Which statement about service and repair contracts under B&P Code 7159.5 is correct?
Correct Answer
A) Written estimates are required for repair work estimated to cost $750 or more
B&P Code 7159.5 requires written estimates for service and repair work estimated to cost $750 or more.
Why This Is the Correct Answer
B&P Code Section 7159.5 specifically requires that contractors provide written estimates for service and repair work that is estimated to cost $750 or more. This threshold triggers the formal written estimate requirement to protect consumers from unexpected charges on significant repair jobs.
Why the Other Options Are Wrong
Option B: No estimate requirements exist for emergency repairs
Emergency repairs are not categorically exempt from estimate requirements under B&P 7159.5. While practical limitations may apply, the law does not create a blanket exception for all emergency work. Claiming no requirements exist for emergencies is an overstatement not supported by the code.
Option C: Oral estimates are sufficient for all repair work under $750
Oral estimates are not 'sufficient for all repair work under $750' as a general rule. While the written estimate requirement triggers at $750, this answer implies oral estimates are always acceptable below that threshold, which mischaracterizes the contractor's full legal obligations under related consumer protection laws.
Option D: Written estimates are required for all repair work over $100
$100 is not the threshold established by B&P Code 7159.5. The correct trigger is $750. This distractor tests whether candidates know the specific dollar amount, which is a commonly tested figure on the California contractor exam.
Memory Technique
Associate $750 with '7-5-0 — write it, show it, go.' At $750 the contractor must write up a formal estimate before starting repair work. Think of 7-5-0 as a countdown to getting the written document in the homeowner's hands.
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?
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 homeowner makes a $2,500 down payment on a $18,000 bathroom remodel contract. The next day, they exercise their right to cancel. The contractor has already ordered $800 worth of custom tile. How much must the contractor refund?
Next Question
A contractor quotes $8,200 for kitchen remodeling work. The homeowner agrees and wants to start immediately. What must the contractor do before beginning work?