A home improvement agreement is priced at $9,500. Applying the lesser of 10 percent or $1,000 deposit cap, what deposit may be requested?
Correct Answer
D) $950.
Ten percent of $9,500 is $950, and the deposit cap is the lesser of $950 and $1,000.
Why This Is the Correct Answer
Ten percent of $9,500 is $950, and the deposit cap is the lesser of $950 and $1,000.
Why the Other Options Are Wrong
Option A: $900.
$900. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $1,950.
$1,950. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option C: $5,950.
$5,950. 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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