof. Code §7151, §7151.2, §7159
209. A key difference between a service and repair contract and a standard home improvement contract is that the service and repair contract:
a.Carries no dollar limit of any kind on the total contract amount
b.Is limited to $750 in total and permits no advance payment✓
c.Requires no written terms or notices of any kind at all
d.Allows a larger downpayment than a home improvement job

B&P §7159.10(a)(1) sets four conditions, and the two that separate this form from a home improvement contract are the ceiling — a contract amount of $750 or less — and the payment rule, that no payment is due or accepted until the work is completed. (d) inverts that comparison: a home improvement contract may take a downpayment of $1,000 or 10 percent of the contract, whichever is less, while a service and repair contract may take nothing at all before completion. (a) removes the ceiling that defines the form. (c) is the biggest misconception of the three — §7159.10(d)-(e) prescribes its own substantial list of writings and notices, including the 'Service and Repair' heading, the Notice to the Buyer reciting the four conditions, and the boldface cancellation statement. If any condition fails, §7159.10(b) applies the full §7159 requirements regardless of price.

Bus. & Prof. Code §7159.10(a)(1), (b), (d)-(e); §7159.5(a)(3)
210. 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✓

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.

B&P §7161
211. The down payment limit of $1,000 or 10% (whichever is less) applies to:
a.Home improvement contracts, per §7159✓
b.Only jobs under $500
c.Public works contracts
d.New commercial construction

The $1,000-or-10%-whichever-is-less down payment cap is a home improvement contract rule under B&P §7159, protecting residential owners.

B&P §7159(d)
212. A homeowner signs a contract that does not include the contractor's license number. This omission:
a.Violates §7159, which requires the licence number in the contract✓
b.Voids the homeowner's three-day right to cancel the job
c.Is acceptable so long as the contractor is in fact licensed
d.Is required only on jobs priced above $100,000 in total

B&P §7159(d)(1) requires the contract to state the contractor's name, business address AND licence number, and §7159(a)(5) makes the omission cause for discipline. The number is what lets an owner check licence status, classification, bond and complaint history on CSLB's site before the first payment. (c) is the contractor's usual answer and it misses the requirement: this is a disclosure rule, not a licensure rule, so a properly licensed contractor who leaves the number off has still violated the section. (d) invents a threshold; the only one in the article is the $500 that makes it a home improvement contract. (b) gets the consequence backwards — a non-compliant contract does not shorten the buyer's rights, and under §7159(c)(3)(A) the cancellation period does not begin until the buyer receives a signed, dated copy.

Bus. & Prof. Code §7159(d)(1), §7159(a)(5), §7159(c)(3)(A)
213. The primary purpose of requiring detailed written home improvement contracts is to:
a.Benefit the contractor, by locking the owner into the price he quoted
b.Let CSLB collect a filing fee on every signed home improvement contract
c.Add paperwork, so that the trade looks more professional to the public
d.Protect consumers with clear terms, payment limits, cancel rights✓

The Home Improvement Business article exists to put three things in the buyer's hands before money moves: a description of the work with the price in dollars and cents (§7159(d)); a payment schedule that never runs ahead of the value in place, plus a downpayment capped at $1,000 or 10 percent of the contract, whichever is less (§7159.5(a)(3)-(5)); and a three-business-day right to cancel with a detachable notice (§7159(e)). (a) inverts whose protection this is — a compliant contract constrains the contractor far more than the owner. (b) invents a fee; CSLB neither receives nor reviews these contracts, although §7159(a)(5) makes non-compliance cause for discipline. (c) treats the requirements as ceremony, but each one maps to a specific way buyers were losing money.

Bus. & Prof. Code §7159(d)-(e), §7159.5(a)(3)-(5)
214. Which is a required condition for a service and repair contract under §7159.10?
a.The contract amount must exceed $1,000 in labor charges alone
b.The contractor must offer the buyer a written monthly payment plan
c.The buyer initiated the call, rather than being solicited✓
d.The buyer must be 65 years of age or older at the time of signing

B&P §7159.10(a)(1)(B) makes buyer-initiated contact one of the four conditions: 'The prospective buyer initiated contact with the contractor to request the work.' The other three are a contract amount of $750 or less, no sale of goods or services beyond those reasonably necessary for the particular problem that prompted the call, and no payment due or accepted until the work is completed. A contract solicited door to door is the opposite fact pattern — it is a home solicitation under Civil Code §1689.5 and carries the three-business-day right to cancel. (a) inverts the ceiling into a floor, and uses the wrong number besides. (d) borrows the senior-citizen rule, which lengthens the cancellation period under §1689.6 but says nothing about which contract form applies. (b) invents a financing requirement; §7159.10 bars payment before completion rather than requiring a plan for it.

