C27 License Business Practices and Contract Law 1

Question 1

Under California law, what is the maximum deposit a contractor may collect from a homeowner at the start of a home improvement project?

Accepted Answer

10% of the contract price or $1,000, whichever is less

Answer

California Business and Professions Code Section 7159.5 limits contractor deposits to 10% of the contract price or $1,000, whichever is less, to protect consumers.

Question 2

Which document must a California contractor provide to a homeowner before starting a home improvement project?

Accepted Answer

A written contract that includes a three-day right to cancel notice

Answer

California law requires contractors to provide a written contract including a Notice of the Three-Day Right to Cancel before beginning any home improvement work.

Question 3

What is the 'right to cure' provision in California contractor law?

Accepted Answer

The contractor's right to fix alleged defective work before the homeowner can pursue legal action

Answer

The right to cure allows a contractor to repair or remedy alleged construction defects before the homeowner can pursue a lawsuit or arbitration.

Question 4

When must a California contractor include a Mechanics Lien Warning in a home improvement contract?

Accepted Answer

For all home improvement contracts regardless of the contract amount

Answer

California law requires a Mechanics Lien Warning in every home improvement contract to inform homeowners that their property may be subject to liens if subcontractors or suppliers are not paid.

Question 5

What must a C-27 contractor do if a project requires work outside the scope of the landscaping license?

Accepted Answer

Hire a licensed contractor holding the appropriate classification for that work

Answer

Contractors must subcontract work outside their licensed classification to a contractor holding the appropriate license — performing out-of-scope work is a license violation.

C27 License - C-27 Landscaping Contractor License Practice Test

C27 License - C-27 Landscaping Contractor License Practice Test

C27 License Business Practices and Contract Law 1