2024 MHIC NASCLA CONTRACTORS EXAM REVIEW 100% SOLVED, Exams of Social Contract Theory

Download 2024 MHIC NASCLA CONTRACTORS EXAM REVIEW 100% SOLVED and more Exams Social Contract Theory in PDF only on Docsity! 1 / 26 2024 MHIC NASCLA CONTRACTORS EXAM REVIEW 100% SOLVED  Yes: Does home improvement include work done on an individual condominium unit?  Yes: Does home improvement include work done on a swimming pool?  Yes: Does a home improvement contract HAVE to be in writing in order to preserve your lien rights?  Subcontractors: Contractors who can only contract with a contractor or a sub- contractor are:  Cannot: A county or municipality in Maryland require a contrac- tor to get authorization from an official in that city to be able to contract in that municipality.  Can: A county or municipality in Maryland regulate the char- acter, performance and quality of home improvement.  7: How many members are there in the Maryland Home Improvement Commis- sion?  3: Of the 7 members on the Commission, how many are experienced in home improvement?  4 Years: What is the term of a member on the Commission? Associated Answers  5 years: How long must a person be a citizen and member of Maryland before they can be appointed to the Commission?  True: It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission. 2 / 26  12 times a year: How often does the Commission hold meetings at a minimum?  Executive Director: The is a full time employee of the State.  the Director of the Commission: People hired to investigate complaints about home improvement projects work under:  1. injunctive relief against the conduct 2. an order for satisfactory completion 3. restitution: If the Commission decides to sue a contractor because they believe that the contractor has or will cause harm to another person, they can sue for:  yes: Can the Commission request financial records at any time?  yes: Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license?  yes: Can the Commission take disciplinary action against an inactive license?  10 days: How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name?  2: How many contractors may a salesperson represent?  both a and b: The following are exempt from licensure requirements: Associated Answers 5 / 26 2 practices fraud while being licensed 3 is convicted of a felony 4 all of the above  True: A contractor may not pay a subcontractor who is required to be licensed unless the subcontractor holds the required license.  False: Licensed Home Improvement Contractors are also required to hold a construction license issued by the Clerk of the Court under Title 17.  actual loss: Home owners have a right to bring a claim against the Guaranty Fund for situations of concerning restoration, repair, replacement or completion that arise from unworkmanlike, inadequate, or incom- plete home improvement.  $100: What is the fee a Home Improvement Contractor must pay into the Guaranty Fund before the Commission will issue a license?  $20,000.00: What is the maximum amount of money the Commission will award to any one claimant from the Guaranty Fund?  $100,000.00: What is the maximum amount of money the Commission will pay out of the fund concerning the affairs of any one contractor?  No: Can a person bring a claim against the Guaranty Fund in a contract he has with the 6 / 26 employer of his son?  3 years from discovery of the loss or damage: How long does a claimant have to bring a claim against the Guaranty Fund?  10 days: How many days does a contractor have to respond in writing to the copy of a claim that was sent by the Commission?  Yes: Can a disciplinary hearing and a hearing concerning a claim against the Guaranty Fund be held at the same time if the facts in this situation are the same?  30 days: If within after the Commission gives notice, a contractor on whose account a claim was paid does not reimburse the fund in full, the Commission may sue the contractor for reimbursement.  10 percent: In addition to full reimbursement of the fund, a contractor is respon- sible to pay at least interest on the amount to reimburse.  True: The state can record a lien against any real property owned by the contractor for a debt owed to the fund.  True: If the Commission pays a claim from the Fund based on the actions or omissions of a contractor, the Commission may suspend the contractor's license until full reimbursement of the Fund plus at least 10% interest.  Names and license numbers of subcontractors: A home improvement con- tract in compliance with the home improvement laws would include all of the following except: 7 / 26  True: A salesperson may not represent 2 contractors at the same time for the same project.  No: Can a salesperson legally accept money for themselves from the customer?  True: It is against the law for building and permits departments to issue a permit to a contractor without the contractor's license number.  True: If a contractor fails to correct a violation of the building code within a reasonable time period, the county or municipality inspecting the project shall notify the Commission.  $1,000 and/or 6 months in jail or both: What is the maximum fine for contract- ing without a license - first offense?  $5,000 and/or 2 years in jail or both: What is the maximum fine for contracting without a license - second offense?  