MHIC NASCLA CONTRACTORS EXAM REVIEW WITH 100% CORRECT ANSWERS 2024, Exams of Advanced Education

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MHIC NASCLA CONTRACTORS EXAM REVIEW WITH 100% CORRECT ANSWERS 2024 Does home improvement include work done on an individual condominium unit? - Correct Answer-Yes Does home improvement include work done on a swimming pool? - Correct Answer-Yes Does a home improvement contract HAVE to be in writing in order to preserve your lien rights? - Correct Answer-Yes Contractors who can only contract with a contractor or a subcontractor are: - Correct Answer-Subcontractors 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. - Correct Answer- Cannot pg. 1 professoraxe l A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement. - Correct Answer-Can How many members are there in the Maryland Home Improvement Commission? - Correct Answer-7 Of the 7 members on the Commission, how many are experienced in home improvement? - Correct Answer-3 What is the term of a member on the Commission? Associated Answers - Correct Answer-4 Years How long must a person be a citizen and member of Maryland before they can be appointed to the Commission? - Correct Answer-5 years It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission. - Correct Answer-True pg. 2 professoraxe l An applicant for licensure must have 2 years trade experience or comparable educational training. - Correct Answer-true What is the cost of the initial application fee for a home improvement contractors' license? - Correct Answer-$250 The Commission can ask an applicant for information about the applicant's... 1 character 2 experience 3 financial stability 4 all of the above - Correct Answer-All of the above The financial information provided by an applicant is public information. - Correct Answer-No If an application for a license is denied, the applicant can request a hearing within ______________ after the notice of denial is mailed. - Correct Answer-10 days pg. 5 professoraxe l A salesperson will not be issued a license until the salesperson becomes employed or contractually involved with a licensed contractor. - Correct Answer-True What is the fee to place a license on inactive status? - Correct Answer-no more than $50 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. - Correct Answer-All of the above Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license? - Correct Answer-Yes How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? - Correct Answer-10 days pg. 6 professoraxe l How many contractors may a salesperson represent? - Correct Answer-2 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? - Correct Answer-No When a sales person is no longer associated with a company they represented, the contractor must: - Correct Answer-give the commission written notice 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 - Correct Answer-all of the above pg. 7 professoraxe l reimburse the fund in full, the Commission may sue the contractor for reimbursement. - Correct Answer-30 days In addition to full reimbursement of the fund, a contractor is responsible to pay at least ___________ interest on the amount to reimburse. - Correct Answer-10 percent The state can record a lien against any real property owned by the contractor for a debt owed to the fund. - Correct Answer- 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. - Correct Answer-True A home improvement contract in compliance with the home improvement laws would include all of the following except: - Correct Answer-Names and license numbers of subcontractors A salesperson may not represent 2 contractors at the same time for the same project. - Correct Answer-True pg. 10 professoraxe l Can a salesperson legally accept money for themselves from the customer? - Correct Answer-No It is against the law for building and permits departments to issue a permit to a contractor without the contractor's license number. - Correct Answer-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. - Correct Answer-True What is the maximum fine for contracting without a license - first offense? - Correct Answer-$1,000 and/or 6 months in jail or both What is the maximum fine for contracting without a license - second offense? - Correct Answer-$5,000 and/or 2 years in jail or both 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? - Correct Answer-Yes pg. 11 professoraxe l Can a contractor decide to use a material other than specified in the contract documents without getting permission from the owner? - Correct Answer-No Contractors may not: 1 misrepresent their service or product 2 make false promises 3 lie on their license application 4 all of the above - Correct Answer-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 - Correct Answer-All of the above pg. 12 professoraxe l 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)? - Correct Answer-60 days. 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 - Correct Answer-nothing. No service fee may be collected. A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? - Correct Answer-1 month A license that is NOT renewed will... - Correct Answer-expire. A local county or municipality may ________ the _______ of home improvements. - Correct Answer-regulate, quality The office of the Home Improvement Commission is located in... - Correct Answer-Baltimore. pg. 15 professoraxe l The official recordkeeper of the Home Improvement Commission, is the _________ ________ of the Commission - Correct Answer-Executive Director Who investigates complaints against Home Improvement licensees? - Correct Answer-Investigative staff of the Home Improvement Commission. 