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Contractor Exam Practice
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Question 1 of 130
1. Business Organization & Licensing
Exit Practice
A homeowner signs a contract but asks the contractor to start work two days later (during the 3-day cancellation period). The contractor rips out the kitchen cabinets, and on the 3rd day, the homeowner exercises their right to cancel. What happens?
A
The homeowner owes the contractor exactly 50% of the contract value
B
The contract is entirely void. The contractor must return all money, cannot demand payment for the demo, and must restore the kitchen to its original condition at their own expense
C
The homeowner is arrested for fraud
D
The contractor is allowed to keep the down payment but must stop work
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