Bus. & Prof. Code §7159.10(a)(1); Civil Code §1689.5, §1689.6
215. A contractor uses one contract to cover both a $400 gutter cleaning and a $9,000 addition, calling the whole thing a 'service call.' The addition portion:
a.Requires a full home improvement contract complying with §7159✓
b.Escapes §7159, because the two jobs share one contract
c.Needs only a verbal quote, as the service call did
d.Is exempt as routine maintenance of the existing house

B&P §7151.2 measures the 'aggregate contract price specified in one or more improvement contracts', and the home improvement requirements bite once that aggregate exceeds $500 — bundling raises the figure, it cannot lower it. Worse for the contractor, §7159.10(b) provides that where a contract is presented as a service and repair contract without meeting every condition in §7159.10(a) — here both the $750 ceiling and the no-upselling rule fail — the full §7159 requirements apply to the whole contract regardless of price, cancellation rights included. (b) is the intended trick, and it backfires. (c) leaves a $9,000 job on a verbal quote, which §7159(d) forbids outright. (d) invents a maintenance exemption; §7151 defines home improvement broadly enough to cover repairing, remodeling, altering and adding to a residence.

Bus. & Prof. Code §7151, §7151.2, §7159(d), §7159.10(b)
216. When a contract funds are placed in an approved joint control, the joint control company's role is to:
a.Disburse funds to the contractor as work is verified complete✓
b.Perform the construction work the contractor cannot finish
c.Sell the property if the owner stops making payments
d.Issue the building permit on the owner's behalf

A funding control holds the money and pays it out as the work it was earmarked for is verified in place. That is exactly why B&P §7159.5(a)(8) lets a contractor who furnishes a registrar-approved joint control covering full performance and payment escape the downpayment cap, the payment-schedule requirement and the rule against collecting ahead of the value delivered — the control substitutes a neutral verifier for the statutory cash limits, and the same paragraph lets such a contractor accept payment before completion. Note that §7159.5(a)(8) also bars the contractor from holding any financial or other interest in the control, which is what keeps it neutral. (b), (c) and (d) each hand the control somebody else's job.

Bus. & Prof. Code §7159.5(a)(8)
217. A home improvement contract must be dated. The date is important primarily because it:
a.Starts the running of the three-day right to cancel✓
b.Fixes the warranty length
c.Determines the contractor's license expiration
d.Sets the property tax year

The signing date is critical because the buyer's three-business-day (or five-day for seniors) right to cancel runs from that date; an undated contract obscures this deadline.

B&P §7159(c)
218. Abandoning a home improvement project without legal excuse after starting is:
a.Perfectly acceptable if the contractor is busy
b.A prohibited act and grounds for disciplinary action✓
c.Only a civil matter with no license consequences
d.Allowed once 10% is complete

B&P §7161 and related statutes make willful abandonment of a construction or home improvement project without legal excuse a prohibited act and cause for CSLB discipline.

B&P §7161
219. A contractor's home improvement contract lists the total price but no breakdown of the payment schedule. Under §7159, this is:
a.Non-compliant, because a schedule of progress payments is required✓
b.Fully compliant
c.Only an issue if the buyer is a senior
d.Acceptable for jobs under $10,000

B&P §7159 requires a schedule of progress payments describing each phase and its dollar amount; a contract that lists only a total price fails this requirement.

