Housing and Community Development (HCD) Practice Exam

Where must the warranty provisions be displayed according to California Civil Code?

1. In each area where purchase orders and conditional sales contracts are written

2. Inside each manufactured home on display

3. In the dealer's advertising materials

4. During any scheduled meetings with buyers

The correct answer is: In each area where purchase orders and conditional sales contracts are written

The correct answer is rooted in the requirements specified in California Civil Code regarding the disclosure of warranty provisions. According to the law, warranty information must be clearly presented in the spaces where purchase orders and conditional sales contracts are prepared. This ensures transparency for buyers at the point of sale, allowing them to understand the terms and conditions of any warranties associated with their purchase before they finalize their transaction. Displaying warranty provisions in this way serves to protect consumers by ensuring they have access to important information regarding their rights and the seller's obligations. It also establishes a standard procedure that dealers must follow, contributing to fair business practices within the housing industry. Other options, such as displaying warranty provisions inside each manufactured home or in dealer advertising materials, may lack the direct connection to the purchase process that the law aims to emphasize. Similarly, discussing warranties during meetings with buyers may not guarantee that all buyers receive the necessary information in a documented and clear manner, which is vital for legal compliance and consumer protection.