Under Business and Professions Code Section 7159.10, which of the following contracts requires a Home Improvement Contractor (HIC) to provide a three-day right to cancel?
Correct Answer
C) A $15,000 kitchen remodel contract negotiated and signed at the homeowner's residence
B&P Code Section 7159.10 requires a three-day right to cancel for home improvement contracts when the contract is solicited and signed at the buyer's residence. Contracts signed at the contractor's established place of business, emergency repairs, and commercial work are generally exempt from this requirement.
Why This Is the Correct Answer
B&P Code Section 7159.10 requires a three-day right to cancel for home improvement contracts that are solicited and signed at the buyer's (homeowner's) residence. A $15,000 kitchen remodel negotiated and signed at the home qualifies on both counts — it is a residential improvement contract signed at the owner's residence. This cooling-off period protects consumers from high-pressure in-home sales tactics.
Why the Other Options Are Wrong
Option A: Contracts for work on commercial properties only
Section 7159.10 applies to residential, not commercial, property. Home improvement contracts on commercial properties do not trigger the three-day cancellation right. The statute is specifically designed to protect homeowners.
Option B: Emergency repair work performed after a natural disaster
Emergency repair work is a recognized exemption to the three-day cancellation requirement. When immediate action is needed to protect life or property, requiring a waiting period is impractical and the law does not impose one.
Option D: Any home improvement contract signed at the contractor's established place of business
Contracts signed at the contractor's established place of business are exempt from the three-day cancellation requirement under Section 7159.10. The rationale is that the homeowner voluntarily went to the contractor's office, reducing the concern about high-pressure in-home solicitation.
Memory Technique
Three-day rule = signed at the HOME. If the homeowner opened their door and the contractor got the signature there, the homeowner gets 3 days to change their mind. 'Home-signed = homeowner protected.' Signed at the contractor's office = homeowner chose to go there = no mandatory cancellation right.
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