B&P §7159
220. A homeowner requests a $500 furnace repair by phone. The contractor may present a service and repair contract that must include:
a.Required notices, a description of the work, and cancel rights✓
b.A ten-year exclusive service clause covering the whole heating system
c.A demand for the full price before the technician has even arrived
d.The homeowner's own financial statements for the three prior years

B&P §7159.10(d)-(e) lists what even this short form must carry: the 'Service and Repair' heading in 10-point boldface, the 12-point Notice to the Buyer reciting the four qualifying conditions, the notice that the buyer is entitled to a completed signed copy before work starts, the contract price in dollars and cents, a description of the project and the materials and equipment, the commercial general liability and workers' compensation notices, the offer to return replaced parts, and the boldface 'YOUR RIGHTS TO CANCEL BEFORE WORK BEGINS' statement, dated and signed by the buyer. (c) breaks the form outright: §7159.10(a)(1)(D) allows no payment until the work is complete, so demanding prepayment converts this $500 job into a full §7159 home improvement contract. (b) is selling beyond what the call required, which breaks a different condition. (d) is required nowhere.

Bus. & Prof. Code §7159.10(a)(1)(D), (d)-(e)
221. A contractor prints two identical cancellation notices and attaches them to the contract. This satisfies the requirement that the buyer receive:
a.A notice notarized by the contractor before the buyer is ever asked to sign it
b.A single notice, printed on the face of the contract itself
c.A notice recorded with the county recorder within five business days of signing
d.Two copies of the Notice of Cancellation form, captioned and detachable✓

B&P §7159(e) requires the cancellation notice to be accompanied by a completed form IN DUPLICATE, captioned 'Notice of Cancellation', on a separate and detachable page, in the same language as the sales presentation — two copies so the buyer can send one to the contractor and keep the other as proof of the date sent. Civil Code §1689.7 imposes the same duplicate requirement on home solicitation contracts generally. (b) leaves the buyer nothing to send; a notice printed only on the contract face defeats the mechanism. (a) and (c) import formalities from land records — a cancellation notice is delivered to the contractor, not notarized or recorded. If the form is missing, §7159(a)(6) lets the buyer complain to CSLB, and the cancellation period never starts to run.

Bus. & Prof. Code §7159(e), §7159(a)(6); Civil Code §1689.7
222. On a $3,000 fence job with no joint control, the maximum lawful down payment is:
a.$1,500
b.$600
c.$1,000
d.$300✓

Ten percent of $3,000 is $300, which is less than the $1,000 cap. Because the limit is the lesser of the two, the maximum down payment is $300.

B&P §7159(d)
223. The requirement that a home improvement contract be signed before work begins protects the buyer by:
a.It waives the contractor's liability for any defect discovered after the signing
b.It fixes the terms and cancellation right before the buyer is committed✓
c.It guarantees the buyer the lowest price then available for the work
d.It removes the need for a building permit on the described work

B&P §7159(d) requires the home improvement contract, and any change to it, to be in writing and signed before the work it covers begins, and §7159(e) puts the three-business-day cancellation notice next to the buyer's signature. The protection is sequencing: the buyer sees the price, the payment schedule, the completion date and the right to cancel while walking away still costs nothing. (a) inverts it — a compliant contract waives nothing, and B&P §7160 makes misrepresentation used to obtain a home improvement contract a separate offense. (c) confuses a consumer-protection formality with price regulation; California does not set contract prices. (d) confuses the contract with the permit; the building department's requirements are untouched by who signed what.

Bus. & Prof. Code §7159(d), §7159(e); §7160
224. Which best distinguishes when a contractor should use a service and repair contract versus a home improvement contract?
a.Service and repair fits any residential job the homeowner calls about, always
b.Service and repair fits jobs above $2,000 that need a fast turnaround
c.Service and repair fits any buyer who is 65 years or older
d.Service and repair fits buyer-initiated jobs of $750 or less, paid afterward✓

B&P §7159.10(a) makes this a checklist, not a judgment call: the service and repair form is available only when the contract amount is $750 or less, the buyer initiated contact to request the work, the contractor sells nothing beyond what is reasonably necessary for the particular problem that prompted the call, and no payment is due or accepted until the work is completed. Fail any one and §7159.10(b) applies the full §7159 home improvement requirements regardless of price, cancellation rights included. (a) drops every condition. (b) inverts the ceiling into a floor — $2,000 is above the limit, not inside it. (c) borrows the senior-citizen rule, which lengthens the cancellation period under Civil Code §1689.6 but says nothing about which contract form applies.

