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Law & BusinessContractsmedium23% of exam part

A homeowner approves a $2,400 deletion and a $1,150 addition at the same time. What is the net contract adjustment?

Correct Answer

A) $1,250 credit.

The deletion exceeds the addition by $1,250, so the net adjustment is a $1,250 credit.

Answer Options
A
$1,250 credit.
B
$1,250 increase.
C
$3,550 credit.
D
$3,550 increase.

Why This Is the Correct Answer

The deletion exceeds the addition by $1,250, so the net adjustment is a $1,250 credit.

Why the Other Options Are Wrong

Option B: $1,250 increase.

$1,250 increase. is not aligned with the supported result for net change calculation; it has the wrong label or classification even if the number looks close.

Option C: $3,550 credit.

$3,550 credit. is above the supported result for net change calculation; it likely adds scope or money the rule does not allow.

Option D: $3,550 increase.

$3,550 increase. is above the supported result for net change calculation; it likely adds scope or money the rule does not allow.

Memory Technique

Net Change gate for Combining Approved: paper opens before money moves.

Reference Hint

Study anchor (closed-book): memorize Net change 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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