CSLB Law & Business ExamContract Requirements and ExecutionEasy
A homeowner is reviewing a home improvement contract before signing. Under California law, which of the following must appear on the face of the contract?
- AThe contractor's license number
- BThe homeowner's bank account number
- CThe contractor's Social Security number
- DThe contractor's personal home address only
Show answer & explanationAnswer & explanation
Correct answer: A. The contractor's license number
California law (Business and Professions Code Section 7159) requires that the contractor's license number be printed on every home improvement contract. This allows homeowners to verify the contractor's license status with the CSLB. Personal financial or identifying information such as a Social Security number is not a required disclosure.
Why the other options are wrong
- B. The homeowner's bank account number has nothing to do with contract requirements.
- C. Social Security numbers are not required or appropriate on a home improvement contract.
- D. A business address may be required, but a personal home address alone is not the mandated disclosure.
License Number Disclosure
Every home improvement contract must display the contractor's CSLB license number so the homeowner can verify licensure.
- Required under B&P Code 7159
- Helps homeowners confirm active license status
- Missing license number is a contract violation
Memory trick: License number = the contractor's ID badge on paper