Which of the following contracts would NOT be subject to the 3-day right to cancel under California law?
Correct Answer
D) A $4,000 HVAC installation contract signed at the contractor's showroom
Contracts signed at the contractor's established place of business are generally exempt from the 3-day cancellation right.
Why This Is the Correct Answer
Option D is correct. Under California's Home Solicitation Sales Act and Business and Professions Code Section 7159, the 3-day right of rescission applies to contracts signed away from the contractor's established place of business. A contract signed at the contractor's showroom — the contractor's permanent business location — is exempt from this cancellation right because the consumer voluntarily came to the contractor's place of business.
Why the Other Options Are Wrong
Option A: A $5,000 kitchen remodel contract signed at the homeowner's residence
Option A is subject to the 3-day cancellation right. A contract signed at the homeowner's residence is the classic home solicitation scenario — the consumer is on their own turf but may feel pressure from the in-home sales situation. California law specifically protects consumers in this scenario with the right to cancel within 3 days.
Option B: A $3,000 emergency roof repair contract for storm damage
Option B is subject to the 3-day cancellation right. Emergency repairs do not exempt a contractor from the cancellation notice requirements. Even when a homeowner urgently needs repairs, the contractor must provide written notice of the right to cancel unless the homeowner signs a written waiver of that right for genuine emergencies.
Option C: A $2,000 bathroom renovation contract signed at a home show
Option C is subject to the 3-day cancellation right. A contract signed at a home show or trade show is a location other than the contractor's established place of business, triggering the cancellation right. Public events and trade shows are treated the same as home solicitations for this purpose.
Memory Technique
The rule is simple: if the consumer CAME TO YOU at your permanent place of business, no cancellation right applies — they made the decision on neutral ground. If you went TO THEM, or met them anywhere else (their home, a fair, a hotel), the 3-day right applies. Think: 'your turf, your rules — their turf, their 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?
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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