An Arizona residential contractor enters into a contract for $35,000 to build a detached garage. Under A.R.S. Title 32, what is the required cancellation period the homeowner must be given?
Correct Answer
C) 5 calendar days
Arizona law requires residential contractors to provide a 5-calendar-day right of cancellation for contracts over $25.
Why This Is the Correct Answer
Arizona law (A.R.S. Title 32) mandates a 5-calendar-day right of cancellation for residential contractor contracts exceeding $25. This gives homeowners a meaningful window to reconsider without being locked in immediately after signing.
Why the Other Options Are Wrong
Option A: 7 calendar days
7 calendar days is not the Arizona standard; this number might be confused with federal FTC cooling-off rules or rules in other states. Arizona specifically sets 5 calendar days for residential contracts.
Option B: 24 hours
24 hours is far too short and has no basis in A.R.S. Title 32. A 24-hour window would provide almost no meaningful consumer protection, which is contrary to the intent of the statute.
Option D: 3 business days
3 business days originates from the federal FTC 'cooling-off rule' for door-to-door sales over $25. While plausible, Arizona residential contractor law specifically uses calendar days (not business days) and sets the period at 5 days, not 3.
Memory Technique
Think '5 on the calendar' — Arizona gives homeowners a full work-week (5 days) to cancel, and it counts every calendar day, not just business days.
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A residential project has a total contract value of $125,000. A subcontractor completes $18,500 worth of work and files a proper preliminary notice. The general contractor has been paid in full by the owner but fails to pay the subcontractor. What is the maximum lien amount the subcontractor can claim against the property?