CSLB Contract Law and Dispute Resolution

Question 1

Under California law, a written home improvement contract is required for projects exceeding what dollar amount?

Accepted Answer

$750

Answer

$200

Answer

$500

Answer

$1,000

Question 2

What is the maximum down payment a contractor may legally collect from a homeowner at the start of a home improvement project in California?

Accepted Answer

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

Answer

5% of the contract price or $200, whichever is less

Answer

20% of the contract price

Answer

25% of the contract price

Question 3

A California mechanic's lien must be filed within how many days after project completion for a direct contractor?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

120 days

Question 4

Before recording a mechanic's lien, a subcontractor or supplier must first serve a:

Accepted Answer

Preliminary Notice (20-day notice)

Answer

Notice of Intent to Lien

Answer

Stop Payment Notice

Answer

Notice of Nonresponsibility

Question 5

Which clause in a construction contract allows the owner to direct the contractor to perform additional work beyond the original scope?

Accepted Answer

Changes clause

Answer

Indemnification clause

Answer

Termination for convenience clause

Answer

Liquidated damages clause

Question 6

In California, a homeowner has the right to cancel a home improvement contract (3-day right of rescission) if:

Accepted Answer

The contract was signed at the owner's home

Answer

The contract was solicited at the contractor's place of business

Answer

The project exceeds $10,000

Answer

The contractor does not provide a bond certificate