Kev,
Here's what the California Vehicle Code has to say about horns:
"27000. (a) Every motor vehicle, when operated upon a highway, shall
be equipped with a horn in good working order and capable of
emitting sound audible under normal conditions from a distance of not
less than 200 feet, but no horn shall emit an unreasonably loud or
harsh sound. An authorized emergency vehicle may be equipped with,
and use in conjunction with the siren on that vehicle, an air horn
which emits sounds that do not comply with the requirements of this
section.
27001. (a) The driver of a motor vehicle when reasonably necessary
to insure safe operation shall give audible warning with his horn.
(b) The horn shall not otherwise be used, except as a theft alarm
system which operates as specified in Article 13 (commencing with
Section 28085) of this chapter. "
Nothing is said about horn location. I have my Grover's mounted on the back of the front frame crossmember. They are almost horizontal, with the bells oriented slightly downward to drain any water that might enter. No problems in more than two years. The Grover air tank fits inside of the left end of the front bumper.