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A repair shop provides a written estimate of $850 for transmission work. The actual repair costs $1,100. What is required under B&P Code 7159.5?

Correct Answer

B) Shop must obtain customer authorization before exceeding the estimate by more than $100 or 10%

B&P Code 7159.5 requires customer authorization before charges can exceed the written estimate by more than $100 or 10%, whichever is less.

Answer Options
A
Customer must pay the full $1,100 since they signed the estimate
B
Shop must obtain customer authorization before exceeding the estimate by more than $100 or 10%
C
Shop can only charge $850 as originally estimated
D
Shop can charge up to 20% more than the estimate without authorization

Why This Is the Correct Answer

B&P Code 7159.5 requires customer authorization before charges can exceed the written estimate by more than $100 or 10%, whichever is less.

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