Under B&P Code 7159, what is the maximum down payment a contractor may request on a home improvement contract with a total price of $8,000?
Correct Answer
A) $1,000 or 10% of the contract price, whichever is less
B&P Code 7159(a)(4) limits down payments on home improvement contracts to $1,000 or 10% of the contract price, whichever is less. On an $8,000 contract, 10% would be $800, but the maximum allowed is $1,000, so the contractor may request up to $800.
Why This Is the Correct Answer
B&P Code 7159(a)(4) limits down payments on home improvement contracts to $1,000 or 10% of the contract price, whichever is less. On an $8,000 contract, 10% would be $800, but the maximum allowed is $1,000, so the contractor may request up to $800.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
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
Related Study Resources
Previous Question
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
Next Question
When calculating overhead costs for bidding purposes in California, which of the following would be classified as indirect overhead rather than direct job costs?