A homeowner cancels a $8,000 roofing contract within the 3-day right to cancel period. The contractor had already ordered $1,200 in custom materials. How much can the contractor retain?
Correct Answer
C) $0 - full refund required
Under Oregon's 3-day right to cancel law, contractors must provide full refunds when homeowners cancel within the cancellation period, regardless of expenses incurred.
Why This Is the Correct Answer
Oregon's 3-day right to cancel law provides absolute protection for homeowners, requiring contractors to provide full refunds when cancellation occurs within the statutory period. This consumer protection law supersedes any contractor expenses or material costs incurred. The law prioritizes consumer rights over contractor business losses, ensuring homeowners can cancel without financial penalty during the cooling-off period, regardless of any preparations or purchases made by the contractor.
Why the Other Options Are Wrong
Option A: $800 - 10% of contract value
The 10% retention amount has no basis in Oregon's cancellation law. The statute requires full refunds without percentage-based deductions or administrative fees when homeowners exercise their right to cancel within the 3-day period.
Option B: $2,400 - 30% of contract value
A 30% retention violates Oregon's consumer protection requirements. The law mandates complete refunds during the cancellation period, not partial refunds based on arbitrary percentages of the contract value.
Option D: $1,200 - actual material costs
While the contractor did incur actual material costs, Oregon law prohibits retaining any amount during the 3-day cancellation period. Material expenses are considered a business risk that contractors must absorb when homeowners exercise their legal right to cancel.
Memory Technique
Remember '3-Day = 0-Pay': During Oregon's 3-day cancellation period, contractors must refund 100% and retain 0%, no matter what expenses they've incurred.
More or-supplement Questions
Under ORS 701, what is the minimum amount of public liability insurance required for a CCB licensed contractor?
An employee is injured on a job site. The contractor's workers compensation premium was $2,400 annually. If they were operating without coverage, what is the minimum penalty multiplier applied to the premium?
A contractor completes a $12,000 deck project but the homeowner claims defective work. Under ORS 87, how long does the contractor have to file a lien for unpaid amounts?
Under ORS 701, what is the maximum amount a residential contractor can collect as a down payment before starting work?
A general contractor hires a subcontractor who performs $15,000 worth of electrical work. The property owner pays the general contractor but the general contractor fails to pay the subcontractor. Calculate the subcontractor's maximum lien claim under ORS 87.
A renovation project in a 1972 home will disturb 15 square feet of painted trim. The contractor is not RRP certified. What must they do under Oregon lead regulations?
What is the minimum experience requirement for obtaining an Oregon CCB contractor license?
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A residential contractor completes a $35,000 kitchen remodel but fails to obtain required permits. Under Oregon law, what is the potential penalty?
Under Oregon residential contractor requirements, what is the minimum bond amount required for a CCB license?
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