A homeowner signs a contract for solar panel installation at a trade show. The contract was signed on Friday at 2 PM. Assuming no holidays, what is the latest time the homeowner can cancel the contract?
Correct Answer
D) Wednesday at 2 PM
The 3-business-day right to cancel runs from Friday (day 1), Monday (day 2), to Tuesday (day 3), expiring at the same time Wednesday.
Why This Is the Correct Answer
Under the Home Solicitation Sales Act and Civil Code Section 1689.5, consumers have three business days to cancel. Counting business days from the signing: Day 1 = Friday (the day of signing counts), Day 2 = Monday, Day 3 = Tuesday. The right to cancel expires at midnight of the third business day — or more precisely, at the same time of day as the contract was signed on the third business day after the contract was entered into, which is Wednesday at 2 PM.
Why the Other Options Are Wrong
Option A: Monday at 2 PM
Monday at 2 PM represents only one full business day after signing, not three. This would be correct only if a one-business-day cancellation window applied.
Option B: Tuesday at 2 PM
Tuesday at 2 PM represents two business days after Friday. The consumer needs three full business days, so Tuesday is one day short.
Option C: Wednesday at 5 PM
Wednesday at 5 PM uses the correct day (Wednesday) but the wrong time. The cancellation window expires at the same time as the contract was signed (2 PM), not at a generic end-of-business time.
Memory Technique
Use the '3-Day Countdown' rule: Start counting at the signing day. Fri=1, Mon=2, Tue=3 — cancel by the same clock time on the NEXT business day (Wed). Weekends never count.
More California 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?
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According to B&P Code 7159, which of the following must be included in a home improvement contract for work over $500?
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