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MHIC NASCLA CONTRACTORS EXAM REVIEW 10 days - Answer: ✔✔How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? 2 - Answer: ✔✔How many contractors may a salesperson represent?
Typology: Exams
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10 days - Answer: ✔✔How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? 2 - Answer: ✔✔How many contractors may a salesperson represent? both a and b - Answer: ✔✔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 $50,000 - Answer: ✔✔What is the minimum amount of liability insurance needed? true - Answer: ✔✔An applicant for licensure must have 2 years trade experience or comparable educational training.
$250 - Answer: ✔✔What is the cost of the initial application fee for a home improvement contractors' license? All of the above - Answer: ✔✔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 - Answer: ✔✔The financial information provided by an applicant is public information. 10 days - Answer: ✔✔If an application for a license is denied, the applicant can request a hearing within ______________ after the notice of denial is mailed. True - Answer: ✔✔A salesperson will not be issued a license until the salesperson becomes employed or contractually involved with a licensed contractor. no more than $5 0 - Answer: ✔✔What is the fee to place a license on inactive status?
All of the above - Answer: ✔✔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 - Answer: ✔✔Must a contractor, sub-contractor, or salesperson who places their license on inactive status pay a fee to renew an inactive license? 10 days - Answer: ✔✔How many days does a licensee have to notify the Commission of change in control in ownership, management, address or trade name? 2 - Answer: ✔✔How many contractors may a salesperson represent? No - Answer: ✔✔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 - Answer: ✔✔When a sales person is no longer associated with a company they represented, the contractor must: all of the above - Answer: ✔✔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 - Answer: ✔✔A contractor may not pay a subcontractor who is required to be licensed unless the subcontractor holds the required license. False - Answer: ✔✔Licensed Home Improvement Contractors are also required to hold a construction license issued by the Clerk of the Court under Title 17. actual loss - Answer: ✔✔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.
$100 - Answer: ✔✔What is the fee a Home Improvement Contractor must pay into the Guaranty Fund before the Commission will issue a license? $20,000.00 - Answer: ✔✔What is the maximum amount of money the Commission will award to any one claimant from the Guaranty Fund? $100,000.00 - Answer: ✔✔What is the maximum amount of money the Commission will pay out of the fund concerning the affairs of any one contractor? No - Answer: ✔✔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 - Answer: ✔✔How long does a claimant have to bring a claim against the Guaranty Fund? 10 days - Answer: ✔✔How many days does a contractor have to respond in writing to the copy of a claim that was sent by the Commission? Yes - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔In addition to full reimbursement of the fund, a contractor is responsible to pay at least ___________ interest on the amount to reimburse. True - Answer: ✔✔The state can record a lien against any real property owned by the contractor for a debt owed to the fund. True - Answer: ✔✔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 - Answer: ✔✔A home improvement contract in compliance with the home improvement laws would include all of the following except: True - Answer: ✔✔A salesperson may not represent 2 contractors at the same time for the same project.
No - Answer: ✔✔Can a salesperson legally accept money for themselves from the customer? True - Answer: ✔✔It is against the law for building and permits departments to issue a permit to a contractor without the contractor's license number. True - Answer: ✔✔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 - Answer: ✔✔What is the maximum fine for contracting without a license - first offense? $5,000 and/or 2 years in jail or both - Answer: ✔✔What is the maximum fine for contracting without a license - second offense? Yes - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔A licensed salesperson can only sell the services of licensed contractor or subcontractors. True - Answer: ✔✔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 - Answer: ✔✔All advertising has to provide the identifier "Maryland Home Improvement Commission License No ______________" or "MHIC#__________". $5,000 - Answer: ✔✔What is the maximum penalty the Commission may impose upon a contractor, licensed or unlicensed, per violation of these laws: True - Answer: ✔✔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 - Answer: ✔✔An applicant must provide to the Commission, a credit report with their application. 10 days - Answer: ✔✔How many days does a contractor have to respond to a receipt of a claim from the commission? perform repairs for a homeowner. - Answer: ✔✔A Home Improvement Contractor is a person who offers to... $500 - Answer: ✔✔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. - Answer: ✔✔What is the MAXIMUM amount that a home improvement contactor may pay to a homeowner for referring a client to the contractor? 6 months. - Answer: ✔✔An applicant was denied a license after a hearing. When may the applicant reapply? No license is required. - Answer: ✔✔What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? 60 days. - Answer: ✔✔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. - Answer: ✔✔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 - Answer: ✔✔A renewal notice MUST be mailed by the Commission within how many months of the license expiration date?
