A homeowner exercises their 3-day right to cancel a $15,000 kitchen remodeling contract. The contractor had already ordered $2,500 in custom cabinets that cannot be returned. Who is responsible for this cost?
Correct Answer
B) The contractor absorbs the entire loss
When a homeowner properly exercises the right to cancel, the contractor cannot charge for materials ordered or work performed, even if costs were incurred.
Why This Is the Correct Answer
When a homeowner properly exercises the right to cancel, the contractor cannot charge for materials ordered or work performed, even if costs were incurred.
More ca-contracts Questions
A homeowner signs a $15,000 home improvement contract on Monday at 2 PM at the contractor's office. Under California law, what is the latest time the homeowner can cancel the contract without penalty?
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?
Which of the following contracts is NOT subject to the 3-day right to cancel under California law?
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?
A contractor receives a progress payment of $18,000 from a property owner on Monday. The contractor owes subcontractors $12,000 of this amount. By what day must the contractor pay the subcontractors?
A swimming pool contractor enters into a $45,000 contract to install an in-ground pool. The contract includes a $5,000 down payment. What is the maximum down payment the contractor can legally collect under California law?
A contractor completes $15,000 worth of electrical work on a commercial building. The property owner disputes $3,000 of the charges. Under California prompt payment law, what amount must the owner pay within the required timeframe to avoid penalties?
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A contractor receives a stop payment notice on a project where they are owed $25,000. The property owner has $40,000 in construction funds remaining. How much must the owner withhold?