MHIC NASCLA CONTRACTORS EXAM REVIEW 100% VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET, Exams of Organization and Business Administration

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MHIC NASCLA CONTRACTORS EXAM

REVIEW 100% VERIFIED ANSWERS

2024/2025 CORRECT STUDY SET

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 SUBCONTRACTOR ARE:

CANNOT

A COUNTY OR MUNICIPALITY IN MARYLAND _____________ REQUIRE A CONTRACTOR 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 CHARACTER,

PERFORMANCE AND QUALITY OF HOME IMPROVEMENT.

HOW MANY MEMBERS ARE THERE IN THE MARYLAND HOME IMPROVEMENT COMMISSION?

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.

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?

HOW MANY CONTRACTORS MAY A SALESPERSON REPRESENT?

BOTH A AND B

THE FOLLOWING ARE EXEMPT FROM LICENSURE REQUIREMENTS:

ASSOCIATED ANSWERS

1 EMPLOYEES FOR LABOR SERVICES

2 EMPLOYEES FOR CLERICAL WORK

3 SALESPERSONS

4 BOTH A AND B

$50,

WHAT IS THE MINIMUM AMOUNT OF LIABILITY INSURANCE NEEDED?

TRUE

AN APPLICANT FOR LICENSURE MUST HAVE 2 YEARS TRADE EXPERIENCE OR COMPARABLE

EDUCATIONAL TRAINING.

$

WHAT IS THE COST OF THE INITIAL APPLICATION FEE FOR A HOME IMPROVEMENT CONTRACTORS'

LICENSE?

ALL OF THE ABOVE

THE COMMISSION CAN ASK AN APPLICANT FOR INFORMATION ABOUT THE APPLICANT'S...

1 CHARACTER

2 EXPERIENCE

3 FINANCIAL STABILITY

4 ALL OF THE ABOVE

NO

THE FINANCIAL INFORMATION PROVIDED BY AN APPLICANT IS PUBLIC INFORMATION.

10 DAYS

IF AN APPLICATION FOR A LICENSE IS DENIED, THE APPLICANT CAN REQUEST A HEARING WITHIN

______________ AFTER THE NOTICE OF DENIAL IS MAILED.

TRUE

A SALESPERSON WILL NOT BE ISSUED A LICENSE UNTIL THE SALESPERSON BECOMES EMPLOYED OR

CONTRACTUALLY INVOLVED WITH A LICENSED CONTRACTOR.

NO MORE THAN $

WHAT IS THE FEE TO PLACE A LICENSE ON INACTIVE STATUS?

ALL OF THE ABOVE

A PERSON WHOSE LICENSE IS PUT ON INACTIVE STATUS...

1 MUST RETURN THEIR LICENSE TO THE STATE.

2 DOESN'T HAVE TO MAINTAIN THE REQUIRED LIABILITY INSURANCE COVERAGE.

3 MUST NOT DO ANY CONTRACTING.

4 ALL OF THE ABOVE.

YES

MUST A CONTRACTOR, SUB-CONTRACTOR, OR SALESPERSON WHO PLACES THEIR LICENSE ON

INACTIVE STATUS PAY A FEE TO RENEW 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?

HOW MANY CONTRACTORS MAY A SALESPERSON REPRESENT?

NO

JIM SMITH IS A SALES REPRESENTATIVE FOR ABC CONSTRUCTION. CAN HE ACCEPT A POSITION AS A

SALES REPRESENTATIVE FOR TOP NOTCH CONSTRUCTION WITHOUT FIRST INFORMING ABC

CONSTRUCTION OF HIS INTENTIONS AND ALSO INFORMING TOP NOTCH CONSTRUCTION OF HIS

EXISTING SITUATION WITH ABC CONSTRUCTION?

GIVE THE COMMISSION WRITTEN NOTICE

WHEN A SALES PERSON IS NO LONGER ASSOCIATED WITH A COMPANY THEY REPRESENTED, THE

CONTRACTOR MUST:

ALL OF THE ABOVE

THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE IF THE LICENSEE:

1 LIES ON THEIR APPLICATION

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 INCOMPLETE HOME

IMPROVEMENT.

