MHIC Exam with Complete Solutions, Exams of Advanced Education

Download MHIC Exam with Complete Solutions and more Exams Advanced Education in PDF only on Docsity!

MHIC Exam with Complete Solutions

Home improvement - ANS-the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of the building Excluded (is not a) home improvement - ANS-new home construction or work done to comply with the guarantee of completion for a new building Excluded (is not a) home improvement - ANS-sale of materials, if the seller does not arrange to perform, or does not perform, either directly or indirectly, the installation of the materials Included (is a) home improvement - ANS-construction, improvement, or replacement on the land adjacent to the residents of a driveway, fallout shelter, fence, garage, landscaping, deck, pier, porch or swimming pool Included (is a) home improvement - ANS-installation in the residence of an awning, fire alarm, or storm window Excluded (is not a) home improvement - ANS-work done on commonly owned areas of condominiums Contractor - ANS-a person who performs or offers or agrees to perform a home improvement for an owner. And employee of the owner is not a contractor. Home improvement contract - ANS-an agreement between a homeowner in a contractor to perform a home improvement Handyman licensing - ANS-is required to hold a MHIC license, no matter how small the contract. License renewal time frame - ANS-every two years the licensee must apply Licensing exemption - ANS-an employee of a contractor who is not a salesperson A licensing exemption - ANS-an employee of a licensed contractor who sells the home improvement at a retail establishment A licensing exemption - ANS-a telephone solicitor An exemption from licensing - ANS-an employee of a subcontractor A licensing exemption - ANS-a security system technician

An exemption from licensing by MHIC - ANS-someone who holds another state license and who is working with in the scope of that license, such as an architect or plumber, and their salesperson Exam scores are good for how long? - ANS-2 years Passing exam percentage - ANS-70% Amount of general liability insurance - ANS-$50, Experience required to be licensed - ANS-2 years of trade experience or comparable educational training Trade experience includes - ANS-participation in a registered apprentice program Trade experience includes - ANS-employment in performing home improvement Trade experience - ANS-employment in performing commercial or residential construction, repairs or renovations Trade experience includes - ANS-participation in a community service or charitable building or renovation program Trade experience includes - ANS-performing repairs and improvements that require a building permit on one's own home or the home of family members Salespersons are licensed as - ANS-an individual Guaranty Fund compensates homeowners for - ANS-actual loss Guaranty Fund - ANS-protects homeowners who hire a licensed home improvement contractors against actual loss caused by an incomplete, incorrect or unworkmanlike job Total maximum guaranty fund payment per contractor - ANS-$100, Contractor response time for a complaint - ANS-10 days Limit at which commission may pay a claim without a hearing - ANS-$5, Who must receive a signed copy of the contract prior to work starting? - ANS- homeowner Required to be in a home improvement contract - ANS-contractors name, address, and MHIC license number

Required to be in a home improvement contract - ANS-consumer notice that gives telephone number for Commission Required to be in a home improvement contract - ANS-notice of formal mediation of disputes, that the MHIC administers the guaranty fund, homeowner may request that contractor purchase performance bond Required to be in a home improvement contract - ANS-dates of when performance will begin and when it will be substantially completed Required to be in a home improvement contract - ANS-description of home improvement Required to be in a home improvement contract - ANS-deposit, payment, and contractor cannot accept more than 1/3 of contract price as deposit Required to be on the first page of contract - ANS-"this contract creates a mortgage or lien on the property to secure payment and may cause a loss of your property if you fail to pay the amount agreed upon" If a contract contains a mandatory arbitration clause it must include - ANS-the name of the person or organization that will conduct an arbitration If a contract contains a mandatory arbitration clause it must include - ANS-whether any mandatory fees will be charged to the parties for the arbitration If a contract contains a mandatory arbitration clause it must include - ANS-a list of the fee schedule If a contract contains a mandatory arbitration clause it must include - ANS-whether the arbitrator's findings are binding If a contract contains a mandatory arbitration clause it must include - ANS-a disclosure that a claim against the guaranty fund will be stayed until completion of mandatory arbitration What is given to homeowner before the performance of a home improvement? - ANS-a copy of the contract signed by the contractor and homeowner What gives consumers rights to cancel contract within third business day following sale? - ANS-Door-to-Door Sales Act How many days to return homeowners deposit when homeowner cancel his contract? - ANS-10 days

The 3 business day cancellation clause must be ____________________. - ANS-in bold faced type with a minimum size of 10 points. The Door-to-Door sales act does not apply to - ANS-consumer goods that are exhibited or consumer services are offered for sale on a continuing basis How many contractors in total may a salesperson represent? - ANS-two During a sales presentation, how many contractors can a salesperson represent? - ANS-only one A salesperson must use a contract form that ___________________________ - ANS- must name the contractor Who is responsible for notifying MHIC when a salesperson joins our leaves the sales team? - ANS-the contractor An advertisement of an MHIC contractor must - ANS-include the MHIC license number and cannot be false, deceptive, or misleading When it is referenced, "Fund" means - ANS-Home Improvement Guaranty Fund "Local authorization prohibited" means - ANS-a county or municipal corporation (city) may not require a business authorization to perform or sell a home improvement The Executive Director of MHIC devotes _______________ duties to office - ANS-full- time The Executive Director of MHIC shall _______________________ - ANS-keep the official records of the Commission An applicant for a contractor license shall have how many years of trade experience? - ANS-2 years The Commission may not issue a salesperson license unless it _________________ - ANS-has received the written notice of an employment relationship signed by licensed contractor and salesperson Unless a license is renewed for a 2-year term as provided, the license __________________. - ANS-expires A holder of a contractor license that is on inactive status may not act as a ___________________ - ANS-contractor Notice of hearing for suspension or revocation of license must be sent no later than ______________. - ANS-10 days

