Maryland Home Improvement Salesperson Exam Questions and Answers 2025, Exams of Nursing

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Maryland Home Improvement Salesperson Exam

Questions and Answers 2025.Graded A+

A salesperson currently working for two contractors resigns from one of his employers to accept employment with another contractor. Who is responsible for notifying the Maryland home improvement commission of his resignation? - ANSWER: The former employer When may a permit for a home improvement be issued without including the license number of a license contractor? - ANSWER: When the home improvement will be performed by the property owner What is not required in an advertisement offering a specific home improvement at a sale of temporarily reduced price? - ANSWER: A guaranty or warranty A salesperson has obtained a signed contract and a deposit for a building a deck, subject to acceptance by the contractor. The contractor elects not to accept the contract. When must he return the deposit to the owner. - ANSWER: Within 10 working days of the date of the contract When must a contractor's home improvement license be renewed? - ANSWER: By June 30th- every 2 years What requires the contractor to have a home improvement license. - ANSWER: Installation of new kitchen cabinets

Home Improvement contractor John Jones and company is changing the name of his firm to John Jones and son. When must he notify the Home Improvement Commission? - ANSWER: Within 10 days of the change A carpenter is regularly employed by a licensed Home Improvement contractor. He builds a deck for his neighbor for $2,000. The contractor finds out about the project, fires the carpenter, and reports the incident to the Home Improvement commission. The commission may? - ANSWER: Charge the carpenter with violation of the Home Improvement Act An owner and a contractor prepare a false certificate of completion for presentation to the contractors bank to obtain additional credit. What is the maximum penalty upon conviction? - ANSWER: A $5,000 fine and imprisonment up to 3 years for the contractor and the owner An individual seeking a Home Improvement contractors license was denied by the Home Improvement commission due to failure to provide the required financial information. Following a hearing the denial was reaffirmed. How longs must he wait before he may reapply for a license. - ANSWER: 6 months A woman wishes to work as a salesperson in the Hone Improvement field. What is not required? - ANSWER: Provide proof of general liability insurance How must a Home Improvement contractor display his license number on all work vehicles. - ANSWER: The letters MHIC# and his license number in 3" high letters on both sides of the vehicle What is the initial assessment for the home improvement guaranty fund of every home improvement contractor? - ANSWER: $

Requirement of a home improvement contract - ANSWER: The customer is given a signed copy of the contract before work begins What is the maximum deposit a contractor may require to build a deck attached to a house if the total contract if for $5400 - ANSWER: $ A contractor specializes in building decks. What is the most important item in his advertising? - ANSWER: His name and license number An applicant for or holder of a subcontractor license must have general liability insurance of not less than what amount? - ANSWER: $50, What is the license application fee for a salesperson license? - ANSWER: $ Which person is required to obtain a Maryland home improvement license? - ANSWER: A contractor who works in Maryland but whos principal place of business is not in Maryland. A home improvement contractor has contracted for and constructed a garbage. The roof failed to support the snow load the following winter, damaging both rood and the owner car. The contractor repaired the roof, but refuses to pay for repairs to the car. How much may the property owner recover from the home improvement guaranty fund for repairs to his car? - ANSWER: Nothing A successful salesperson for a single contractor wants to expand his income by representing additional contractors. How many additional contractors may he represent. - ANSWER: 1 The Home Improvement Commission has issued a proposed order to pay a claim of $2,000 against a contractor, with a copy delivered to the contractor. The

contractor is required to respond within what period of time if he wishes to appeal or contest the award. - ANSWER: 21 days The name used in an application for a salesperson's license must be? - ANSWER: The legal name of the applicant A home Improvement contractor is advertising a sale on hot tubs. His ads include only the basic price of the tub. What is required in his ad? - ANSWER: A statement that accessories shown or which may be essential to operation are not included in the advertised price. A claim against the Home Improvement Guaranty Fund must be brought to the commission within what period of time? - ANSWER: Within 3 years of discovering the loss or damage A contractor offers employment to a telephone salesperson. Which of the following must accompany the salespersons application for a license. - ANSWER: No license is required What is required as part of a Home Improvement contract? - ANSWER: A list and description of materials to be used on the project The property owner may obtain payments for loss under the Home Improvement guaranty fund for? - ANSWER: The cost of replacing substandard materials What is grounds for revoking a Home Improvement contractors license? - ANSWER: failing to report information concerning changes in ownership of the business

