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Under B&P Code Section 7159, what is the maximum down payment a contractor can collect for a home improvement contract valued at $2,000?

Correct Answer

A) $1,000

B&P Code Section 7159 limits down payments to the lesser of $1,000 or 10% of the contract price. 10% of $2,000 = $200, but the $1,000 limit applies.

Answer Options
A
$1,000
B
$600
C
$2,000
D
$200

Why This Is the Correct Answer

B&P Code Section 7159 limits down payments to the lesser of $1,000 or 10% of the contract price. 10% of $2,000 = $200, but the $1,000 limit applies.

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