Under B&P Code Section 7159, what is the minimum contract threshold that requires a written home improvement contract?
Correct Answer
B) $500
B&P Code Section 7159 requires written contracts for all home improvement work exceeding $500 in total cost.
Why This Is the Correct Answer
B&P Code Section 7159 requires a written home improvement contract for any work where the total cost of labor and materials exceeds $500. This consumer protection provision ensures homeowners have a clear written record of the scope of work and payment terms for even modest improvement projects.
Why the Other Options Are Wrong
Option A: $1,200
$1,200 is not the statutory threshold in Section 7159. It is higher than the actual $500 threshold and is not tied to a CSLB home improvement contract provision.
Option C: $1,000
$1,000 is double the actual threshold. Candidates who recall a round number may gravitate here, but the correct amount is $500 under Section 7159.
Option D: $200
$200 is below the actual threshold. While it might seem conservative from a consumer protection standpoint, the law sets the written contract requirement at $500.
Memory Technique
Five hundred dollars = Five hundred reasons to put it in writing. Both the licensing threshold and the written contract threshold are $500 — same number, same section range.
More California Questions
A Class C-10 electrical contractor has annual gross receipts of $3.2 million. What is the required bond amount under current California law?
Under B&P Code Section 7125.4, what is the fee for initial Home Improvement Salesperson registration?
According to B&P Code Section 7125, what is the maximum penalty the CSLB can impose for contracting without a license?
A home improvement contract for $8,500 requires a 3-day right to cancel notice. The contract is signed on Tuesday at 2 PM. When does the cancellation period expire?
A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?
A C-10 electrical contractor wants to perform plumbing work valued at $8,000 as part of a larger electrical project. Is this permissible under CSLB regulations?
A homeowner discovers that an unlicensed contractor performed $25,000 worth of work on their property. Under B&P Code Section 7031, what remedy is available to the homeowner?
A Class B general building contractor wants to perform electrical work valued at $750. According to the B&P Code, this contractor:
A contractor's qualifying individual leaves the company. How many days does the contractor have to replace them before the license becomes invalid?
According to B&P Code Section 7031, what happens to a contractor's right to payment if they perform work while unlicensed?
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
A Home Improvement Salesperson registration applicant has a misdemeanor conviction for petty theft from 3 years ago. How does this affect their registration eligibility?
Next Question
A contractor's workers' compensation policy lapses on March 15th. The contractor continues working with employees until March 30th when a new policy takes effect. What penalty applies?