A Sacramento homeowner signs an $8,400 home improvement contract. What is the largest lawful down payment the contractor may collect at signing?
Correct Answer
A) $840, because 10 percent is less than the $1,000 cap.
For a CA home improvement job, the down payment may not exceed $1,000 or 10 percent of the contract price, whichever is less. Ten percent of $8,400 is $840.
Why This Is the Correct Answer
For a CA home improvement job, the down payment may not exceed $1,000 or 10 percent of the contract price, whichever is less. Ten percent of $8,400 is $840.
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