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.
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.
Why the Other Options Are Wrong
Option A: $1,850, because that equals 10 percent of the contract.
$1,850, because that equals 10 percent of the contract. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option B: $925, because the contractor must cut the 10 percent figure in half.
$925, because the contractor must cut the 10 percent figure in half. is below the supported result for project contracts; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $1,500, if the owner initialed the payment line.
$1,500, if the owner initialed the payment line. is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Memory Technique
Small-job money rule for project contracts: ceiling and percent race, lower one wins.
Reference Hint
Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159; know the rule or calculation trigger without relying on exam-room lookup.
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