A service call for HVAC repair results in $950 of work. The technician provides a handwritten invoice but no formal contract. This arrangement:
Correct Answer
C) Violates B&P Code 7159.5 written contract requirements
B&P Code 7159.5 requires written contracts for service and repair work exceeding $750. At $950, this work requires a formal written contract, not just an invoice.
Why This Is the Correct Answer
B&P Code 7159.5 requires a written contract (not merely an invoice) for service and repair work when the total cost exceeds $750. At $950, a formal written contract is legally required. An invoice documents work done but does not satisfy the statutory contract requirements (e.g., right to cancel notice, itemized pricing, license number disclosures).
Why the Other Options Are Wrong
Option A: Requires a formal contract due to the service nature
B&P 7159.5 — not 7159 (which covers home improvement) — governs service and repair work. The 'service nature' of the work is irrelevant as the deciding factor; the dollar threshold ($750) is what triggers the written contract requirement.
Option B: Is acceptable since the work is under $1,000
This is a common trap. The $1,000 figure does not appear in B&P 7159.5 as the threshold for service/repair contracts. The actual threshold is $750, so $950 exceeds it and requires a written contract.
Option D: Is valid but limits the contractor's lien rights
Lien rights are governed separately. The absence of a written contract primarily violates the consumer protection provisions of B&P 7159.5 — it is not simply a lien limitation issue.
Memory Technique
7159.5 = Service & Repair. The '.5' reminds you this is the 'extra' rule for repairs. And $750 — think '750 horsepower HVAC' — once you hit that number for any repair, you need the paperwork.
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
Related Study Resources
Previous Question
A contractor completes $25,000 of electrical work on March 15th. The property owner fails to pay. What is the deadline for the contractor to record a mechanics lien under California Civil Code?
Next Question
A preliminary notice for mechanics lien purposes must be served within how many days of first providing labor or materials?