NASCLA Home Improvement Salesperson Exam Questions and Answers, Exams of Insurance law

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Home Improvement Salesperson NASCLA 2024-

2025. Questions and Correct Verified Answers.

Graded A

___________ is anything of value. A. A signature B. Consideration C. A date D. A counter offer - ANSD. A counter offer ____________ damages are when an injured party can seek monetary damages for the loss suffered as a result of the breach of a contract. (I. Liquidated, II. Immaterial, III. Stated Damage) A. I. Only B. I. and II. C. I. and III. D. II Only - ANSC. I. and III. ______________ is a provision written into a contract that is used to limit risk in case of labor strikes.

A. Force majeure B. Force divine C. External force D. Deterrent - ANSC. External Force ______________ is when a subcontractor approaches the general contractor after the project was awarded with the intent of lowering the original price. A. Bid shopping B. Bid peddling C. Bid rigging D. None of the above - ANSB. Bid peddling ________________ determine the type of materials or methods used. A. Specifications B. Building codes C. References D. UL - ANSA. Specifications "Door-to-door sale" means a sale, lease or rental of consumer goods or consumer services under single or multiple contracts with a purchase price of _________ or more.

A. $

B. $

C. $

D. None of the above - ANSA. $ A __________ bundles all cost factors for entire task. A. Lump sum B. Cost plus C. Percent completion method D. Unit price method - ANSD. Unit price method A ___________ is used when an owner contracts with one company to complete the construction process from the start to finish and purchase land. A. Single prime B. Design/ build C. Turnkey D. Fast-track - ANSC. Turnkey A _____________ is based on a calculation based off footage multiplied by a unit cost. A. Square-foot method

B. Cost plus method C. Unit price method - ANSA. Square-foot method A "door-to-door" sale includes which of the following transactions? A. Sales conducted entirely by mail B. Sales conducted entirely by phone C. Sales conducted and consummated at place other than the place of business of the seller D. Consummated by phone or mail - ANSC. Sales conducted and consummated at place other than the place of business of the seller A breach of contract may occur when a party:

1. Performs an act prohibited by the contract
2. Prevents other party from preforming it obligations
3. A progress payment is not made on time
4. Refuses to perform the contract A. 1 and 2 only B. 1, 2, 3 and 4 C. 1, 2, and 4 only D. 1, 2, and 3 only - ANSC. 1, 2, and 4 only

A buyer that is 70 years old may cancel home improvement transaction prior to midnight the ________ business day after the transaction. A. 5th B. 7th C. 10th D. 14th - ANSB. 7th A change order is a written agreement between the ____________ and __________ to change the contract. A. Subcontractor; Architect B. Owner, Contractor C. Architect, Contractor D. Both A and B - ANSB. Owner, Contractor A contract may stipulate specific procedures for handling claims. What will be a typical deadline for an arbitration request? A. 30 days B. 21 days C. 45 days D. 15 days - ANSA. 30 days

A contractor cannot accept more than _________ of the contract price as a deposit and may not accept any payment until the contract is signed. A. 1/ B. 1 C. 1/ D. 1/3 - ANSD. 1/ A contractor or salesperson that is guilty of their first violation for acting without a license in Maryland maybe incarcerated for up to _________ and fined up to ________. A. 12 months; $5, B. 3 months; $ C. 0 months; $5, D. 6 months; $1,000 - ANSD. 6 months; $1, A home improvement contract does not include an oral or written agreement between a contractor and an owner for the installation of which of the following? A. Installation of smoke detector B. Heat detector C. Carbon monoxide detector D. All of the above - ANSD. All of the above (I think)

A notice of cancellation should include language regarding that any goods delivered to the buyer under the contract should be made available to the seller and if the seller does not pick them up within ______ days of the date of the notice of cancellation, the buyer may retain or dispose the goods without any further obligation. A. 5 B. 7 C. 10 D. 20 - ANSD. 20 A person who holds the license to provide mold remediation services must obtain insurance in the amount of at least ___________ A. $500, B. $1,000, C. $2,000, D. $1,500,000 - ANSB. $1,000, A person who performs or offers or agrees to perform a home improvement for an owner is considered a _______________. A. Subcontractor B. Employee

C. A license D. Contractor - ANSD. Contractor A quantity take-off method is similar to a__________. A. Lump sum B. Cost plus C. Percent completion D. Unit price method - ANSA. Lump sum A salesman may not represent more than _________ contractor(s) at any one time. A. 1 B. 2 C. 3 D. 4 - ANSB. 2 A salesperson can represent and offer the services of ___________ contractor(s) during a sales presentation for home improvement? A. 3 B. 4 C. 2