Yes: Contractor, Jack Smith, is not getting along with Hector Jones, his customer. If he decides not to complete the contract, has Jack broken any law?  No: Can a contractor decide to use a material other than specified in the contract documents without getting permission from the owner?  All of the above: Contractors may not: 1 misrepresent their service or product 2 make false promises 10 / 26 an independent contractor for a home improvement contractor?  60 days.: The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision with (how many days after the hearing)?  nothing. No service fee may be collected.: A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that me be collected by the contractor is  1 month: A renewal notice MUST be mailed by the Commission within how many months of the license expiration date?  expire.: A license that is NOT renewed will...  regulate, quality: A local county or municipality may the of home improvements.  Baltimore.: The office of the Home Improvement Commission is located in...  Executive Director: The official recordkeeper of the Home Improvement Com- mission, is the of the Commission  Investigative staff of the Home Improvement Commission.: Who investi- gates complaints against Home Improvement licensees?  1 year.: A person who is convicted of acting without a required Home Improve- ment license MUST wait a MINIMUM of what time period before being issued a license? 11 / 26  10 days.: The Commission MUST give a MINIMUM of how many days notice to a license about a hearing on disciplinary action against the licensee?  the name and address of the seller.: All door-to-door sales contracts MUST include (what two things)?  $1,175: The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for interest. What is the purchase price for this contract?  noon on Thursday, September 27.: A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until...  In order for a contractor to present a proposal to a customer, they first have to create a cost estimate of the entire project. Review the project documents (drawings, specifications, contracts and bonds). Attend all pre-bid meetings. Determine costs of labor, materials, equipment and subcontractors. Consider the degree of difficulty the job poses, the overhead involved, and the profit expected. Conduct a site visit!: Estimate Planning  counting the number of items associated with a particular construction project, determining the associated materials and labor costs, and formulating a bid (or estimate) as part of the bidding process. Quantity take-off is also applied to the pricing process. First determine labor costs (by considering historical information) and burden (employment taxes and insurance). Figure out materials, allowances and contingencies, and how they will impact the outcome of the project. Include the direct costs of rented or leased equipment. 12 / 26 Also consider: * Subcontractors if needed * Project overhead * Company overhead * Add markup for profit being careful to keep your bid competitive: The Quantity Take-off Method involves  The cost of labor will vary from job to job. Historical information will help you arrive at an accurate estimate.: Labor Costs  Labor burden refers to the "indirect" administrative costs of employing laborers. The cost of employment taxes and insurance (Medicare, Social Se- curity, unemployment insurance, workers' compensation, liability insurance etc.) must be considered. Indirect labor costs can range from 25 to 70 percent of the base wage rate, and once that percentage is determined, it should be added to the direct labor costs to come up with a single hourly or "shop" rate.: Labor Burden. 15 / 26  True: The Wage Garnishment Law prohibits an employer from firing an employ- ee whose pay is garnished for payment of a single debt.  to detect benefits fraud and to enforce child support orders both b and c: What is the purpose of New Hire Reporting? 1 to collect taxes 2 to detect benefits fraud 3 to enforce child support orders 4 both b and c  True: Employers in Maryland are required to report their payroll and pay unem- ployment insurance taxes on their Quarterly Contribution Report  1: How many employees must an employer have before they are required to purchase Workers Compensation Insurance?  all of the above are benefits provided to an injured employee if needed: - What benefit is provided to an injured employee if needed? 1 Wage replacement and payment for loss or permanent damage to body parts 2 Rehabilitation costs 3 Current and future medical costs 4 All of the above 16 / 26  10 days: If, due to an injury that occurred at work, an employee is unable to return to work after three work days, how long does the employer have to report this accident to the Workers Compensation Commission?  Up to $5000 fine, imprisoned for one year, or both: What is the penalty for not providing Workers Compensation Insurance to your employee(s)?  Department of Labor, Licensing and Regulation: What governmental de- partment in Maryland administers the Laws for Unemployment?  20 days: After how many days of conducting business with an employee is an employer in violation of the law if they have not yet registered for Unemployment Insurance?  New Account Rate: Which of the following rates is for unemployment insur- ance that is the average rate paid by all employers over the last five years?  True: Employers are required to pay a percentage of the first $8,500 of wages for each employee to cover the cost of unemployment insurance. This is 100% an employer expense.  