$

WHAT IS THE FEE A HOME IMPROVEMENT CONTRACTOR MUST PAY INTO THE GUARANTY FUND

BEFORE THE COMMISSION WILL ISSUE A LICENSE?

$20,000.

WHAT IS THE MAXIMUM AMOUNT OF MONEY THE COMMISSION WILL AWARD TO ANY ONE

CLAIMANT FROM THE GUARANTY FUND?

$100,000.

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

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 RESPONSIBLE 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 CONTRACT IN COMPLIANCE WITH THE HOME IMPROVEMENT LAWS

WOULD INCLUDE ALL OF THE FOLLOWING EXCEPT:

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 CONTRACTING 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

3 LIE ON THEIR LICENSE APPLICATION

4 ALL OF THE ABOVE

ALL OF THE ABOVE

CONTRACTOR, JACK BROWN, MAKES A DEAL WITH CUSTOMER, AMEAL COUGAR, TO PROVIDE AN

ESTIMATE OF $40,000 ON A PROJECT WHERE THE ACTUAL COSTS ARE $30,000, ALLOWING AMEAL

TO POCKET $10,000 AFTER SECURING A MORTGAGE AT $40,000 AND PAYING OFF JACK. THIS IS:

1 FRAUD

2 AN ILLEGAL ACT

3 A MISDEMEANOR

4 ALL OF THE ABOVE

TRUE

A LICENSED SALESPERSON CAN ONLY SELL THE SERVICES OF LICENSED CONTRACTOR OR

SUBCONTRACTORS.

TRUE

IF A CONTRACTOR'S SALESPERSON STOPS 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,

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 MISREPRESENTING 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.

10 DAYS

HOW MANY DAYS DOES A CONTRACTOR HAVE TO RESPOND TO A RECEIPT OF A CLAIM FROM THE

COMMISSION?

PERFORM REPAIRS FOR A HOMEOWNER.

A HOME IMPROVEMENT CONTRACTOR IS A PERSON WHO OFFERS TO...

$

WHAT IS THE MAXIMUM DEPOSIT PERMITTED FOR A PROJECT WITH A TOTAL CONTRACT PRICE OF

$1,500?

THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR REFERRALS.

WHAT IS THE MAXIMUM AMOUNT THAT A HOME IMPROVEMENT CONTACTOR MAY PAY TO A

HOMEOWNER FOR REFERRING A CLIENT TO THE CONTRACTOR?

6 MONTHS.

AN APPLICANT WAS DENIED A LICENSE AFTER A HEARING. WHEN MAY THE APPLICANT REAPPLY?

NO LICENSE IS REQUIRED.

WHAT LICENSE IS REQUIRED FOR A TELEPHONE SALESPERSON THAT WORKS AS 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 COMMISSION, IS THE _________

________ OF THE COMMISSION

INVESTIGATIVE STAFF OF THE HOME IMPROVEMENT COMMISSION.

WHO INVESTIGATES COMPLAINTS AGAINST HOME IMPROVEMENT LICENSEES?

1 YEAR.

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?

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,

THE COST OF A PROJECT INCLUDES $1,000 FOR GOODS AND SERVICES, $50 FOR DELIVERY, AND $

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.

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 SECURITY,

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.

THE COSTS OF MATERIALS CAN FLUCTUATE, AND IT IS IMPORTANT TO BE CURRENT IN YOUR

ESTIMATE OF MATERIAL COSTS. BE SURE TO GET SEVERAL BIDS FROM EACH SUPPLIER. ADD

CONTINGENCY COSTS FOR WASTE.

