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An $18,500 patio and door replacement contract is a CA home improvement job. What down payment amount is allowed at signing?

Correct Answer

D) $1,000, because 10 percent exceeds the statutory dollar cap.

Ten percent of $18,500 is $1,850, so the lesser amount under the CA down payment rule is the $1,000 cap.

Answer Options
A
$1,850, because that equals 10 percent of the contract.
B
$925, because the contractor must cut the 10 percent figure in half.
C
$1,500, if the owner initialed the payment line.
D
$1,000, because 10 percent exceeds the statutory dollar cap.

Why This Is the Correct Answer

Ten percent of $18,500 is $1,850, so the lesser amount under the CA down payment rule is the $1,000 cap.

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