Contract Requirements & Execution — California C-20 Practice Questions

48 questions · 21% of the Law & Business exam

Worked questions

1. A home improvement contractor requests 25 percent down to buy special-order material. Is that allowed under the standard rule?

AYes, special-order material is an exception
BYes, any amount is allowed if called a deposit
CNo, all down payments are prohibited
No; the down-payment cap applies

Why D is correct

CSLB states that the statutory cap applies without a special-order-material exception. Later payments must also be structured consistently with work and materials provided.

2. A routine remodel is placed on an emergency service-and-repair form solely to shorten the paperwork. Does the label alone make the agreement eligible for those rules?

ANo, because service-and-repair contracts do not exist
BYes, if the contractor writes the label
CYes, whenever material is stocked
No; it must meet service-and-repair requirements

Why D is correct

The best answer is: No; it must meet service-and-repair requirements. The exception is limited and fact-specific, including the nature and timing of the request and required form. A heading alone cannot transform an ordinary planned improvement into the exception. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.

3. An emergency repair form has the right title but omits mandatory disclosures and signatures. Does the heading alone make it compliant?

ANo service work can use a written contract
No; service-and-repair rules still apply
CYes, the title controls
DYes, if work is profitable

Why B is correct

The best answer is: No; service-and-repair rules still apply. The statutory service-and-repair treatment depends on transaction facts and prescribed contract content. A label cannot replace notices, price, authorization, and other required terms. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.

45 more in the bank

Answers and explanations for these are in the app.

A buyer timely exercises an applicable cancellation right. What should the contractor do?
A contract says only 'remodel kitchen' with no material, equipment, or work detail. Why is this deficient?
A contractor stops a project without lawful excuse and refuses to communicate. What license-law risk arises?
A payment schedule uses dates but does not describe work or materials supporting each payment. What is missing?
A prime hires an unlicensed person to perform work requiring a contractor license. What is the problem?
A residential home improvement project has an aggregate price over $500. What basic contract rule applies?
A salesperson promises a lifetime warranty that the written contract does not contain. What should occur?
A subcontract omits the plans, schedule, insurance, and change procedure that govern the work. What risk results?
An emergency service agreement is used, but required disclosures and signatures are missing. Does the heading alone make it compliant?
An employee negotiates and solicits home improvement contracts away from the contractor’s regular place of business. What status should be checked?
An owner verbally asks for added work on a home improvement project. What should happen before performing it?
Before final payment, what should contract closeout reconcile?
May every small home improvement job be labeled 'service and repair' to avoid ordinary contract rules?
Plans and specifications conflict with the signed scope. What should the contractor do before building the affected work?
The owner asks the contractor to omit a required permit to save time. What is the appropriate response?
What is the purpose of a joint control agreement on a qualifying home improvement project?
What is wrong with a home improvement schedule that demands nearly the entire price before corresponding work or materials?
What must a home improvement change order clearly describe?
What should the contract say about required permits?
When should the customer receive a completed copy of the signed home improvement contract?
Why is the mechanics-lien warning included in home improvement contracting?
Why must the applicable cancellation notice be included with a home improvement contract?
Why should a home improvement contract state approximate start and completion information?
A buyer sends a timely cancellation under an applicable statutory right, but the contractor proceeds anyway. What duties should control the response?
A change order says only “extra work—$4,000” and gives no changed work or time impact. Which information should it contain?
A contract provides no approximate start or completion information even though work will span several months. Why should timing be stated?
A contractor and homeowner agree by text to a $7,500 bathroom renovation and plan to write the scope after demolition. What contract requirement applies before work?
A contractor walks off a partially completed job after a minor disagreement and ignores all owner communications. Which licensing exposure may result?
A customer offers to accept responsibility if the contractor deliberately skips a required building permit. How should the contractor respond?
A home improvement payment schedule lists dollar amounts and calendar dates but never ties them to completed work or delivered materials. What is missing?
A homeowner does not understand that unpaid lower-tier claimants might assert rights despite payments to the prime. Which required warning addresses that risk?
A prime assigns licensed electrical work to an inexpensive person whose only credential is a business license. What should the prime have verified?
A proposal says “complete renovation” but identifies no rooms, work, principal materials, or equipment. What must be improved?
A qualifying project uses a joint-control service to release money as documented stages are completed. What is the arrangement intended to control?
A salesperson orally promises a warranty much broader than the written contract. How should the discrepancy be handled before signing?
A salesperson removes the cancellation form from a home improvement packet because the buyer says the project is urgent. Why is that improper?
A schedule requires 80% of the home improvement price before demolition is complete and before most materials arrive. What rule does it violate?
A subcontract simply says “perform electrical” and incorporates no plans, schedule, insurance terms, or change procedure. What management risk results?
After signing a kitchen contract, the homeowner asks on site for an added circuit and cabinet lighting. What documentation should precede that work?
An employee routinely solicits and negotiates home improvement contracts in customers' homes. Which registration question must the contractor resolve?
At project completion, the contractor asks for final payment although inspection signoff, punch work, and supplier releases remain unresolved. What should closeout include?
Both parties sign a compliant home improvement agreement, but the customer receives no completed copy until a week after work starts. What timing rule was missed?
On a $6,000 home improvement job without a qualifying blanket bond exception, the contractor requests $1,500 for a special-order fixture. What is the standard maximum down payment that may be requested?
The drawing calls for copper piping while the signed scope lists PEX, and neither document establishes priority. What should happen before installation?
The owner and contractor each assume the other will obtain permits and the price includes no permit fees. What should the contract clarify?

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