CSLB Law & Business ExamContract Requirements and ExecutionHard

Under California law, when may a contractor begin work on a home improvement project after the contract has been signed?

  1. AAfter collecting the full contract price from the homeowner
  2. BAfter receiving verbal permission from any adult family member of the homeowner
  3. CImmediately after signing, regardless of the cancellation period
  4. DOnly after the three-business-day cancellation period has expired, unless it is validly waived
Show answer & explanation

Correct answer: D. Only after the three-business-day cancellation period has expired, unless it is validly waived

Contractors must generally wait until the three-business-day cancellation period has expired before beginning work or supplying materials, unless the homeowner validly waives the right (such as for a bona fide emergency). This protects the homeowner's statutory right to cancel without losing money on started work.

Why the other options are wrong

  • A. Full payment upfront exceeds legal down payment limits and is unrelated to timing rules.
  • B. A family member's verbal permission has no legal bearing on contract timing rules.
  • C. Beginning work immediately would undermine the homeowner's cancellation right.

Timing of Work Commencement

Contractors must wait until the 3-business-day cancellation period expires before starting work, unless validly waived.

  • Protects homeowner's cancellation right
  • Waiver allowed only for genuine emergencies
  • Starting early risks violating consumer protection law

Memory trick: Wait three days before the first nail

More Contract Requirements and Execution questions