expire. - Answer: ✔✔A license that is NOT renewed will... regulate, quality - Answer: ✔✔A local county or municipality may ________ the _______ of home improvements. Baltimore. - Answer: ✔✔The office of the Home Improvement Commission is located in... Executive Director - Answer: ✔✔The official recordkeeper of the Home Improvement Commission, is the _________ ________ of the Commission Investigative staff of the Home Improvement Commission. - Answer: ✔✔Who investigates complaints against Home Improvement licensees? 1 year. - Answer: ✔✔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. - Answer: ✔✔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. - Answer: ✔✔All door-to-door sales contracts MUST include (what two things)? $1,175 - Answer: ✔✔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. - Answer: ✔✔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! - Answer: ✔✔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:
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. - Answer: ✔✔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. - Answer: ✔✔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. - Answer: ✔✔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. - Answer: ✔✔Annual Company Overhead No - Answer: ✔✔When interviewing a person for employment, is it legal to ask them about their mental health history? True - Answer: ✔✔Employers are required to report a new employee or rehired employee to the State Directory of New Hires. Yes - Answer: ✔✔Does home improvement include work done on an individual condominium unit? Yes - Answer: ✔✔Does home improvement include work done on a swimming pool? Yes - Answer: ✔✔Does a home improvement contract HAVE to be in writing in order to preserve your lien rights? Subcontractors - Answer: ✔✔Contractors who can only contract with a contractor or a subcontractor are:
Cannot - Answer: ✔✔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 - Answer: ✔✔A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement. 7 - Answer: ✔✔How many members are there in the Maryland Home Improvement Commission? 3 - Answer: ✔✔Of the 7 members on the Commission, how many are experienced in home improvement? 4 Years - Answer: ✔✔What is the term of a member on the Commission? Associated Answers 5 years - Answer: ✔✔How long must a person be a citizen and member of Maryland before they can be appointed to the Commission? True - Answer: ✔✔It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission.
12 times a year - Answer: ✔✔How often does the Commission hold meetings at a minimum? Executive Director - Answer: ✔✔The _______________ is a full time employee of the State. the Director of the Commission - Answer: ✔✔People hired to investigate complaints about home improvement projects work under:
I- 9 - Answer: ✔✔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 - Answer: ✔✔What Federal law provides employers with their minimum wage and overtime requirements? No - Answer: ✔✔Do employers have to pay overtime pay to employee who works on a holiday? True - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔Employers in Maryland are required to report their payroll and pay unemployment insurance taxes on their Quarterly Contribution Report 1 - Answer: ✔✔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
Department of Labor, Licensing and Regulation - Answer: ✔✔What governmental department in Maryland administers the Laws for Unemployment? 20 days - Answer: ✔✔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 - Answer: ✔✔Which of the following rates is for unemployment insurance that is the average rate paid by all employers over the last five years? True - Answer: ✔✔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 - Answer: ✔✔Can an employer legally pay an hourly wage earner only once a month? No - Answer: ✔✔Can an employer, as a form of disciplinary action, legally doc an employee's earned wage? $7.25 /hr - Answer: ✔✔What is the federal minimum wage?
True - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔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 - Answer: ✔✔Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol for a "legitimate business purpose".? True - Answer: ✔✔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 - Answer: ✔✔Workweek Defined under FLSA
discrimination". - Answer: ✔✔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." - Answer: ✔✔Family and Medical Leave Act This law limits the amount of income that may be legally withheld from an employees income - Answer: ✔✔Wage Garnishment Law. 1.Medical Expenses
60 days - Answer: ✔✔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 % - Answer: ✔✔In addtion to full reimbursement of the fund, a contractor is responsible to pay at least _________interest on the amount to reimburse. True - Answer: ✔✔The state can record a lien against any real property owners by the contractor for a debt owed to the fund. True - Answer: ✔✔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 - Answer: ✔✔A home improvement contract in compliance with the home improvement laws would include all of the following except True - Answer: ✔✔A salesperson may not represent 2 contractors at the same time for the same project.