A homeowner signs a contract on Friday for $8,000 in landscaping work. The contract was signed at a home and garden show. When does the 3-day cancellation period expire?
Correct Answer
C) Wednesday at midnight
The 3-day cancellation period begins the next business day after signing. Saturday and Sunday don't count, so Monday (day 1), Tuesday (day 2), Wednesday (day 3). Cancellation expires Wednesday at midnight.
Why This Is the Correct Answer
The 3-day cancellation period under California Civil Code Section 1689.5 begins the business day after signing, and Saturdays, Sundays, and public holidays do not count as business days. Signed Friday: Day 1 = Monday, Day 2 = Tuesday, Day 3 = Wednesday. The period expires at midnight ending Wednesday.
Why the Other Options Are Wrong
Option A: The following Friday
The following Friday would be 7 calendar days, not 3 business days. This is a simple calendar error that ignores the business-day counting rule.
Option B: Tuesday at midnight
Tuesday at midnight would be only 2 business days (Monday and Tuesday), one day short of the required 3-day period. The homeowner would still have one more business day to cancel.
Option D: Monday at midnight
Monday at midnight would be only 1 business day — the minimum possible reading. This severely shortens the consumer's statutory protection period.
Memory Technique
Friday signature + skip the weekend = Monday starts the clock. Count Monday (1), Tuesday (2), Wednesday (3) — done at midnight Wednesday. Write out the calendar when in doubt.
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?
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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass