A contractor receives a $28,000 residential contract and collects a $1,500 down payment. Under Oregon law, the contractor must begin work within how many days or return the down payment?
Correct Answer
B) 20 days
Oregon residential contractor law requires work to begin within 20 days of receiving down payment or the payment must be returned.
Why This Is the Correct Answer
Oregon residential contractor law requires that once a contractor collects a down payment, work must begin within 20 days or the contractor must return the down payment to the homeowner. This protects consumers from contractors who collect money without starting work in a reasonable timeframe.
Why the Other Options Are Wrong
Option A: 30 days
30 days is a common default assumption for many notice and deadline periods, but Oregon's specific requirement for beginning work after collecting a down payment is 20 days, not 30. Using 30 days would give the contractor 10 extra days beyond what the law allows.
Option C: 10 days
10 days is too short and does not match the Oregon statute. While 10 days might appear as a conservative consumer-protection option, the law specifically sets 20 days as the threshold, giving contractors a reasonable window while still protecting homeowners.
Option D: 45 days
45 days would allow the contractor to hold a down payment for over six weeks without beginning work — too long under Oregon consumer protection law. This timeframe does not correspond to any Oregon residential contractor requirement for commencement of work.
Memory Technique
Remember '20 days to show your face' — once you take the money, you have 20 days to show up and start work or give it back. Think of it as a 'two zero' (20) rule: two weeks plus the weekend.
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A subcontractor completes electrical work on February 15th. The general contractor stops all work on March 1st due to weather, then resumes April 10th and finishes the project May 20th. Under ORS 87, the subcontractor's lien filing deadline is:
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Under ORS 701, what is the maximum amount a residential contractor can collect as a down payment before starting work?