A $24,700 home improvement contract uses the 10 percent or $1,000 rule. What maximum deposit may be requested?
Correct Answer
B) $1,000.
Ten percent is $2,470, but the maximum down payment is the lesser amount, $1,000.
Why This Is the Correct Answer
Ten percent is $2,470, but the maximum down payment is the lesser amount, $1,000.
Why the Other Options Are Wrong
Option A: $2,470 ten percent.
$2,470 ten percent. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option C: $1,235 half deposit.
$1,235 half deposit. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option D: $3,000 mobilization.
$3,000 mobilization. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Auditing Salesperson'S cap: a grand or a tenth; the smaller gate opens.
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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