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Hi DealerXT community, its Ali R. here. Weve seen a number of lawsuits and demand letters in California that are accusing dealerships of using the incorrect contract cancellation option agreements and that parts of those agreements are not compliant with the law. These demand letters are coming from all across the state of California weve provided you in this email with a quick chart that summarizes the California Vehicle Code which is specifically outlining the law when it comes to contract cancellation option agreements in your chart you will see the purchase prices for contract cancellation option agreements. If the vehicle cash price is $5,000 or less the purchase price cannot exceed $75. Youll see that based on the purchase price of the vehicle the contract cancellation option price is also listed there for your reference that cash price does not include things like the document processing charges taxes and other such fees that are listed in the email and also in the code sect