A contractor completes $8,500 worth of kitchen remodeling work on March 15th. The homeowner disputes $2,000 of the charges. Under California prompt payment law, when must the undisputed portion be paid?
Correct Answer
A) Within 30 days of completion
Under California prompt payment requirements, the undisputed portion ($6,500) must be paid within 30 days of completion, even when there are disputes over other portions.
Why This Is the Correct Answer
Option A is correct. California prompt payment law requires that the undisputed portion of a contractor's payment be made within 30 days of completion, even when a portion of the invoice is in dispute. The homeowner cannot withhold the undisputed $6,500 simply because $2,000 is contested — the two amounts are treated separately.
Why the Other Options Are Wrong
Option B: Within 7 days of completion
Option B (7 days) is far too short and does not reflect California's prompt payment statute for private residential work. Seven-day deadlines apply in certain subcontractor payment contexts or other specific scenarios, not to the owner-to-contractor payment on a completed job.
Option C: Within 21 days of completion
Option C (21 days) is not the correct deadline under California prompt payment law for this scenario. While 21 days appears in some payment contexts (such as certain public works or retention release timelines), the correct deadline for payment of the undisputed amount on private work upon completion is 30 days.
Option D: Within 10 days of completion
Option D (10 days) has no basis in California prompt payment law for owner-to-contractor payment on a completed private project. This may be confused with short payment windows in other contexts or states.
Memory Technique
Remember '30 days = done and paid.' Once the job is complete, the clock starts. Even if there's a fight over part of the bill, the owner has 30 days to pay what isn't disputed. Think of it like a restaurant bill — you still pay for the dishes you enjoyed, even if you're arguing about the one that was wrong.
More California Questions
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A swimming pool contract for $28,000 is signed on Wednesday at the customer's home. The contract includes proper cancellation notices. If the customer wants to cancel, they must do so by when?
Under California's prompt payment law, if a contractor submits a proper payment request to a property owner, payment is due within how many days?
A general contractor hires a subcontractor for $22,000. The general contractor receives payment from the owner but fails to pay the subcontractor within how many days, subjecting themselves to penalty interest?
Under California Civil Code Section 8180, when must a subcontractor serve a preliminary notice on a private work project?
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A subcontractor completes roofing work on Tuesday, March 15th. The general contractor is paid by the owner on Friday, March 25th. Under California prompt payment laws, what is the latest date the general contractor must pay the subcontractor?
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Under California's prompt payment law, if a contractor submits a proper payment request to a property owner, payment is due within how many days?
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