D. 1 - ANSD. 1

Acceptance of an offer should typically be made within________ days, but should be stated in the offer. A. 21 B. 45 C. 15 D. 30 - ANSD. 30 According to Maryland Home Improvement Commission Regulations, if you publish a false, misleading or deceptive advertisement it will result in a citation and fine of $_____ for the first offense and $_____ for the second or subsequent offense. A. $500; $1, B. $300; $2, C. $300; $1, D. $500; $1,000 - ANSC. $300; $1, According to NASCLA Home Improvement Salesperson Reference Guide, each contractor is required to maintain general liability insurance in the amount of ____________. A. $65,

B. $50,

C. Any amount over $10, D. Any of the above - ANSB. $50, According to the NASCLA Home Improvement Salesperson Reference Guide contract provisions typically contained in a project manual include_______________? A. Form of Agreement, change orders, index drawings B. Form of agreement, required bonds, index drawings C. Certificate of insurance, change orders, index drawings D. None of the above - ANSA. Form of Agreement, change orders, index drawings According to the NASCLA Home Improvement Salesperson Reference Guide, each home improvement contract that is covered the Door-to-Door Sales Act is required to contain a ____________ attached to the contract. A. Notice to owner B. Notice of cancellation C. Order of the Commission D. Contract fee - ANSB. Notice of cancellation American Indoor Air Quality Council or any other nationally recognized accreditation body that is recognized by the Commission is referred to as _______________.

A. American Indoor Body B. Accreditation Body C. AIAQ Council D. None of the above - ANSB. Accreditation Body An applicant for a contractor license shall have at least ______ of trade experience that is satisfactory to the Commission. A. 4 years B. 1 year C. 3 years D. 2 years - ANSD. 2 years Any person who willfully violates Maryland title 14, Subtitle 3 -- Door-to-Door sales is guilty of a misdemeanor and upon conviction is subject to a fine of not more than _____________ or imprisonment of not more than______ or both. A. $1,000; 1 year B. $500; 3 months C. $1,500; 1 year D. $1,000; 6 months - ANSA. $1,000; 1 year Changes prior to the contract are called ______________

A. Modifications B. Addenda C. Change in contract D. Reason for change - ANSB. Addenda Determining estimated costs contingency markups are generally based on the__________ level of the project. A. Cost B. Planning C. Risk D. Control - ANSC. Risk Each licensed contractor and subcontractor must display their __________ on both sides of all vehicles used to perform home improvement services. A. MHIC# B. Company logo C. Industry D. County and state - ANSA. MHIC#

Failure of a contractor to notify the Commission within______ days of a change of ownership, management, address or trade name, will be charged with a fine of $_____ for their first offense. A. 15; 300 B. 21; 500 C. 30; 1000 D. 10; 500 - ANSD. 10; 500 How many members conform the Maryland Home Improvement commission appointed by the Governor? A. 6 B. 9 C. 12 D. 3 - ANSB. 9 If a contractor refuses to perform or complete a job or if an owner refuses to pay for completed or partial jobs, this is considered a/an_______________ A. Immaterial breach B. Stated damages C. Indemnification D. Material Breach - ANSA. Immaterial breach

If the seller violates any provision of the Maryland Title 14-- Subtitle 3, the buyer may cancel the door-to-door sale by notifying the seller in which of the following manner? A. Verbally or in writing within 5 business days B. In writing within 10 days C. By submitting a cancellation notice D. In any manner and by any means of his intention to cancel - ANSD. In any manner and by any means of his intention to cancel If you receive more than 1/3 deposit at the time of contract signing, the fine is $______ for the first offense. A. $ B. $1, C. $1, D. $300 - ANSA. $ In the _____________ the contract must give the telephone number of the Commission and states that each contractor and subcontractor must hold a current MHIC license. A. Improvement notice B. Contractual note

C. Consumer notice D. Any of the above - ANSC. Consumer notice In the contract documents and project manual the technical specifications are generally organized by a classification system such as_____________ A. CDP System B. TSF Master C. PMS Organizer D. CSI MasterFormat - ANSD. CSI MasterFormat It is unfair trade practice for a seller to fail to refuse or honor any valid notice of cancellation by the buyer within ______ business days after the receipt of that notice to refund all payments made under the contract or sale. A. 5 B. 7 C. 10 D. 14 - ANSC. 10 It is unfair trade practice for a seller to fail to within ________ days of receiving a buyers notice of cancellation, to notify him whether the seller intends to repossess or to abandon any shipped or delivered goods. A. 10

B. 7

C. 5

D. 2 - ANSA. 10

John has a project and his direct cost of his bid is $100,000. The project overhead is 9% the company overhead is 11%. What should the bid price of John's project be after adding the overhead? A. $125, B. $180, C. $150, D. None of the above - ANSA. $125, Labor burden, such as employment taxes and insurance adds _______% to your labor cost? A. 20% B. 40% C. 30% D. 35% - ANSC. 30% Language at the beginning of the contract that provide background of the contract, such as reasons for the parties entering into the contract is referred to as_________________.

