For a swimming pool contract valued at $75,000 under B&P Code 7167, what is the maximum amount a contractor can demand as a down payment?
Correct Answer
C) $1,200
B&P Code 7167 specifically addresses swimming pool contracts and limits down payments to $1,200 or 10% of the contract price, whichever is less. For a $75,000 contract, 10% would be $7,500, but the statutory maximum of $1,200 applies to swimming pool contracts.
Why This Is the Correct Answer
B&P Code 7167 governs swimming pool contracts specifically and sets the down payment cap at $1,200 or 10% of the contract price, whichever is less. For a $75,000 pool contract, 10% = $7,500, but the statutory maximum of $1,200 applies, making the maximum allowable down payment $1,200.
Why the Other Options Are Wrong
Option A: $7,500
$7,500 is 10% of the $75,000 contract price, but the statute caps the down payment at $1,200 for swimming pool contracts. The 'whichever is less' rule means the lower $1,200 cap governs, not the 10% calculation.
Option B: $1,000
$1,000 is the down payment cap for general home improvement contracts under B&P Code 7159, not swimming pool contracts under 7167. Swimming pools have their own higher statutory cap of $1,200.
Option D: $2,500
$2,500 does not appear in B&P Code 7167 and is not a valid swimming pool down payment cap. It is a distractor designed to catch candidates who confuse various statutory dollar amounts.
Memory Technique
Remember: 'Pools get $1,200, houses get $1,000.' Swimming pool contracts under B&P 7167 have a $1,200 cap; general home improvement contracts under B&P 7159 have a $1,000 cap. The pool gets $200 more because it's a bigger specialized project.
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