Bus. & Prof. Code §7159.10(a)-(b)
225. A home improvement contract's list of documents incorporated by reference (such as plans and specifications) must be:
a.Kept confidential from the buyer until completion
b.Filed with the county recorder before work starts
c.Held only by the contractor, in the job file
d.Listed in the contract and given to the buyer✓

B&P §7159(d) requires the contract to be legible and to clearly describe any other document to be incorporated into it, under the heading 'List of Documents to be Incorporated into the Contract'; §7159(d)(4) entitles the buyer to a completely filled in copy, signed by both parties, before any work may be started. A document the buyer has never seen cannot form part of what the buyer agreed to. §7164(c) says the same for a contract to build a single-family dwelling. (c) is the everyday violation — plans and specifications riding in the contractor's truck, referenced but never handed over. (a) states it as deliberate policy, which only compounds it. (b) confuses the contract with a recorded instrument; nothing about a home improvement contract is recorded, and CSLB neither reviews nor files it.

Bus. & Prof. Code §7159(d), §7159(d)(4); cf. §7164(c)
226. A contractor's estimate is not the same as a contract because the required home improvement contract must, unlike a mere estimate:
a.Carry the notices, payment schedule, dates and signatures §7159 requires✓
b.Be printed in color, on the contractor's own printed company letterhead paper
c.Include the contractor's most recent federal and state income tax returns in full
d.Be notarized by an officer of the contractor's own bank before any work starts

An estimate is a price opinion: it binds nobody and creates no rights. A home improvement contract is a regulated instrument. B&P §7159(d) requires the 'Home Improvement' heading in 10-point boldface, the contract amount in dollars and cents, a description of the project and the significant materials, the 'Approximate Start Date' and the estimated completion date (§7159(d)(10)-(11)), the payment schedule, and both signatures before work begins; §7159(e) adds the cancellation notice and form, the Mechanics Lien Warning, the CSLB notice and the insurance notices. Handing the owner an estimate and starting work leaves the contractor with no enforceable change-order rights and exposure to discipline under §7159(a)(5). (b), (c) and (d) each invent a formality the statute does not impose — nothing in §7159 concerns colour, tax records or notarization.

Bus. & Prof. Code §7159(d)(10)-(11), (e), §7159(a)(5)
227. If a contractor fails to give the buyer the required notice of the right to cancel, the buyer's cancellation period:
a.Still ends three business days after the buyer signed the contract
b.Is permanently waived, since the buyer signed without objecting
c.Does not begin to run until compliant notice is actually delivered✓
d.Shrinks to 24 hours, the period for an undisclosed cancellation right

Civil Code §1689.6(a) starts the clock on the buyer's receipt of an agreement 'which complies with Section 1689.7' — and §1689.7 is the section requiring the cancellation disclosure and the detachable Notice of Cancellation in duplicate, in the language of the sales presentation. A contract without them never starts the period, so the right to cancel stays open. (a) runs the clock off the signature regardless of the notice, which is exactly the shortcut the statute forecloses. (b) treats the signature as a waiver; these terms are mandatory under B&P §7159(d) and (e), and a buyer cannot waive them by signing a non-compliant form. (d) invents a 24-hour period that exists nowhere in California law.

Civil Code §1689.6(a), §1689.7; Bus. & Prof. Code §7159(e)
228. A homeowner pays a $1,000 down payment on a $60,000 remodel, then the contractor demands another $20,000 before ordering any materials. The second demand is:
a.Lawful, because the first downpayment was small
b.Lawful, because the owner can comfortably afford it
c.Lawful, provided the owner pays by cheque, not cash
d.Unlawful, since it exceeds the value of work delivered✓

B&P §7159.5(a)(5) forbids the contractor, downpayment aside, to request or accept any payment exceeding the value of the work performed or the material delivered — and here nothing has been performed and nothing delivered, so the permissible figure is zero. The $1,000 already taken was itself the maximum: §7159.5(a)(3) caps the downpayment at $1,000 or 10 percent of the contract amount, whichever is LESS, and on a $60,000 job that is $1,000, not $6,000. (a) treats the modest downpayment as head-room for a bigger second bite; the two rules are independent, and satisfying one does not relax the other. (b) and (c) treat the owner's means and the form of payment as though they mattered; neither appears in the statute. The lawful route to money up front is the §7159.5(a)(8) bond or registrar-approved joint control.

