CSLB Law & Business ExamContract Requirements and ExecutionMedium
A homeowner signs a home improvement contract for a room addition on Friday, June 6. Under the three-day right to cancel, and assuming Saturday counts as a business day, by what date and time must the homeowner deliver a notice of cancellation to rescind the contract?
- AMidnight Sunday, June 8
- BMidnight Monday, June 9
- CMidnight Saturday, June 7
- DMidnight Tuesday, June 10
Show answer & explanationAnswer & explanation
Correct answer: D. Midnight Tuesday, June 10
The three-business-day cancellation period excludes Sundays and legal holidays but includes Saturdays. Counting from Friday, June 6, the three business days are Saturday (6/7), Monday (6/9), and Tuesday (6/10), so the deadline is midnight on Tuesday, June 10.
Why the other options are wrong
- A. Sunday does not count as a business day.
- B. This is only the second business day counted.
- C. This is only the first business day, not the full three-day period.
Three-Day Right to Cancel Counting
The right-to-cancel period runs for three business days after signing, counting Saturdays but excluding Sundays and legal holidays.
- Federal and state law both use business days, not calendar days
- Sundays and holidays never count
- Deadline is midnight of the third business day
Memory trick: Skip Sunday, count the rest — three business days is the test.