A $14,800 California home improvement contract is subject to the ordinary down-payment limit, with no applicable exception. It requests $1,480 before work starts. What is the problem?
Correct Answer
A) Exceeds cap.
The stated ordinary limit is $1,000 because 10% of $14,800 is $1,480. The requested down payment is $480 too high; ordering materials does not change that result.
Why This Is the Correct Answer
The stated ordinary limit is $1,000 because 10% of $14,800 is $1,480. The requested down payment is $480 too high; ordering materials does not change that result.
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