Bus. & Prof. Code §7159.5(a)(3), (5), (8)
229. Which of the following residential jobs would MOST likely require a full home improvement contract rather than a service and repair contract?
a.A $700 drain cleaning the owner called about
b.A $2,500 patio cover the contractor solicited door-to-door✓
c.A $200 faucet repair the owner phoned in
d.A $500 water heater fix requested by the owner

A $2,500 solicited patio cover exceeds the $750 service and repair limit and was not buyer-initiated, so it requires a full home improvement contract under §7159.

B&P §7159
230. The home improvement contract must disclose the total amount of any down payment. This ensures that:
a.The lender, not the parties, sets the price of the job
b.The contractor may collect more than the statute allows
c.CSLB waives its licensing fees for that contractor
d.The buyer can check the downpayment against the legal cap✓

B&P §7159(d)(8) requires the contract to carry the heading 'Downpayment', a space where the actual downpayment appears, and this statement in at least 12-point boldface type: 'THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.' Printing the figure beside the rule is what lets a buyer do the arithmetic on the spot — on a $60,000 job the ceiling is $1,000, not $6,000, because §7159.5(a)(3) takes the LESSER of the two. (b) is the opposite of the purpose; disclosure is how over-collection gets caught. (a) and (c) are invented — no lender sets the contract price, and CSLB's fees have nothing to do with the contract's terms. Note the exception: §7159.5(a)(8) lifts the cap for a contractor who furnishes a performance and payment bond or a registrar-approved joint control.

Bus. & Prof. Code §7159(d)(8); §7159.5(a)(3), (8)
231. A homeowner calls for a $650 emergency plumbing repair. Under a compliant service and repair contract, the contractor may collect payment:
a.Before starting, in full
b.In three weekly installments
c.As a 50% deposit up front
d.Only after the work is completed✓

B&P §7159.10 requires that no payment be collected on a service and repair contract until the work is complete, so the plumber bills after finishing the repair.

B&P §7159.10
232. A person solicits home improvement contracts for a contractor but is not registered as a home improvement salesperson. This person and the contractor:
a.Need no registration at all where the job comes to under $1,000 in total
b.May face discipline and penalties for an unregistered salesperson✓
c.Are exempt where the salesperson is a close member of the owner's family
d.Are fully compliant, since the contractor himself holds a valid licence

B&P §7153(a) makes it a MISDEMEANOR to engage in the occupation of home improvement salesperson without a current and valid registration at the time of the sales transaction, and lets the registrar cite the salesperson under §7028.7. The contractor is not a bystander: §7154 requires him to notify the registrar in writing of the salesperson's employment before that person begins work, and §7155.5 makes the salesperson's violations cause for disciplinary action against the contractor 'whether or not the contractor had knowledge of or participated in' them. The paperwork gives it away too — §7159(d)(2) requires the salesperson's name and registration number in the contract itself. (a) invents a dollar threshold; the duty turns on the activity, not the price. (c) invents a family exemption. (d) treats the contractor's licence as covering the salesperson, which is precisely what a separate registration scheme exists to prevent.

Bus. & Prof. Code §7153, §7154, §7155.5; §7159(d)(2)
233. A home improvement contract is written entirely in English, but all negotiations were conducted in Spanish. Under §7159, the contract:
a.Is acceptable, provided the buyer speaks some English
b.Should have been given to the buyer in Spanish, as negotiated✓
c.Needs only a Spanish-language title above the English terms
d.Is fully compliant, since English is the official language

Civil Code §1632 requires a person who negotiates a covered contract primarily in Spanish, Chinese, Tagalog, Vietnamese or Korean to deliver, before the buyer signs, a translation of the contract in that language. B&P §7159(e) carries the same principle into the Home Improvement article at the sharpest point: the Notice of Cancellation must be written 'in the same language, e.g., Spanish, as used in the contract', and the accompanying notice must be in the language principally used in the oral sales presentation. §7159.10(d)(1) says the same for a service and repair contract. (a) makes a consumer protection turn on the contractor's guess about the buyer's fluency, which is what a bright-line rule exists to avoid. (c) translates the label and leaves the obligations in a language the buyer never negotiated in. (d) is simply wrong on the law.

