A homeowner files a complaint with the Arizona ROC against a residential contractor for abandoning a $25,000 kitchen remodel project. What is the maximum amount the homeowner can potentially recover from the Residential Contractors' Recovery Fund?
Correct Answer
A) $30,000
The Arizona Residential Contractors' Recovery Fund provides a maximum recovery of $30,000 per claim for residential projects.
Why This Is the Correct Answer
$30,000 is the statutory maximum per claim under the Arizona Residential Contractors' Recovery Fund, regardless of the actual contract amount. The fund is designed to provide a safety net exceeding many common project values, so a $25,000 loss is fully covered up to that cap.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 would seem logical because it matches the contract amount, but the fund's cap is set by statute at $30,000 — not by the individual project value. Recovery can include related costs beyond the raw contract amount (e.g., completion costs), up to the statutory limit.
Option C: $50,000
$50,000 is too high; that figure is not the statutory maximum for the Residential Contractors' Recovery Fund. Confusing this with general liability limits or other fund types leads to this error.
Option D: $15,000
$15,000 is well below the statutory maximum and would leave many homeowners undercompensated. This is not the correct figure under A.R.S. § 32-1132.
Memory Technique
Think '$30K floor for the Recovery door' — the Arizona Residential Contractors' Recovery Fund opens the door to a maximum of $30,000, always, regardless of project size.
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