MATERIALS

LARGE EQUIPMENT REQUIRED TO COMPLETE A PROJECT, FOR EXAMPLE A LOADER NEEDED FOR

MOVING STOCKPILED DIRT FOR REMOVAL, IS CONSIDERED A DIRECT COST. THESE COSTS WILL

DIFFER DEPENDING ON WHETHER OR NOT YOU OWN OR RENT THE EQUIPMENT. IF YOU OWN,

CALCULATE THE UNIT COST OF THE EQUIPMENT BY DETERMINING THE ACTUAL VALUE

(DEPRECIATION FROM ORIGINAL PRICE), OPERATION AND MAINTENANCE COSTS, TAXES AND FEES,

LABOR AND INSURANCE. IF THE EQUIPMENT IS RENTED, FACTOR IN THE RENTAL RATE, DELIVERY

FEES, LABOR, FUEL ETC. FINALLY, THE OPTION OF SUBCONTRACTING THE WORK IS AVAILABLE, AND

THIS COST WOULD APPEAR UNDER SUBCONTRACTOR FEES.

EQUIPMENT COST.

CONTINGENCIES ARE ADDED TO ALLOW FOR UNANTICIPATED PROBLEMS. ADDING CONTINGENCY

COSTS TO THE ESTIMATE FROM THE START ALLOWS MORE FLEXIBILITY TO ABSORB THESE

ADDITIONAL EXPENSES WITHOUT GOING OVER BUDGET.

CONTINGENCIES

THESE ARE COSTS (SOFT COSTS) THAT ARE ASSOCIATED WITH THE PROJECT, BUT ARE NOT LABOR

AND MATERIALS. EXAMPLES OF PROJECT OVERHEAD ARE: UTILITIES, TEMPORARY STORAGE AND

OFFICE COSTS, SECURITY, DUMPSTERS AND SANITATION. DETERMINE PROJECT OVERHEAD BY

ADDING ALL YOUR PROJECT COSTS FROM THE PREVIOUS YEAR, AND THEN DIVIDE THAT NUMBER

BY YOUR REVENUES TO ARRIVE AT YOUR OVERHEAD PERCENTAGE.

PROJECT OVERHEAD

THIS IS THE COST OF RUNNING THE BUSINESS ITSELF. PERMANENT OFFICE COSTS, TAXES,

TELEPHONES, LEGAL/ACCOUNTING FEES, AND ADMINISTRATION COSTS ARE ALL CONSIDERED

COMPANY OVERHEAD. COMPANY OVERHEAD IS CALCULATED BY A PERCENTAGE OF ANNUAL

GROSS REVENUE. ANNUAL COMPANY OVERHEAD, DIVIDED BY ANNUAL GROSS REVENUES,

PROVIDES THE PERCENTAGE AMOUNT TO ADD TO EACH BID TO COVER COMPANY OVERHEAD. SO,

FOR EXAMPLE, IF YOUR COMPANY OVERHEAD IS 2%, YOU KNOW TO ADD THAT AMOUNT TO

EVERY BID.

ANNUAL COMPANY OVERHEAD

NO

WHEN INTERVIEWING A PERSON FOR EMPLOYMENT, IS IT LEGAL TO ASK THEM ABOUT THEIR

MENTAL HEALTH HISTORY?

TRUE

EMPLOYERS ARE REQUIRED TO REPORT A NEW EMPLOYEE OR REHIRED EMPLOYEE TO THE STATE

DIRECTORY OF NEW HIRES.

I- 9

WHAT FEDERAL FORM ARE EMPLOYERS REQUIRED TO COMPLETE WITHIN 3 DAYS OF THEIR HIRE FOR

THE U.S. CUSTOMS AND IMMIGRATIONS SERVICE?

FAIR LABOR STANDARD ACT

WHAT FEDERAL LAW PROVIDES EMPLOYERS WITH THEIR MINIMUM WAGE AND OVERTIME

REQUIREMENTS?

NO

DO EMPLOYERS HAVE TO PAY OVERTIME PAY TO EMPLOYEE WHO WORKS ON A HOLIDAY?

