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?
Correct Answer
B) $500
B&P Code 7159.5 requires written contracts for all service and repair work exceeding $500. Work valued at $500 or less may be performed with oral agreements, but written contracts are still recommended for documentation and dispute prevention purposes.
Why This Is the Correct Answer
B&P Code 7159.5 requires written contracts for all service and repair work valued at more than $500. Work at or below $500 may be performed under an oral agreement. The $500 threshold is a hard statutory limit — any work exceeding this amount requires a written contract.
Why the Other Options Are Wrong
Option A: $750
$750 is not the correct threshold under B&P Code 7159.5. This figure may be confused with the general small claims limit or other code thresholds. The service and repair written contract threshold is specifically $500.
Option C: $1,500
$1,500 is not the threshold for service and repair contracts. Candidates may confuse this with home improvement contract thresholds or other B&P Code provisions.
Option D: $1,000
$1,000 is not the threshold for service and repair contracts. It is a common distractor because $1,000 appears in other B&P Code 7159 provisions (specifically as the down payment cap for home improvement contracts).
Memory Technique
Think '$500 = paperwork starts' for service and repair. A simple way to remember: five hundred dollars is when you need the five-hundred-word written agreement. Any job worth more than a $500 bill needs a written contract.
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A qualifying individual for a contractor's license who is replaced or removed must have their bond of what amount filed with the CSLB according to Business and Professions Code Section 7071.8?
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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?