For service and repair contracts under B&P Code 7159.5, what is the maximum amount for which a contractor may perform work without a written contract?
Correct Answer
A) $500
B&P Code Section 7159.5 requires written contracts for all service and repair work exceeding $500. For work $500 or less, contractors may proceed with oral agreements, but must still provide proper documentation including proof of licensing and detailed invoicing upon completion.
Why This Is the Correct Answer
B&P Code Section 7159.5 sets $500 as the written contract threshold for service and repair work. For jobs priced at $500 or less, a contractor may proceed on an oral agreement. Once the price exceeds $500, a written contract with all required disclosures is mandatory. This threshold is a frequently tested number — memorize it as the bright-line rule.
Why the Other Options Are Wrong
Option B: $750
$750 is a distractor — there is no $750 threshold in B&P Code 7159.5. This number does not appear in any standard contractor licensing threshold and exists only to confuse students who are unsure of the exact figure.
Option C: $1,500
$1,500 is associated with the general home improvement contract threshold under B&P Code 7159 (combined labor and materials triggering written contract requirements), not the service and repair threshold under 7159.5. Mixing these two statutes is a common error.
Option D: $1,000
$1,000 is another plausible-sounding distractor. While $1,000 appears in some consumer protection thresholds in other contexts, it is not the correct figure for service and repair contracts under 7159.5.
Memory Technique
Associate $500 with '7159.5' — the decimal (.5) hints at the sub-statute for service/repair. Think: 'Service calls under five hundred bucks? You can skip the written contract.' Five hundred dollars, five-digit code 7159.5.
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For service and repair contracts under B&P Code 7159.5, what is the maximum amount for which a contractor can perform work without a written contract?
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