A swimming pool contractor's contract includes a clause stating 'No cancellation allowed once permits are pulled.' This clause is:
Correct Answer
D) Void and unenforceable
Any contract provision that waives the consumer's 3-day right to cancel is void and unenforceable under California law.
Why This Is the Correct Answer
Under California Business and Professions Code Section 7159 and Civil Code Section 1689.5, consumers have a statutory 3-day right to cancel home improvement contracts. Any contract provision that attempts to waive or limit this right — including one tied to permit issuance — is void and unenforceable as a matter of law. Pulling permits does not extinguish the consumer's cancellation rights.
Why the Other Options Are Wrong
Option A: Valid and enforceable
The clause is not valid and enforceable. California law expressly prohibits contractors from including provisions that waive the consumer's 3-day cancellation right. No contract term, regardless of how it is worded, can override this statutory protection.
Option B: Valid only for contracts over $5,000
There is no threshold (such as $5,000) above which cancellation rights can be waived. The 3-day right of rescission under California law applies to home improvement contracts generally, and no monetary threshold eliminates the consumer's right to cancel.
Option C: Valid only if in 12-point bold type
Font size, boldness, or formatting requirements relate to other disclosure obligations in contractor agreements (e.g., the notice of cancellation must appear in 10-point bold type). However, formatting does not make an otherwise illegal waiver-of-cancellation clause valid — the clause is void regardless of how it is printed.
Memory Technique
3 days to cancel = the contractor cannot cancel that right. 'No cancellation' clauses = automatically void. Remember: in California, the consumer always gets 3 days, no matter what milestone the contractor uses as a trigger.
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