CSLB Law & Business ExamContract Requirements and ExecutionMedium
A homeowner decides to cancel a home improvement contract on the third business day after signing. Under California law, how must the homeowner exercise this right?
- ABy giving written notice of cancellation to the contractor before midnight of the third business day
- BBy personally appearing at the contractor's office before 5 p.m.
- CBy notifying the CSLB directly instead of the contractor
- DBy calling the contractor's insurance company
Show answer & explanationAnswer & explanation
Correct answer: A. By giving written notice of cancellation to the contractor before midnight of the third business day
California law requires the homeowner to provide written notice of cancellation to the contractor before midnight of the third business day following contract signing. This can be done using the detachable Notice of Cancellation form provided at signing.
Why the other options are wrong
- B. Personal appearance is not required; written notice by any method is sufficient.
- C. Notice must go to the contractor, not the CSLB, to be effective.
- D. Contacting an insurance company has no bearing on exercising cancellation rights.
Exercising the Right to Cancel
Homeowners must provide written notice of cancellation to the contractor by midnight of the third business day after signing.
- Written notice required
- Deadline is midnight of day 3
- Detachable Notice of Cancellation form may be used
Memory trick: Midnight deadline, written and delivered