Under B&P Code 7159.5, service and repair contracts must be in writing when the total cost exceeds what amount?
Correct Answer
D) $750
B&P Code 7159.5 requires written contracts for service and repair work exceeding $750.
Why This Is the Correct Answer
B&P Code 7159.5 specifically sets $750 as the threshold above which service and repair contracts must be in writing. This protects consumers by ensuring that all significant repair work is documented with clear terms before work begins.
Why the Other Options Are Wrong
Option A: Service contracts are exempt from writing requirements
Service contracts are NOT exempt from writing requirements. California law specifically extends written contract requirements to service and repair work to protect homeowners from disputes over scope and price.
Option B: $1,000
$1,000 is the threshold for written contracts under the general home improvement contract rules for some other provisions, not the specific threshold in B&P 7159.5 for service and repair contracts. The actual threshold is $750.
Option C: $500
$500 is below the actual threshold. While it might seem like a reasonable consumer protection amount, the legislature set the threshold at $750 for service and repair contracts under B&P 7159.5.
Memory Technique
Think '7-5-0 for 7159.5': the section number 7159.5 contains the digits that remind you the threshold is $750. Or remember: 'Seven Fifty for Service' — B&P 7159.5 = $750.
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