A person may not reapply for license within _________________ after the person has a license denied or revoked - ANS-6 months ____________________ means the cost of restoration, repair, replacement, or completion that arise from unworkmanlike, inadequate, or incomplete home improvement. - ANS-Actual loss At what level must the Commission maintain the home improvement guaranty fund? - ANS-$250, The initial assessment fee to the Fund for a contractor license is _______________ - ANS-$ If the Commission finds that pending claims will cause the fund to fall below $250, the commission ___________________________. - ANS-shall assess each contractor a fee of $50, but not more than $150 in total, in a calendar year. The Commission may not award more than _________________ to one claimant for acts or omissions. - ANS-$20, Commission may not award more than ____________________ to all claimants for the acts or omissions of one contractor - ANS-$100, The claims limitation is _______________ (time limit in which a claim can be filed against a contractor) - ANS-3 years How shall the Commission pay approved claims? - ANS-in the order submitted If a contractor does not pay within _________________ after the commission gives notice, the commission may sue for payment. - ANS-30 days Each home improvement contractor shall - ANS-be in writing and legible; describe clearly each document that it incorporates; and be signed by each party to the home improvement contract To advertise or promote sales, a contractor may not give a prospective customer a tangible item costing more than ___________. - ANS-$ A city or county may not issue a permit for a home improvement unless the permit includes the ________________ of a licensed contractor. - ANS-license number Penalty for first conviction of acting as a contractor without a license - ANS-$1,000 fine or imprisonment not exceeding 6 months or both

Penalty for second conviction of acting as a contractor without a license - ANS-$5, fine or imprisonment not exceeding 2 years or both Penalty for false proof of completion is subject to - ANS-fine not exceeding $5,000, or imprisonment not exceeding 3 years, or both A contractor may not accept a ___________________ before signing a home improvement contract - ANS-payment for deposit MHIC regulations do not apply to performance of mold premediation in an area less than ______________________. - ANS-10 sq ft License numbers on vehicles shall be at least _______________ in height. - ANS- inches When advertising guaranties or warranties, the following must be included: - ANS- period of time covered shall be disclosed; and indicate whether items are labor and material only or whether full refunds are offered Definition of business day - ANS-any calendar day except Sunday or major holidays Primary elements of a contract - ANS-offer, acceptance, and consideration Within how many days does Seller need to notify buyer of intention to repossess or abandon shipped or delivered goods? - ANS-10 days Seller of a contract must inform buyer ___________________ at the time of contract signing of the right to cancel. - ANS-orally A ____________________ is not required to be licensed under Title 17, Subtitle 3. - ANS-marine contractor These individuals are not required to be licensed under MHIC. - ANS-an architect, electrician, plumber, heating, ventilation, and air-conditioning, or refrigeration contractor. Salespersons are subject to the "two" and "one" restrictions. The salesperson can only represent 2 contractors at a time, and when selling can ____________________. - ANS-sell the product/service of a single contractor during a sales call The current MHIC licensing application fee is $ ____________ of which $ ___________ goes into the guaranty fund. - ANS-$370 and $ The application fee for an MHIC license is _________________. - ANS-$ This amount is deposited into the Guaranty Fund from the initial MHIC license application fee. - ANS-$

If contractor does not re-pay the commission within _________________ , the Commission may sue for non-payment. - ANS-30 days If a paid claim from Guaranty fund is not reimbursed within ________________________ , the Commission may request withholding of tax refund to pay debt owed. - ANS-1 year A salesperson may not __________________________ the name of the contractor. - ANS-use a contract form that does not disclose ________________________ is NOT permitted when obtaining a home improvement contract. - ANS-Misrepresentation This describes making a false promise that is likely to influence, persuade, or induce a buyer to make a home improvement contract. - ANS-misrepresentation It is a ________________________________ to not disclose a material fact when applying for an MHIC license. - ANS-misrepresentation What is best way to to estimate materials? - ANS-with historical data or statistics Who is responsible for providing MSDS (material safety data sheet) - ANS-employer Who provides personal protective equipment? - ANS-employer What is daily maximum penalty for violating EPA lead regulations? - ANS-$37, How is overtime calculated? - ANS-after 40 hours a week, then 1.5x hourly rate What are penalties for not making payroll tax deposits (FICA, FED Tax)? - ANS- Penalties of days late penalties, 2%, 5%, 10% If a license is revoked for more than ________________________ , individual will need to take licensing exam again to get licensed. - ANS-6 months Inspection of work trenches are to occur - ANS-daily OSHA standards require potable water supply to be provided by ____________________ - ANS-tap Who is liable if a claim is filed against a corporation? - ANS-corporation Employers must have an OSHA Emergency Action Plan if they have more than ___________________ employees. - ANS-

OSHA requires reporting of fatalities __________________________. - ANS-within 8 hours EPA requires that only ______________________ can perform painting work on projects on structures built before 1978. - ANS-certified contractors A __________________________ is required to train certified renovators of lead-based paint projects. - ANS-EPA-accredited training provider If you are doing business under a name other than your personal name, ______________________________ - ANS-a trade name needs to be filed with the MD Dept of Assessments and Taxation. The advantages of being a sole proprietor are: - ANS-minimal legal restrictions; simple ownership form; low start up costs; sole ownership of profits; freedom in decision- making process Sole proprietorship includes _________________________ - ANS-unlimited personal liability Liability of Corporations is described as ______________________. - ANS-generally no personal liability of the shareholders Workers Compensation is required for employers with _________________________.

• ANS-one or more full-time or part-time employees A balance sheet equation is ________________________ - ANS-Assets = Liabilities + Owners' Equity Maryland business income is taxed at _____________ - ANS-7% The IRS Employer's Tax Guide is called ______________________. - ANS-Circular E