CSLB Law & Business ExamContract Requirements and ExecutionHard
A homeowner properly exercises the 3-day right to cancel a home improvement contract. Before cancellation, the contractor had already delivered building materials to the home. Under California law, what is the homeowner's obligation regarding those materials?
- APay the contractor the wholesale value of the materials before the cancellation becomes effective
- BMake the materials available for the contractor to retrieve at the residence, in substantially the same condition received
- CShip the materials back to the contractor's place of business at the homeowner's own expense
- DKeep the materials without any obligation to the contractor once cancellation is exercised
Show answer & explanationAnswer & explanation
Correct answer: B. Make the materials available for the contractor to retrieve at the residence, in substantially the same condition received
Upon proper cancellation, the homeowner is not obligated to return goods to the contractor's place of business or pay for them; instead, the homeowner must make the delivered materials available at the residence for the contractor to pick up, in substantially the condition received.
Why the other options are wrong
- A. Payment is not required to make an otherwise valid cancellation effective.
- C. The homeowner is not required to ship materials back or bear shipping costs.
- D. The homeowner does have an obligation to make materials available for pickup.
Homeowner's Duty After Cancellation Regarding Goods
After a valid cancellation, the homeowner must make any delivered materials available for the contractor to pick up at the residence, but has no duty to ship or pay for them.
- Homeowner is not required to transport goods
- Goods must be kept in substantially received condition
- Contractor is responsible for retrieval
Memory trick: Leave it at the door, the contractor comes to get it.