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? - Correct Answer-1 year. The Commission MUST give a MINIMUM of how many days notice to a license about a hearing on disciplinary action against the licensee? - Correct Answer-10 days. All door-to-door sales contracts MUST include (what two things)? - Correct Answer-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? - Correct Answer-$1,175 pg. 16 professoraxe l A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until... - Correct Answer-noon on Thursday, September 27. Estimate Planning - Correct Answer-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! The Quantity Take-off Method involves - Correct Answer- 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. pg. 17 professoraxe l 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. Annual Company Overhead - Correct Answer-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. When interviewing a person for employment, is it legal to ask them about their mental health history? - Correct Answer-No Employers are required to report a new employee or rehired employee to the State Directory of New Hires. - Correct Answer-True pg. 20 professoraxe l What Federal form are employers required to complete within 3 days of their hire for the U.S. Customs and Immigrations Service? - Correct Answer-I-9 What Federal law provides employers with their minimum wage and overtime requirements? - Correct Answer-Fair Labor Standard Act Do employers have to pay overtime pay to employee who works on a holiday? - Correct Answer-No The Wage Garnishment Law prohibits an employer from firing an employee whose pay is garnished for payment of a single debt. - Correct Answer-True 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 - Correct Answer-to detect benefits fraud and to enforce child support orders pg. 21 professoraxe l both b and c Employers in Maryland are required to report their payroll and pay unemployment insurance taxes on their Quarterly Contribution Report - Correct Answer-True How many employees must an employer have before they are required to purchase Workers Compensation Insurance? - Correct Answer-1 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 - Correct Answer-all of the above are benefits provided to an injured employee if needed 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? - Correct Answer-10 days pg. 22 professoraxe l Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol for a "legitimate business purpose".? - Correct Answer-True Minors between 14 and 17, in order to be gainfully employed, must have a work permit. - Correct Answer-True Workweek Defined under FLSA - Correct Answer-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 Required Recordkeeping. The following records must be kept and preserved for at least three years. - Correct Answer-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") pg. 25 professoraxe l 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 Willful violations of the FLSA can result in significant fines. - Correct Answer-A violator may be fined up to $10,000, and if found guilty a second time may be imprisoned. Age Discrimination in Employment Act of 1967 - Correct Answer-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". Family and Medical Leave Act - Correct Answer-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 pg. 26 professoraxe l treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness." Wage Garnishment Law. - Correct Answer-This law limits the amount of income that may be legally withheld from an employees income There are 4 components to Workers' Compensation: - Correct Answer-1.Medical Expenses 2. Disability Pay 3. Vocational Rehabilitation 4. Benefits to dependents Employers should submit a Combined Registration Form - Correct Answer-no later than 20 days after the first day of business. Required Postings. - Correct Answer--Wage and Hour Fact Sheet -Equal Pay for Equal Work -Employment of Minors pg. 27 professoraxe l A salesperson may not represent 2 contractors at the same time for the same project. - Correct Answer-True Can a sales person legally accept money for themselves from the customer - Correct Answer-No It is against the law for building and permits departments to issue a permit to contractor without the contractors license number. - Correct Answer-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 - Correct Answer-True What is the maximum fine for contracting without a license- second offense - Correct Answer-$5,000 and/or 2 years in jail or both 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? - Correct Answer-Yes pg. 30 professoraxe l Can a contractor decide to use material other than specified in the contract documents without getting permission from the owner? - Correct Answer-No Contractors may not : - Correct Answer-Lie on their license application Make false promises Misrepresent their service or product 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 : - Correct Answer-Fraud An illegal act A misdemeanor All of the about 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? - Correct Answer-True pg. 31 professoraxe l All advertising has to provide the identifier "Maryland home improvement commission license no___________"or "MHIC - Correct Answer-True What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws - Correct Answer-$5,000 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. - Correct Answer-True An applicant must provide to the commission, a credit report with their application. - Correct Answer-True How many days does a contractor have to respond to a receipt of a claim from commission? - Correct Answer-10 days How many members are there in the Maryland home improvement commission? - Correct Answer-9 members pg. 32 professoraxe l If a customer cancels their transaction with you and agrees to ship the purchased item back to the seller, who pays for the shipping? - Correct Answer-the seller 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? - Correct Answer-20 days (NOT 20 business days!) 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 - Correct Answer-All of the above A seller, by law, has to, at the time of sale, orally explain to the customer of their right to cancel. - Correct Answer-True pg. 35 professoraxe l 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 - Correct Answer-all of the above 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. - Correct Answer-$25.00 Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol? - Correct Answer- pg. 36 professoraxe l