Civil Code §1632; Bus. & Prof. Code §7159(e), §7159.10(d)(1)
234. A homeowner offers to prepay 100% of a $5,000 job to get a discount. Without a joint control, the contractor may lawfully accept a down payment of at most:
a.$1,000
b.$500✓
c.$2,500
d.$5,000

Ten percent of $5,000 is $500, which is less than the $1,000 cap, so the maximum lawful down payment is $500 even though the owner offers to prepay in full.

B&P §7159(d)
235. Which action would be considered a prohibited act tied to home improvement contracting?
a.Stating the license number in the contract
b.Giving the buyer two cancellation notices
c.Providing the buyer a signed copy before work starts
d.Deviating from or disregarding plans and specifications without the owner's written consent✓

B&P §7161 lists departing from or disregarding the plans and specifications without the owner's written consent among prohibited acts and causes for disciplinary action.

B&P §7161
236. Taken together, the home improvement contract rules of §7159 require all of the following EXCEPT:
a.A down payment no greater than $1,000 or 10%, whichever is less
b.A written contract when the price exceeds $500
c.Full prepayment of the contract price before any work begins✓
d.A schedule of payments tied to work performed and mandatory consumer notices

Full prepayment before work begins is exactly what §7159 forbids; the statute limits down payments and ties progress payments to work performed while requiring the written contract and notices.

B&P §7159
237. A homeowner emails a contractor, 'I'll pay you $8,000 to repaint my house.' The contractor emails back, 'I accept, but the price is $9,500.' Which statement best describes the legal effect of the contractor's reply?
a.It is a valid acceptance because the contractor agreed to do the work
b.It is an acceptance because price is not a material term
c.It creates a binding contract at the average of the two prices
d.It is a counteroffer that rejects the homeowner's offer, so no contract yet exists✓

A purported acceptance that changes a material term of the offer is not an acceptance at all; it is a counteroffer that terminates the original offer. Because the contractor changed the price from $8,000 to $9,500, the parties have not reached mutual assent, and no contract is formed until someone accepts the new $9,500 terms. Price is a material term, so courts do not split the difference, and the original $8,000 offer is dead once rejected by the counteroffer.

238. Which of the following is NOT one of the essential elements required to form a legally enforceable contract?
a.Consideration (something of value exchanged)
b.A notarized signature from each party✓
c.A lawful object and capable parties
d.Mutual consent (offer and acceptance)

The essential elements of a contract are competent (capable) parties, mutual consent, a lawful object, and consideration. Notarization is not an essential element; most contracts are fully enforceable without a notary. A notary merely verifies identity for certain recorded documents. Many valid contracts, including most construction contracts, are enforceable when signed without any notarization.

239. Consideration in a contract is best defined as:
a.A good-faith deposit paid over at the time the contract is signed
b.A bargained exchange where each side gives up legal value✓
c.The careful thought a contractor gives the deal before signing it
d.The total dollar price that is stated in the written agreement

Civil Code §1550 lists a sufficient cause or consideration among the essential elements of a contract, and §1605 defines it: a benefit conferred on the promisor, or a prejudice suffered by the promisee, that the party is not already lawfully bound to give. The word doing the work is 'bargained' — each side must give something BECAUSE the other gave something. (c) plays on the everyday sense; deliberation is not consideration. (d) confuses the price with the exchange — consideration may be a promise, an act, or a forbearance, and a contract with no money in it at all is perfectly good. (a) names one common form consideration takes rather than the definition; a deposit is part performance, and the contract binds before any deposit is paid. Note §1614: a written instrument is presumptive evidence of consideration, which shifts the burden to the party denying it.

Civil Code §1550, §1605, §1614
240. A contractor signs a contract to build an addition, but the person who signed on behalf of the property owner is a 16-year-old minor. What is the likely legal status of the contract?
a.Voidable at the option of the minor because of lack of capacity✓
b.Automatically void from the start with no remedy
c.Fully binding on the minor like any adult
d.Enforceable only if it was in writing

Minors generally lack the legal capacity to be bound by contracts, so a contract signed by a minor is voidable at the minor's option, not automatically void. The minor may disaffirm the contract, but an adult party is generally bound if the minor chooses to enforce it. Capacity, not the writing requirement, is the issue here, and voidable is different from void: a void contract has no legal effect at all, while a voidable one remains valid unless the protected party rescinds it.