TRUE

THE WAGE GARNISHMENT LAW PROHIBITS AN EMPLOYER FROM FIRING AN EMPLOYEE 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 UNEMPLOYMENT

INSURANCE TAXES ON THEIR QUARTERLY CONTRIBUTION REPORT

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

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 DEPARTMENT 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 INSURANCE 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?

$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.

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.

6. HOURS WORKED EACH DAY.

7. TOTAL HOURS WORKED EACH WORKWEEK.

8. BASIS ON WHICH EMPLOYEE'S WAGES ARE PAID (E.G., "$9 PER HOUR", "$440 A WEEK",

"PIECEWORK")

9. REGULAR HOURLY PAY RATE.

10. TOTAL DAILY OR WEEKLY STRAIGHT-TIME EARNINGS.

11. TOTAL OVERTIME EARNINGS FOR THE WORKWEEK.

12. ALL ADDITIONS TO OR DEDUCTIONS FROM THE EMPLOYEE'S WAGES.

13. TOTAL WAGES PAID EACH PAY PERIOD.

14. DATE OF PAYMENT AND THE PAY PERIOD COVERED BY THE PAYMENT

REQUIRED RECORDKEEPING. THE FOLLOWING RECORDS MUST BE KEPT AND PRESERVED FOR AT

LEAST THREE YEARS.

A VIOLATOR MAY BE FINED UP TO $10,000, AND IF FOUND GUILTY A SECOND TIME MAY BE

IMPRISONED.

WILLFUL VIOLATIONS OF THE FLSA CAN RESULT IN SIGNIFICANT FINES.

APPLIES TO EMPLOYERS OF MORE THAN 20 EMPLOYEES, AND PROHIBITS DISCRIMINATION

AGAINST APPLICANTS OVER THE AGE OF 40. INTERESTINGLY, THE ACT DOES NOT PROTECT

YOUNGER WORKERS FROM "REVERSE AGE DISCRIMINATION".

AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967

THE FAMILY AND MEDICAL LEAVE ACT PERMITS A "SPOUSE, SON, DAUGHTER, PARENT, OR NEXT OF

KIN" TO TAKE UP TO 26 WORK WEEKS OF LEAVE TO CARE FOR A "MEMBER OF THE ARMED FORCES,

INCLUDING A MEMBER OF THE NATIONAL GUARD OR RESERVES, WHO IS UNDERGOING MEDICAL

TREATMENT, RECUPERATION, OR THERAPY, IS OTHERWISE IN OUTPATIENT STATUS, OR IS

OTHERWISE ON THE TEMPORARY DISABILITY RETIRED LIST, FOR A SERIOUS INJURY OR ILLNESS."

FAMILY AND MEDICAL LEAVE ACT

THIS LAW LIMITS THE AMOUNT OF INCOME THAT MAY BE LEGALLY WITHHELD FROM AN

EMPLOYEES INCOME

WAGE GARNISHMENT LAW.

1.MEDICAL EXPENSES

2. DISABILITY PAY

3. VOCATIONAL REHABILITATION

4. BENEFITS TO DEPENDENTS

THERE ARE 4 COMPONENTS TO WORKERS' COMPENSATION:

NO LATER THAN 20 DAYS AFTER THE FIRST DAY OF BUSINESS.

EMPLOYERS SHOULD SUBMIT A COMBINED REGISTRATION FORM

- WAGE AND HOUR FACT SHEET

- EQUAL PAY FOR EQUAL WORK

- EMPLOYMENT OF MINORS

- UNEMPLOYMENT INSURANCE AND BENEFITS

- UNEMPLOYMENT INSURANCE COVERAGE

- 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.

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 CONTRACT IN COMPLIANCE WITH THE HOME IMPROVEMENT LAWS

WOULD INCLUDE ALL OF THE FOLLOWING EXCEPT

TRUE

A SALESPERSON MAY NOT REPRESENT 2 CONTRACTORS AT THE SAME TIME FOR THE SAME PROJECT.

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 REASONABLE 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

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.

10 DAYS

HOW MANY DAYS DOES A CONTRACTOR HAVE TO RESPOND TO A RECEIPT OF A CLAIM FROM

COMMISSION?

