Which of the following contracts would be subject to the 3-day right to cancel?
Correct Answer
A) A contract signed at the homeowner's residence
The 3-day right to cancel applies to home improvement contracts signed at the buyer's residence or other locations away from the contractor's business.
Why This Is the Correct Answer
The 3-day right to cancel (right of rescission) applies when a home improvement contract is signed at the buyer's residence or any location other than the contractor's permanent place of business. A contract signed at the homeowner's home is the classic trigger for this right.
Why the Other Options Are Wrong
Option B: An emergency repair contract for a burst pipe
Emergency repair contracts are explicitly exempt from the 3-day right to cancel. When a homeowner faces an immediate threat to health or safety (like a burst pipe) and waives the right in writing, cancellation rights do not apply.
Option C: A contract for work on commercial property
The 3-day right to cancel under B&P Code 7159 applies to residential home improvement contracts, not commercial property contracts. Commercial work is not covered by this consumer-protection provision.
Option D: A contract signed at the contractor's office
If the contract is signed at the contractor's office or permanent place of business, the right to cancel does NOT apply. The law is designed to protect homeowners from high-pressure sales tactics at their own home.
Memory Technique
Location is the key: if the contract is signed IN the home, the homeowner can change their mind. Think of it as 'home territory = home advantage (right to cancel).'
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?
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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?
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