CSLB Law & Business ExamContract Requirements and ExecutionHard
A homeowner calls a contractor and asks the contractor to come immediately to fix a broken window latch. The contractor arrives, the homeowner signs a service and repair contract for $180, and the work is completed during that same visit. Which statement best describes the homeowner's cancellation rights?
- AThe homeowner may cancel only within 24 hours of signing
- BThe contractor must still provide two Notices of Cancellation despite the exemption
- CThis transaction is exempt from the three-day right to cancel because the buyer initiated the request for a specific repair completed immediately
- DThe homeowner has three business days to cancel, exactly like any home improvement contract
Show answer & explanationAnswer & explanation
Correct answer: C. This transaction is exempt from the three-day right to cancel because the buyer initiated the request for a specific repair completed immediately
California law exempts certain buyer-initiated service or repair transactions from the three-day right to cancel when the buyer specifically requests the service, no additional goods or services beyond the request are sold, and the work is performed and completed at that same visit.
Why the other options are wrong
- A. There is no separate 24-hour cancellation rule for this situation.
- B. If exempt, Notices of Cancellation are not required to be provided.
- D. This scenario meets the exemption criteria, so the standard cancellation right does not apply.
Buyer-Initiated Repair Exemption
A service/repair transaction is exempt from the three-day right to cancel when the buyer initiates the specific repair request and the work is completed during that same visit without additional solicitation.
- Buyer must initiate the specific request
- No additional goods/services solicited
- Work completed same visit qualifies for exemption
Memory trick: You called, they fixed it same day — no cancel needed.