9 MEMBERS

HOW MANY MEMBERS ARE THERE IN THE MARYLAND HOME IMPROVEMENT COMMISSION?

4 MEMBER

OF THE 9 MEMBERS ON THE COMMISSION , HOW MANY ARE EXPERIENCED IN HOME

IMPROVEMENT?

YES

IF A CONTRACT WAS AGREED TO AND SIGNED BY BOTH PARTIES FOR THE PURCHASE OF

REPLACEMENT WINDOWS AT A TRADE SHOW, WOULD THIS SALE BE SUBJECT TO THE LAWS OF THE

DOOR-TO-DOOR SALES ACT?

YES

IF A CONSUMER, BY PHONE, CONTACTED A ROOFING COMPANY AND ASKED FOR A BID FOR THEIR

HOME, AND THE CONTRACT IS SIGNED AT THE HOME OF THE CONSUMER WITHOUT EVER GOING TO

THE OFFICE OF THE ROOFING COMPANY, IS THIS SALE SUBJECT TO THE LAWS OF THE DOOR-TO-

DOOR SALES ACT?

YES

CAN A BUYER WAIVE HIS RIGHT TO CANCEL A CONTRACT THAT WOULD FALL INTO THE CATEGORY OF

SITUATIONS THAT THIS LAW COVERS IN EMERGENCY SITUATIONS?

NO

WHEN A BUYER INITIATES THE CONTACT AND REQUESTS A CONTRACTOR TO VISIT THE HOME TO

MAKE A REPAIR OR PERFORM MAINTENANCE, IS THIS SALE TO REPAIR OR MAINTAIN THIS HOME

SUBJECT TO THE DOOR-TO-DOOR SALES ACT?

NO

IF A CUSTOMER MADE A PURCHASE ENTIRELY OVER THE PHONE OR BY MAIL, WOULD THIS SALES BE

SUBJECT TO THE DOOR-TO-DOOR SALES ACT?

TRUE

CONTRACTORS CANNOT FAIL TO PROVIDE A COPY OF THE CONTRACT ENTERED INTO BETWEEN THE

CONTRACTOR AND THIS CUSTOMER AT THE TIME THIS CONTRACT IS EXECUTED.

10 POINTS

THE CONTRACT OR SALES RECEIPT MUST INFORM THE BUYER IN BOLDFACE TYPE A MINIMUM SIZE

OF __________ POINTS IN THE AREA WHERE THEIR SIGNATURE IS REQUIRED ON THE DOCUMENT

THAT "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE

THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION."

NOTICE OF CANCELLATION

WHERE APPLICABLE, CONTRACTORS MUST PROVIDE TO THEIR CUSTOMERS THE FORM TITLED,

________________________ AT THE TIME OF THE SALE.

10 BUSINESS DAYS

IF A CUSTOMER CANCELS THEIR TRANSACTION WITH YOU, HOW LONG DO YOU HAVE TO RETURN

PROPERTY TRADED IN AND MONEY EXCHANGED?

THE SELLER

IF A CUSTOMER CANCELS THEIR TRANSACTION WITH YOU AND AGREES TO SHIP THE PURCHASED

ITEM BACK TO THE SELLER, WHO PAYS FOR THE SHIPPING?

20 DAYS (NOT 20 BUSINESS DAYS!)

IF A CUSTOMER MAKES THE GOODS AVAILABLE TO THE SELLER AT THEIR RESIDENCE AND THE SELLER

DOES NOT PICK THEM UP, AT WHAT POINT DOES THE CUSTOMER GET TO KEEP THE GOODS?

ALL OF THE ABOVE

THE "NOTICE OF CANCELLATION" THAT MUST BE PROVIDED TO THE BUYER AT THE TIME OF THE SALE

MUST BE COMPLETE AND IN DUPLICATE PROVIDING:

1 NAME OF SELLER

2 ADDRESS OF PLACE OF BUSINESS

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?