In the window replacement file, an $18,200 home improvement contract uses the lesser of 10 percent or $1,000 deposit rule. What is the maximum down payment?
Correct Answer
B) $1,000.
Ten percent of $18,200 is $1,820, so the $1,000 cap controls.
Why This Is the Correct Answer
Ten percent of $18,200 is $1,820, so the $1,000 cap controls.
Why the Other Options Are Wrong
Option A: $1,820.
$1,820. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Option C: $910.
$910. is below the supported result for down payment calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $2,000.
$2,000. is above the supported result for down payment calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Down Payment cue Auditing Contractor'S: ceiling and percentage shake hands; the lower hand controls.
Reference Hint
Study anchor (closed-book): memorize Down payment calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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