241. A contractor agrees to install an unpermitted electrical system that knowingly violates code and endangers occupants. If a dispute arises over payment, how will a court most likely treat the agreement?
a.As unenforceable because the object of the contract is unlawful✓
b.As enforceable but with reduced damages
c.As enforceable because both parties agreed to it
d.As voidable only by the homeowner

A contract must have a lawful object. A contract to perform an illegal act, such as knowingly installing dangerous, code-violating work, is illegal and therefore unenforceable by either party; courts generally leave the parties where they find them. Mutual agreement cannot cure illegality. This is not merely voidable by one party; illegality makes the entire bargain unenforceable as against public policy.

242. Under the objective theory of contracts, whether a binding agreement exists is determined by:
a.The party who drafted the document
b.Whichever party can prove better faith
c.The parties' outward words and conduct as a reasonable person would understand them✓
d.The secret, subjective intent hidden in each party's mind

Courts apply the objective theory of contracts: mutual assent is judged by the parties' outward expressions, words and conduct, as a reasonable person would interpret them, not by unexpressed private intentions. A party's secret intent not to be bound is irrelevant if their outward conduct manifests agreement. This protects reasonable reliance on what people actually say and do.

243. A supplier offers to sell a contractor 500 sheets of drywall at a stated price, promising in a signed writing to hold the offer open for 10 days. Before accepting, what is the general rule about an ordinary (non-option) offer?
a.Every offer must stay open for a reasonable time regardless
b.An offer can never be revoked once it is communicated
c.Only offers made in writing may be revoked by the offeror
d.An offer may be revoked any time before it is accepted✓

Civil Code §1586 lets a proposal be revoked at any time before its acceptance is communicated, and §1587 lists how revocation happens — communication to the offeree, lapse of the stated or a reasonable time, failure of a prescribed condition, or the death or incapacity of the offeror. The facts in this question describe the EXCEPTION rather than the rule: an offer held open by a signed promise is an option, and in construction a subcontractor's bid can be made irrevocable by the general contractor's reasonable reliance under Drennan v. Star Paving Co. (1958) 51 Cal.2d 409. (a) confuses lapse with irrevocability — a reasonable time limits how long an offer lasts, it does not stop the offeror withdrawing it sooner. (b) states the option rule as though it were the general rule. (c) invents a form distinction; revocability does not turn on whether the offer was written.

Civil Code §1586, §1587; Drennan v. Star Paving Co. (1958) 51 Cal.2d 409
244. A contractor mails a written acceptance of a subcontractor's offer. Under the traditional 'mailbox rule,' acceptance by an authorized means is generally effective when:
a.The acceptance is properly dispatched (mailed)✓
b.The offeror signs a confirmation
c.Both parties meet in person
d.The offeror actually reads it

Under the traditional mailbox rule, an acceptance sent by an authorized or reasonable means is effective upon dispatch, that is, when properly mailed, not when received or read by the offeror. Revocations, by contrast, are effective only on receipt. This rule allocates the risk of transmission delay to the offeror who chose to make the offer.

245. A promise to make a gift, with nothing given in return, is generally:
a.A fully enforceable contract once it is accepted
b.Unenforceable as a contract, since consideration is missing✓
c.Enforceable as soon as the promise is put in writing
d.Enforceable where a disinterested witness saw the promise

Civil Code §1550 makes a sufficient cause or consideration an essential element of a contract, and §1605 defines it as a benefit conferred on the promisor, or a prejudice suffered by the promisee, that neither is already lawfully bound to give. A gift promise has neither, so there is nothing to enforce. (c) reaches for the Statute of Frauds, which is a rule about FORM — writing down an unenforceable promise does not supply the consideration it lacks, though Civil Code §1614 does make a written instrument presumptive evidence of consideration, which shifts the burden rather than creating the element. (d) invents a witness rule California does not have. The genuine escape is promissory estoppel: where the promisee justifiably and substantially relies to their detriment, the promise can be enforced despite the missing consideration.

