Under California law, which of the following contracts allows for progress payments during the work?
Correct Answer
B) Home improvement contracts under B&P 7159
Home improvement contracts under B&P 7159 allow progress payments, while service/repair and swimming pool contracts have more restrictive payment terms.
Why This Is the Correct Answer
Business and Professions Code Section 7159 governs home improvement contracts and explicitly permits contractors to collect progress payments tied to specific stages of work. The statute sets out a framework for installment payments based on completion milestones, making it the correct contract type that allows progress payments.
Why the Other Options Are Wrong
Option A: Swimming pool construction contracts
Swimming pool construction contracts are subject to strict payment restrictions under B&P 7159.5 and related regulations. California law specifically limits how much can be collected upfront for pool contracts and restricts the payment schedule more tightly than general home improvement contracts to protect consumers from contractors who take large deposits and abandon projects.
Option C: Service and repair contracts under B&P 7159.5
Service and repair contracts under B&P 7159.5 are more restrictive than home improvement contracts. They are designed for smaller, shorter-duration work and have stricter limits on advance payments, generally not allowing the same progress payment structure available under B&P 7159.
Option D: Emergency repair contracts
Emergency repair contracts operate under different rules due to their urgent nature. While they may have relaxed requirements in other respects (e.g., written contract delivery timing), they are not specifically the category that 'allows' progress payments in the structured milestone-based sense that B&P 7159 home improvement contracts do.
Memory Technique
Think of '7159' as the 'home improvement number' — it's the main section for larger residential improvement projects and allows the contractor to bill as the job progresses. Section 7159.5 with the '.5' suffix covers smaller service/repair jobs with tighter payment rules. Bigger job = 7159 = progress payments allowed.
More California Questions
A homeowner signs a $15,000 home improvement contract on Monday at 2 PM at the contractor's office. Under California law, what is the latest time the homeowner can cancel the contract without penalty?
A swimming pool contract for $28,000 is signed on Wednesday at the customer's home. The contract includes proper cancellation notices. If the customer wants to cancel, they must do so by when?
Under California's prompt payment law, if a contractor submits a proper payment request to a property owner, payment is due within how many days?
A general contractor hires a subcontractor for $22,000. The general contractor receives payment from the owner but fails to pay the subcontractor within how many days, subjecting themselves to penalty interest?
Under California Civil Code Section 8180, when must a subcontractor serve a preliminary notice on a private work project?
Which of the following contracts is NOT subject to the 3-day right to cancel under California law?
A subcontractor completes roofing work on Tuesday, March 15th. The general contractor is paid by the owner on Friday, March 25th. Under California prompt payment laws, what is the latest date the general contractor must pay the subcontractor?
A contractor receives a progress payment of $18,000 from a property owner on Monday. The contractor owes subcontractors $12,000 of this amount. By what day must the contractor pay the subcontractors?
A swimming pool contractor enters into a $45,000 contract to install an in-ground pool. The contract includes a $5,000 down payment. What is the maximum down payment the contractor can legally collect under California law?
A contractor completes $15,000 worth of electrical work on a commercial building. The property owner disputes $3,000 of the charges. Under California prompt payment law, what amount must the owner pay within the required timeframe to avoid penalties?
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