A. Colloquium B. Boilerplate C. Recitals D. Form of Agreement - ANSC. Recitals On receipt of a claim the Commission shall send a copy to the contractor allege to be responsible for the actual loss. How many days the contractor must respond in writing? A. 10 days B. 15 days C. 30 days D. 21 days - ANSA. 10 days The best contract used by the owner is the__________. A. Lump sum B. Unit price C. Cost plus D. Percentage markup - ANSA. Lump sum The Commission recommends that all change orders be in____________. A. Writing

B. Oral C. Both A and B D. None of the above - ANSA. Writing The Door-to-Door Sales Act gives consumers the rights to cancel the contract by midnight of the ___________ business day following the sale, or the _________ business day if the buyer is at least 65 years old. A. 4; 6 B. 3; 8 C. 5; 7 D. 5; 6 - ANSC. 5; 7 The Home Improvement Guaranty fund compensates_________________ for the actual loss caused by the acts or omissions of a licensed contractor. A. Subcontractor and salesperson B. Salesperson and homeowner C. Homeowner D. Employee - ANSC. Homeowner The Home Improvement law sets forth that the Commission shall meet once every ________ months.

A. 2

B. 3

C. 1

D. None of the above - ANSA. 2 Under the Construction Management Method, who is responsible to coordinate and manage the construction process? A. General Supervisor B. Project Coordinator C. Development and Construction Director D. None of the above - ANSD. None of the above Using historical information, overhead percentages generally average between _____% and _____% A. 5; 15 B. 4; 20 C. 5; 20 D. 3; 10 - ANSC. 5; 20 Using the square foot method of estimating the project cost is a calculation of the _________ of the project multiplied by _____________.

A. Unit footage; cost standard B. Square inches; unit price C. Square footage; unit cost D. None of the above - ANSC. Square footage; unit cost What are the most common forms of ADR? A. Negotiation, mediation, subjective law, and arbitration B. Negotiation, mediation, collaborative law and arbitration C. Mediation, collaborative law, arbitration, and addenda D. None of the above - ANSC. Mediation, collaborative law, arbitration, and addenda What is considered an indirect cost and not part of the project equipment? A. Specialized tool for the job B. Accounting and legal expenses C. Rent D. Small tools - ANSD. Small tools What is referred to as standard language or clauses used in a legal contract? A. Colloquium B. Settled language

C. Orderly D. Boilerpot - ANSD. Boilerpot When submitting a bid, how many days typically take the bid review process? A. 15 to 30 days B. 21 to 45 days C. 30 to 90 days D. None of the above - ANSC. 30 to 90 days When the contractor provides services and in exchange the owner provides monetary compensation, this is called? A. Consideration B. Compensation C. Honorarium D. Salary - ANSA. Consideration Which are considered sources of contracts according to the NASCLA Home Improvement Salesperson Reference Guide? A. AIA and AGC B. ACA and AGP C. ADR and AIA

D. None of the above - ANSA. AIA and AGC Which are considered types breach of contract? A. Standard, Non-standard B. Material; Immaterial C. Legal breach, illegal breach D. None of the above - ANSB. Material; Immaterial Which are key elements that must be in effect to make a contract binding? A. Bid and acceptance, consideration, competent parties and legal contract B. Offer and acceptance, consideration, competent parties and legal purpose C. Offer and acceptance, negotiation, competent parties and legal purpose D. Offer and acceptance, consideration, legal assistant and liable parties - ANSB. Offer and acceptance, consideration, competent parties and legal purpose Which contracting method is considered a traditional form? A. Single prime B. Traditional state C. Singular prime D. Default form - ANSA. Single prime

Which is not considered a clear phrase to use when advertising that installation is an extra charge? A.Installation at extra cost B. Installation fee may apply C. Plus installation D. Installation extra - ANSB. Installation fee may apply Which of the following does pertain to bid shopping? A. Lowering the original contract price after the bid is accepted B. Collusion when contractors coordinate their bids to a fixed fee C. Contractor reveals original bids D. Subcontractor approaches general contractor with the intent of lowering the bid - ANSC. Contractor reveals original bids Which of the following is considered good ethical conduct in bidding? A. Bid shopping B. Bid peddling C. Bid rigging D. None of the above - ANSD. None of the above Which of the following is not a factor that could impact the cost of the project?

A. Soil Type B. Grading C. List of suppliers D. Vehicle access - ANSC. List of suppliers Which of the following is not considered an unlawful practice for a seller? A. Fail to furnish the buyer a completed receipt or copy of the contract B. Fail to inform the buyer's right to cancel C. Fail or refuse to honor any valid notice of cancellation D. Fail to call or email buyer with a promotion - ANSD. Fail to call or email buyer with a promotion You individually estimate units of material and labor for each task is listed in the estimating framework using the ___________ Method. A. Quantity Take-off B. United price C. Square foot D. None of the above - ANSA. Quantity Take-off