CSLB Law & Business ExamContract Requirements and ExecutionMedium
A homeowner visits a contractor's retail showroom and signs a home improvement contract for a bathroom remodel at the contractor's place of business. Does the homeowner still have the three-day right to cancel?
- ANo, because the homeowner initiated the visit to the contractor's business
- BYes, California's three-day right to cancel applies to home improvement contracts regardless of where they are signed
- CNo, the right to cancel only applies to contracts signed in the homeowner's home
- DYes, but only if the contract price exceeds $10,000
Show answer & explanationAnswer & explanation
Correct answer: B. Yes, California's three-day right to cancel applies to home improvement contracts regardless of where they are signed
Unlike the general Home Solicitation Sales Act, California's home improvement contract law grants the three-day right to cancel to all home improvement contracts regardless of the location where the contract is signed, including at the contractor's place of business.
Why the other options are wrong
- A. Who initiated the visit is irrelevant to the cancellation right under HIC law.
- C. Incorrect; location of signing does not eliminate the right under HIC law.
- D. There is no dollar threshold exception for this right.
Location-Independent Cancellation Right
The three-day right to cancel applies to home improvement contracts no matter where the contract was signed, unlike general door-to-door sales law.
- Applies at showrooms, offices, or homes
- No dollar threshold exception
- Distinguishes HIC law from general Home Solicitation Sales Act
Memory trick: Anywhere signed, three days remain.