NY Home Improvement Contractor Exam Study guide Questions And Answers, Exams of Contract Law

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Study guide Questions And Answers

What is "home improvement" (H.I.)? (C R R R R A A I) - correct answer the construction, repair, remodeling, alteration, rehabilitation, renovation, improvement, or addition to any land or building used as a residence or dwelling place. What parts of a home can a H.I. include? - correct answer Any part of the home OR land (including basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and terraces.) What system installations are part of H.I.? (4) - correct answer Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and Communication systems. What is NOT considered H.I.? - correct answer Construction of a new home or building, Sale of goods or materials in connection with the installation of or application of goods or materials, Work performed on a residence owned or controlled by the state or municipality When is Painting or decoration of a building, residence, home, or apartment considered H.I.? -

Study guide Questions And Answers

correct answer When there is painting work being done as part of other home improvement work. When is Painting or decoration of a building, residence, home, or apartment NOT considered H.I.? - correct answer When it is a standalone job not part of of other home improvement work. Who is a "contractor"? - correct answer Anyone who owns, operates, maintains, conducts, controls, or transacts a home improvement business and undertakes or agrees to perform any home improvement. What legal entity is a contractor required to be? - correct answer A contractor may be an individual, a firm, a company, a partnership, or a corporation. What is a H.I. contract? - correct answer An agreement between a contractor and a consumer or tenant for performance of a home improvement What must a H.I. contract detail? - correct answer All labor, services, and materials to be furnished and performed.

Study guide Questions And Answers

Who is a "salesperson"? - correct answer Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home improvement contract from an owner or tenant. Who must have a DCA license? - correct answer Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a contractor or salesperson must have a DCA license. Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed? - correct answer No What is the maximum amount an H.I. job can be to not require a licensed contractor? - correct answer $ Do plumbers and electricians who do not perform work outside their trade need a H.I. license? - correct answer No, they have their own trade licenses. When would an architect or engineer involved with an H.I. project need a contractor's license? -

Study guide Questions And Answers

correct answer If they are physically performing H.I. functions outside the scope of an architect or engineer. Must a H.I. Contractor license be posted? - correct answer Yes, it must be posted in the Contractor's office where all consumers can see it, or show it to consumers upon request. Change of business address, ownership, management, or trade name must be reported to DCA within how many days? - correct answer 10 days How many business locations can a H.I. Contractor's license cover? - correct answer One. A seperate license is required for each place of business. When and how does a H.I. Contractor's license get renewed? - correct answer About three months before license expiration, DCA will mail a renewal package. It can be renewed by mail, online, or in person at the DCA Licensing Center.

Study guide Questions And Answers

May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner (customer)? - correct answer No, The prime contractor must secure all necessary permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the contract in accordance with state and local building laws. How many years must a H.I. Contractor maintain copies of contracts, books of account, and other records reflecting all transactions related to the home improvement business? - correct answer Six (6) years or the length of time of any contractual guarantee, whichever is longer. What percentage of a customers payments can a Contractor use for administrative, overhead, and other projects? - correct answer The contractor may not use funds received to pay expenses unrelated to the home improvement, unless the home improvement is completed and all expenses for direct labor, material, and subcontractors related to the home improvement have been paid. No work should be performed and no money should be paid until after the ____ day cancellation period? - correct answer 3 days

Study guide Questions And Answers

Can a H.I. Contractor arrange a home loan or a home improvement loan for a consumer? - correct answer No, nor can they act as an agent for, advertise, or promote loans. Must a contractor furnish a consumer with a written estimate? - correct answer Yes, if the consumer requests one. Can a Contractor charge a fee for an estimate? - correct answer Yes, but they must disclose the fee to the consumer before providing the estimate and must include and itemize the fee in the total estimated contract price. What is the fine for false or fraudulent representation? - correct answer A contractor or salesperson who lies is subject to fines of up to $500 for each separate misrepresentation. What becomes of the contract entered into after misrepresentations? - correct answer It may be declared null and void, and contractor may be ordered to pay restitution to the consumer.

Study guide Questions And Answers

What is the prosecution and fine penalties for operating a home improvement business without a license or with a suspended or revoked license? - correct answer Guilty of a misdemeanor and may be prosecuted criminally and subject to up to six (6) months imprisonment and/or $1,000 in fines. What is the prosecution and fine penalties for engaging in unlicensed activity or aiding and abetting the operation of an unlicensed person or business? - correct answer civil prosecution and $100 day fine. Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in connection with unlicensed home improvement work? - correct answer Yes! In what form must a home improvement contract be? - correct answer Every home improvement contract must be in writing and signed by everyone involved. When must the consumer receive a completed, legible copy of the H.I. contract? - correct answer At the time of signing and before any work is done.

Study guide Questions And Answers

Does the H.I. contract have to be in englsh? - correct answer Yes, unless another language was used in any oral (spoken) sales presentation, in which case the contract needs to be in that language and in English. If a consumer wants more work done beyond what's in the original contract, what should a contractor do? - correct answer Provide a written amendment to the contract, which both parties must sign. What information should be at the heading of a H.I. contract? - correct answer contractor's name, office address, telephone number, and DCA license number and the salesperson's name and DCA license number. What dates should be on the H.I. contract? - correct answer the contract date, approximate date when work will begin and date to be substantially completed. What costs must be included in the H.I. contract? - correct answer labor and materials What 3 notices must the H.I include? - correct answer If the owner does not pay the contractor they may have a claim against the owner, that the

Study guide Questions And Answers

contractor is legally required to deposit all payments received prior to completion or the contractor must post a bond or contract of indemnity, and the cancellation notice wording. What schedule should be inclduded with the H.I. contract?

correct answer Schedule of payments and the work/services to be performed if the contract calls for incremental payments. Must a contractor or salesperson provide the consumer with a separate Notice of Cancellation? - correct answer Yes. At the time of signing the contractor or salesperson must attach to the signed contract two copies of a separate, completed form titled "Notice of Cancellation." How much time does the home owner have to cancel the contract? - correct answer Until midnight of the third business day. Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel? - correct answer Yes, verbally and written notice.

Study guide Questions And Answers

What if a contractor or salesperson fails to comply with the provisions requiring oral (spoken) and written notice of the consumer's right to cancel? - correct answer The consumer may cancel the contract at any time. How many days does a contractor or salesperson have to honor valid notice of cancellation? - correct answer 10 business days Do salespersons need to notify DCA about their employers? - correct answer Yes within 48 hours of new employment. What must all advertising and sales literature contain? - correct answer DCA Home Improvement Contractor license number. A "savings" claim in an adv ertisment cannot imply what?

correct answer The amount specified is the selling price. What type of guarantees or warranties can be made? - correct answer Only as long as a defect is likely to show up.

Study guide Questions And Answers

What type of guarantees or warranties can NOT be made?

correct answer "lifetime" guarantees or warranties Who must obtain building and improvement permits? - correct answer The prime contractor. Where does a contractor go to secure a permit for an addition or alteration to a house? - correct answer The New York City Department of Buildings (DOB). Whose responsibility is it to make sure that any addition or alterations meet building code standards and do not violate local zoning laws? - correct answer the H.I. Contractor What is net profit of a job? - correct answer The final profit of any job after expenses. Must a subcontractor be seperately licensed by DCA? - correct answer Yes, this includes electricians and plumbers.

Study guide Questions And Answers

How long can a contractor elect to secure a bond or participate in DCA's Home Improvement Trust Fund? - correct answer Every 2 years