An $18,400 patio enclosure contract is a CA home improvement job. What is the maximum down payment?
Correct Answer
B) $1,000.
Ten percent is $1,840, but the rule limits the down payment to the lesser of 10 percent or $1,000.
Why This Is the Correct Answer
Ten percent is $1,840, but the rule limits the down payment to the lesser of 10 percent or $1,000.
Why the Other Options Are Wrong
Option A: $1,840 ten percent.
$1,840 ten percent. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option C: $920 half deposit.
$920 half deposit. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $2,500 mobilization.
$2,500 mobilization. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Small-job money rule for down payment: ceiling and percent race, lower one wins.
Reference Hint
Study anchor (closed-book): memorize Down payment calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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