CSLB Contractor's Law & Business Practice Exam

What is the last day a customer can cancel a contract signed on a Friday?

1. The following Tuesday

2. The following Wednesday

3. The following Saturday

4. The following Monday

The correct answer is: The following Wednesday

In California, consumers have a statutory three-day right of rescission for certain contracts, notably for goods and services sold outside of a seller's usual place of business. This means they can cancel the contract within three business days without penalty. If a contract is signed on a Friday, the count of business days for cancellations would begin on the next business day, which is Monday. Therefore, the three business days would extend from Monday to Wednesday. The customer would need to cancel by the end of the day on Wednesday; thus, Wednesday is indeed the last day the customer can cancel without any penalty. It’s important to note that Saturdays and Sundays are not considered business days, and if a cancellation is attempted on such days, it would not be recognized. Therefore, other options such as Saturday and the following Tuesday do not align with the calculation of business days in this context.