Civil Code §1550, §1605, §1614
246. A contractor already under contract to frame a house for $40,000 demands an extra $5,000 midway through, claiming the job is 'harder than expected,' but the scope has not changed. If the owner reluctantly agrees, the promise to pay the extra $5,000 is generally:
a.Unenforceable, because the contractor gave no new consideration for it✓
b.A valid change order, since the parties both signed off on the increase
c.Enforceable only where the extra comes to under 20 percent of the contract
d.Fully enforceable, because the owner agreed to pay the extra amount

A promise to pay more for exactly what the other party is already bound to do has no consideration behind it: Civil Code §1605 requires a benefit conferred, or a prejudice suffered, that the party is 'not lawfully bound' to give, and the framer already owed the framing. Two lawful routes exist — §1698(b) enforces an oral modification to the extent it has been executed, and §1698(c) a written one supported by new consideration, so a genuine change in scope or an agreed acceleration would support the increase. (b) is the trap: a signature makes a document, not consideration, and a change order that adds no work adds no obligation — which is also why B&P §7159(e)(3) requires the change order to state the added scope. (c) invents a threshold found nowhere. (d) mistakes assent for consideration, which is precisely the distinction the pre-existing duty rule draws.

Civil Code §1605, §1698(b)-(c); Bus. & Prof. Code §7159(e)(3)
247. Under the Statute of Frauds, which type of agreement generally must be in writing to be enforceable?
a.Any contract regardless of subject or duration
b.An oral agreement to paint a fence next week for $300
c.A same-day handshake to haul away debris
d.An agreement that by its terms cannot be performed within one year✓

The Statute of Frauds (Civil Code §1624) requires certain contracts to be in writing and signed, including agreements that by their terms cannot be performed within one year, contracts for the sale of real property, and suretyship promises to answer for another's debt. Short-term, quickly performed jobs like a next-week fence painting or same-day debris hauling need not be written. The statute targets specific categories, not every contract.

California Civil Code §1624
248. Which of the following contracts is LEAST likely to be required in writing under the Statute of Frauds?
a.An agreement that cannot be completed within one year
b.A contract for the sale of land
c.A promise to pay another person's debt (a guaranty)
d.An oral agreement to install a water heater tomorrow for $600✓

The Statute of Frauds requires a writing for specific categories such as sales of land, promises to answer for the debt of another (guaranties), and contracts not performable within one year. A simple, fully performable-within-days job like installing a water heater tomorrow falls outside those categories and can be enforceable orally, though other laws (like home improvement contract rules) may separately require a writing.

California Civil Code §1624
249. A landowner orally promises to sell a vacant lot to a contractor, and both shake hands. When the landowner backs out, the contractor sues to enforce the oral sale. The strongest defense the landowner has is:
a.The object of the contract was unlawful, so no contract formed
b.The contractor lacked capacity to contract for real property
c.There was no consideration, since only a handshake was exchanged
d.The Statute of Frauds bars an oral contract to sell land✓

Civil Code §1624(a)(3) makes an agreement for the sale of real property, or an interest in it, invalid unless it or some memorandum of it is in writing and subscribed by the party to be charged. A handshake is not a subscription, so the landowner has a complete defense — subject to part performance or estoppel, which take more than a handshake. (c) misreads consideration: the exchanged promises ARE consideration; the defect is the FORM of the agreement, not its substance. (b) raises capacity, which under Civil Code §1556 turns on minority, unsound mind or deprivation of civil rights, none of which appears in the facts. (a) raises illegality under §1667; selling a vacant lot is entirely lawful.

Civil Code §1624(a)(3); cf. §1556, §1667
250. The main purpose of the Statute of Frauds is to:
a.Require certain important contracts to be evidenced by a signed writing✓
b.Set maximum prices for residential construction work throughout California
c.Punish contractors who commit fraud against the residential consumers who hire them
d.Require every contract to be notarized before signing

Civil Code §1624 lists the agreements that are invalid unless in writing and subscribed by the party to be charged: those that cannot be performed within a year, promises to answer for another's debt, agreements for the sale of real property or a lease longer than a year, an agreement authorizing a broker's commission, and a few others. The purpose is evidentiary — to stop a court enforcing an important promise on nothing but one side's recollection. (c) confuses the Statute of Frauds with fraud itself; it punishes nobody and bites on perfectly honest parties who simply failed to write it down. (d) inflates the requirement: a signature by the party to be charged is enough, and §1624 requires notarization nowhere. (b) invents price regulation.

Civil Code §1624
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