A contractor receives a notice of hearing before the Home Improvement Commission with relation to a claim entered against him. What response is required? - ANSWER: None, no legal requirement Example of door to door sale? - ANSWER: A roofing contractor called to fix a leak in a property owners roof. Sells the owner a contract for a completely new roof Example of not a door to door sale - ANSWER: Sale of a $300 investment advisory program via credit card purchase over the internet A contractors representative makes a door to door sale at 10:30am, Wednesday, December 23rd. The salesperson doesn't turn in the sale contract until December 28th. When is the latest the buyer may exercise their right to cancel? - ANSWER: Midnight December 28th What service is not regulated under the Maryland door to door sales act? - ANSWER: Sale of insurance to a homeowner at his home What information or statement must be given to every prospective buyer upon initial contact and prior to soliciting a sale? - ANSWER: The trade name of the person or company represented by the person making the solicitation A seller fails to include a cancellation form with the contract and receipt for a door to door sale. The customer decides to cancel the sale. How must the buyer notify the seller of cancellation? - ANSWER: By and manner or means of his choice What is the maximum service fee permitted when a homeowner cancels a $5, roofing job within the five day cancellation period? - ANSWER: None

A buyer has canceled a sale within the allowable time period. When must any goods or property traded in be returned? - ANSWER: Within 10 business days after the seller receives the cancellation notice A buyer has cancelled within the allowable time, and the seller has refunded the deposit. How does the seller regain possession of the merchandise? - ANSWER: The seller must recover it at his own expense within 20 days following the date cancellation addition or alteration, conversion or replacement of a building or part of a building

- ANSWER: Home Improvement A person who performs or offers a home improvement - ANSWER: Contractor A person who performs all or part of a home improvement BUT does not enter an agreement with homeowner - ANSWER: Subcontractor A person who sells home improvement contract - ANSWER: Sales Person An agreement between a homeowner and a contractor to perform a home improvement. Has to be in writing and be signed by both parties - ANSWER: Home Improvement contract An owner, Owner's agent, tenant or an authorized person - ANSWER: Owner Contractor or salesperson, issued by home improvement commission - ANSWER: A license 2 years - ANSWER: Years of experience has to be

coverage that can protect you from a variety of claims, at least $50,000 - ANSWER: General liability insurance The fund compensates homeowner for actual loss cause by the act or omission of a licensed contractor - ANSWER: Home Improvement Guaranty Fund Homeowner may recover up to $20,000 per contract maximum amount can be awarded of a contractor is $100,000 - ANSWER: Actual Loss based on information the employee provided on the W-4 form - ANSWER: Federal income tax Sometimes called the profit and loss statement, is a summary of the company's revenues and expenses over a given period of time - ANSWER: Income Statement Person who plans and coordinates construction projects to meet the overall goals of the project and serve as the main contact with the owner - ANSWER: Project manager Is the onsite supervisor responsible for daily operations - ANSWER: Superintendent Prescribes standards for the basic minimum wage and overtime pay - ANSWER: Fair Labor Standards Act $7.25 per hour - ANSWER: Federal minimum wage

A period of 168 hours during seven consecutive 24 - hour periods - ANSWER: Workweek A Home Improvement Contractor is a person who offers to perform repairs for a homeowner. What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? a) $ b) $ c) $ d) $1, $ What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? The contractor is NOT permitted to compensate the homeowner for referrals. All of the following are exempt from licensing under the Home Improvement Law EXCEPT a fence contractor.

An applicant was denied a license after a hearing. When may the applicant reapply? 6 months. What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? No license is required. 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 within 60 days after the hearing. A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is nothing. No service fee may be collected. All of the following are grounds for denial of licensure EXCEPT not being a Maryland resident. A renewal notice MUST be mailed by the Commission within how many months of the license expiration date?

1 month. A license that is NOT renewed will expire. All of the following Commission records can be inspected by the public during normal office hours EXCEPT financial records of each licensee. All of the following are considered home improvements EXCEPT repairs to an HVAC system. A local county or municipality may regulate the quality of home improvements. The office of the Home Improvement Commission is located in Baltimore. The official recordkeeper of the Home Improvement Commission shall be the Executive Director of the Commission.

Who investigates complaints against Home Improvement licensees? Investigative staff of the Home Improvement Commission. All of the following activities are grounds for disciplinary action against a licensee EXCEPT issuing a promissory note for the home improvement. A person who is convicted of acting without a required Home Improvement license MUST wait a MINIMUM of what time period before being issued a license? 1 year. The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? 10 days. Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract? a) Columbus Day b) Veteran's Day

c) Election Day d) Washington's Birthday Election Day. All door-to-door sales contracts MUST include the name and address of the seller. 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? $1,175. A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until a) midnight on Sunday, September 23. b) midnight on Monday, September 24. c) noon on Tuesday, September 25. d) noon on Thursday, September 27. noon on Thursday, September 27.

All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the a) name of the seller b) purchase price c) date of the transaction d) latest cancellation date purchase price.