No minimum of twice a month: Can an employer legally pay an hourly wage earner only once a month?  No: Can an employer, as a form of disciplinary action, legally doc an employee's earned wage? 17 / 26  $7.25 /hr: What is the federal minimum wage?  True: After working more than 40 hours in a seven day week, employees in the building trades would be paid 1 1/2 times their usually hourly pay for those hours over 40.  $4.25: If a new employee is under 20 years of age, what is the required minimum wage during their first 90 consecutive calendar days of employment?  True: In the absence of an express contract, employees may be hired or fired for almost any reason - whether fair or not - or for no reason at all.  True: Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol for a "legitimate business purpose".?  True: Minors between 14 and 17, in order to be gainfully employed, must have a work permit.  A workweek is considered 168 hours during seven 24 hour periods. It may begin on any day of the week and at any hour of the day: Workweek Defined under FLSA  1. Employee's full name and social security number. 2. Address, including zip code. 3. Birth date, if younger than 19. 4. Sex and occupation. 5. Time and day of week when employee's workweek begins. 20 / 26 -Workers' Compensation Commission Notice C-24 -Employment Discrimination is Illegal -Occupational Safety and Health Law (MOSH): Required Postings.  -Safety and Health Protection on the Job -Equal Opportunity is the Law -Employee Rights for Workers with Disabilities -Your Rights under the Family Leave and Medical Leave Act -FLSA Minimum Wage Poster: Federal postings that may apply to you:  3 years from discovery of the loss or damage: How long does a claimant have to bring a claim against the guaranty fund?  10 days: How many days does a contractor have to respond in writing to the copy of claim that was sent by the commission?  60 days: If within after the commission gives notice , a contractor on whose amount a claim was paid does not reimburse the fund in full, the commission may sue the contractor for reimbursement.  10 %: In addtion to full reimbursement of the fund, a contractor is responsible to pay at least interest on the amount to reimburse.  True: The state can record a lien against any real property owners by the contractor for a debt owed to the fund. 21 / 26  True: If the commission pays a claim from the fund base on the actions or omissions of a contractor, the commission may suspend the contractors license until full reimbursement of the fund plus at least 10%interest  Names and license numbers of subcontractors: A home improvement con- tract in compliance with the home improvement laws would include all of the following except  No: Can a sales person legally accept money for themselves from the customer  True: It is against the law for building and permits departments to issue a permit to contractor without the contractors license number.  True: If a contractor fails to correct violation of the building code within reason- able time period, the county or municipality inspecting the project shall notify the commission  $5,000 and/or 2 years in jail or both: What is the maximum fine for contracting without a license-second offense  Yes: Contractor, jack smith, is not getting along with hector jones , his customer. If he decides not to complete the contract, has jack broken any laws?  No: Can a contractor decide to use material other than specified in the contract documents without getting permission from the owner?  Lie on their license application Make false promises 22 / 26 Misrepresent their service or product: Contractors may not :  Fraud An illegal act A misdemeanor All of the about: Contractor, jack brown, makes a deal with customer, ameal cougar , to provide an estimate of $40,000 on project where the actual cost are $30,000,allowing ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off jack this is :  True: If a contractor sells personstoos selling or working with the contractor for any reason, the contractor has a responsibility to the state to inform the commission?  True: All advertising has to provide the identifier "Maryland home improvement commission license no "or "MHIC  $5,000: What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws  True: Advertising must be done in a way as to avoid misrepresentating the product, service or Terms of sale so as not to deceive the customer.  True: An applicant must provide to the commission, a credit report with their application. 25 / 26 2 Address of place of business 26 / 26 3 Date of transaction and the date not earlier than the third business day following the transaction that the customer can cancel. 4 All of the above  True: A seller, by law, has to, at the time of sale, orally explain to the customer of their right to cancel.  all of the above: What are the possible repercussions of violating the Door-to- Door Sales Act laws? 1 Repayment of any damages plus paying the customer's attorney's fees 2 Guilty of a misdemeanor 3 Can be fixed $1,000 fine or 1 year in jail or both 4 All of the above  $25.00: Door-to-Door Sales Act applies to sales, lease or rental of consumer goods or services under single or multiple contracts with a purchase price of or more.  : Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol?