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Occupational Code: Article 24 Sections 339.2401-2412 Questions With Complete Solutions What are the three definitions for a Residential Builder correct answer: 1. a person engaged in the construction of a residential structure or a combination residential and commercial structure who...undertakes with another... for the erection, construction, replacement, repair, alteration, or an addition to, subtraction from, improvement, wrecking of, or demolition of, a residential structure or combination residential and commercial structure; 2. a person who manufactures, assembles, constructs, deals in, or distributes a residential or combination residential and commercial structure which is pre-fabricated, preassembled, pre- cut, prepackaged, or shell housing; 3. a person who erects a residential structure or a combination residential and commercial structure except for the person's own use and occupancy on the person's property Residential Maintenance & Alteration Contractor correct answer: a person who... undertakes with another for the repair, alteration, or an addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure or combination residential and commercial structure, or building of a garage, or laying of concrete on residential property, or who engages in the purchase, substantial rehabilitation or improvement, and resale of a residential structure... What are the three instances that would exclude a worker from being defined as a M&A contractor? correct answer: i. If the work is for the person's own use and occupancy. ii. If the rehabilitation or improvement work of residential type property or a structure is contracted for, with, or hired entirely to be done and performed for the owner by a person licensed under this article. iii. If work is performed by a person employed by the owner to perform work for which the person is licensed by the state. Residential Structure correct answer: a premises used or intended to be used for a residence purpose and related facilities appurtenant to the premises, used or intended to be used, as an adjunct of residential occupancy Salesperson correct answer: an employee or agent, other than a qualifying officer, of a licensed residential builder or residential maintenance and alteration contractor, who... sells or attempts to sell, negotiates or attempts to negotiate, solicits for or attempts to solicit for, obtains or attempts to obtain a contract or commitment for, or furnishes or attempts or agrees to furnish, the goods and services of a residential builder or residential maintenance and alteration contractor, except a person working for a licensed residential builder or residential maintenance and alteration contractor who makes sales which are occasional and incidental to the person's principal employment Wages correct answer: money paid or to be paid on an hourly or daily basis by an owner, lesser, or occupant of a residential structure or combination residential and commercial structure as consideration for the performance of personal labor on the contractor, or in which a division of the operation is made in contracts of amounts less than $600.00, to evade this act. (g) An electrical contractor who is licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881 to 338.892 of the Michigan Compiled Laws. This exemption applies only to the electrical installation, electrical maintenance, or electrical repair work performed by the electrical contractor. (h) A plumbing contractor licensed under Act No. 266 of the Public Acts of 1929, as amended, being sections 338.901 to 338.917 of the Michigan Compiled Laws. This exemption applies only to plumbing installation, plumbing maintenance, or plumbing repair work performed by the plumbing contractor. (i) A mechanical contractor who is licensed under the mechanical contractors act. This exemption applies only to mechanical installation, mechanical maintenance, or mechanical repair work performed by the mechanical contractor. What is outlined in Occupational Code: Article 24 Section 339.2404? correct answer: • Evidence of good moral character • Proof of identity • Examination • Issuance of residential maintenance and alteration contractor's license • Scope of crafts and trades • Place of business • Branch office license • Duration of license • Renewal • Documentation of continuing competency requirements Per §339.2404, the department may require an applicant, a licensee, or each partner, trustee, director, officer, member, or shareholder of an applicant or licensee to submit evidence of what? correct answer: Good moral character Per §339.2404, before the department issues a license, an applicant shall submit a copy of his or her (1)_____ or (2)_____ to the department. correct answer: (1) operator's license (2) state personal identification card Which section of Occupational Code: Article 24 requires that an applicant for a license under this article pass an examination that establishes that the applicant has a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and the statutes relating to the applicant's licensure. correct answer: §339.2404 Which section of Occupational Code: Article 24 requires a residential builder or residential maintenance and alteration contractor to maintain a place of business in Michigan? correct answer: §339.2404 True or False. If a residential builder or residential maintenance and alteration contractor maintains more than 1 place of business in this state, the department shall issue a branch office license to the builder or contractor for each place of business maintained by the builder or contractor. correct answer: True Which section of Occupational Code: Article 24 sets the three year duration for licenses? correct answer: §339.2404 True or False. An applicant for renewal of a residential builder or maintenance and alteration contractor license does not need a current copy of the Michigan residential code. correct answer: False Per §339.2404, a licensee shall maintain documentation for how long of activities that meet the continuing competency requirements under Occupational Code: Article 24? correct answer: at least 5 years Per §339.2404a, what information must be provided as part of contract? correct answer: information relating to licensee's individual license and to any license issued to that person as a qualifying officer of another entity What is outlined in Occupational Code: Article 24 Section 339.2404b? correct answer: • Licensure as residential builder or residential maintenance and alteration contractor • Completion of prelicensure course of study • Disciplinary action • Continuing competency requirements • Approved courses • Subject matter • Rules • Alternate forms of continuing competency • Department audit • Application for inactive status • Designation of licensee as inactive contractor, or held a license as a qualifying officer of a licensed residential builder or residential maintenance and alteration contractor, before January 1, 2009, he or she has held a license for not more than two 3-year license cycles, and the department has not taken disciplinary action against him or her for a violation of this act or a rule promulgated under this act, he or she must successfully complete at least (1) how many hours of activities that demonstrate continuing competency in each 3- year license cycle that includes at least (2) how many hours of codes, (3) how many hours of safety, and (4) how many hours of legal issues described in this subsection. correct answer: (1) 3 (2) 1 (3) 1 (4) 1 Per §339.2404b, if an individual licensee obtained their initial license as a residential builder or a residential maintenance and alteration contractor on or after January 1, 2009, the licensee has held a license for more than two 3-year license cycles, and the department has not taken disciplinary action against them for a violation of this act or a rule promulgated under this act, they must successfully complete at least (1) how many hours of activities demonstrating continuing competency in each license cycle that includes (2) how many hours of codes, (3) how many hours of safety, and (4) how many hours of legal issues as described in this subsection? correct answer: (1) 3 (2) 1 (3) 1 (4) 1 The subject matter of the prelicensure and continuing competency activities required under §339.2404b may be offered by: correct answer: • a high school • an intermediate school district • a community college • a university • the bureau of construction codes • the Michigan occupational safety and health administration • a trade association • any other proprietary school that is licensed by the department True or False. A licensee's service as a lecturer or discussion leader in an approved course must count toward his or her continuing competency requirements under §339.2404b. correct answer: True True or False. Per §339.2404b, licensees do not have to worry about being audited when they renew their license. correct answer: False True or False. A licensed residential builder or residential alteration and maintenance contractor must apply for inactive status. correct answer: True Does an inactive licensee still need to pay the per-year license fee? correct answer: Yes Per §339.2404b, an applicant for initial licensure as a residential builder or residential maintenance and alteration contractor is exempt from the requirements of subsection (1) if he or she meets all of the following: correct answer: (a) Served in the armed forces. (b) While serving in the armed forces, was engaged in the erection, construction, replacement, repair, alteration, or demolition of buildings or other structures. (c) Was separated from service in the armed forces, and provides to the department a form DD214, form DD215, or any other form that is satisfactory to the department that demonstrates that he or she was separated from that service, with an honorable character of service or under honorable conditions (general) character of service. (d) Has, and provides with his or her application an affidavit signed by a commanding officer, supervisor, or military superior with direct knowledge of the applicant's service that he or she has, entry-level experience in or basic knowledge of each of the areas of competency described in subsection (1)(c). Per §339.2404b, how many attempts to take the examination for a license do applicants that meet the requirements of subsection (11) have before they must take the 60 hour pre licensure course? correct answer: 1 What is outlined in Occupational Code: Article 24 Section 339.2404c? correct answer: Individual denied license because of financial instability. What is outlined in Occupational Code: Article 24 Section 339.2405? correct answer: Application for license by What is outlined in Occupational Code: Article 24 Section 339.2406? correct answer: Nonresident licensee; issuing license to foreign corporation; irrevocable consent to service of process; resolution authorizing consent; service of process or pleading. Who must authorize a foreign corporation's ability to do business in Michigan? correct answer: Corporation and securities commission. What does a foreign corporation's applicant need to file to begin the process of obtaining a license? correct answer: An irrevocable consent to service of process, notarized. What is outlined in Occupational Code: Article 24 Section 339.2407? correct answer: Licensing salesperson in employ of 1 builder or contractor; application for transfer and issuance of new license; submission of salesperson's license application. What happens when a salesperson desires to change employment from 1 residential builder or maintenance and alteration contractor to another? correct answer: The license shall be forwarded to the department and application made for a transfer and the issuance of a new license under the salesperson's new employer. Per §339.2407, who must submit the application for a salesperson's license? correct answer: The employing residential builder or residential maintenance and alteration contractor. What Act repealed Occupational Code: Article 24 Section 339.2408 and when? correct answer: Act 463 in 1988, but wasn't in effect until September 1st of 1989. True or False. A salesperson shall be licensed in the employ of only 1 residential builder or maintenance and alteration contractor. correct answer: True What is outlined in Occupational Code: Article 24 Section 339.2409? correct answer: Reporting certain changes. Per §339.2409, a licensee shall report to the department a change of (1)_____ or (2)_____ or a change of (3)______ or (4)_______of the partnership, association, or corporation holding a license under this article within (5)____ days after the change occurs. correct answer: (1) name (2) address (3) members (4) addresses (5) 30 What is outlined in Occupational Code: Article 24 Section 339.2410? correct answer: Repeating examination not required when making application for additional license. True or False. A M & A contractor who currently holds a license and makes application for a resident builders' license shall not be required to take an examination for that license. correct answer: False True or False. A person or qualifying officer for a corporation or member of a partnership or other business association who currently holds a residential builder or maintenance and alteration contractor license shall not be required to repeat an examination for that license when making application for an additional license. correct answer: True What is outlined in Occupational Code: Article 24 Section 339.2411? correct answer: Complaint; conduct subject to penalty; violations; review; administrative proceedings regarding workmanship; order of default; "verified complaint" defined. Per §339.2411, a complaint filed under this section or article 5, or both, shall be made within ____ months after the latest of the following regarding a residential structure or a combination of residential and commercial structure as follows: (a) In the case of a maintenance and alteration contract: (i) Completion. (ii) Occupancy. (iii) Purchase. (b) In the case of a project requiring an occupancy permit: (i) Issuance of the certificate of occupancy or temporary certificate of occupancy. partner, or associate for an unlicensed person, allowing one's license to be used by an unlicensed person, or acting as or being an ostensible licensed residential builder or licensed residential maintenance and alteration contractor for an undisclosed person who does or shall control or direct, or who may have the right to control or direct, directly or indirectly, the operations of a licensee. (k) Acceptance of a commission, bonus, or other valuable consideration by a salesperson for the sale of goods or the performance of service specified in the article from a person other than the residential builder or residential maintenance and alteration contractor under whom the person is licensed. (l) Becoming insolvent, filing a bankruptcy action, becoming subject to a receivership, assigning for the benefit of creditors, failing to satisfy judgments or liens, or failing to pay an obligation as it becomes due in the ordinary course of business. (m) Workmanship not meeting the standards of the Michigan residential code as promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531. What Act outlines the use of and punishment for mishandling asbestos? correct answer: The asbestos abatement contractors licensing act, 1986 PA 135, MCL 338.3101 to 338.3319. Notwithstanding article 5, the following apply to administrative proceedings regarding workmanship under subsection (2)(m): correct answer: (a) A complaint submitted by an owner shall describe in writing to the department the factual basis for the allegation. The homeowner shall send a copy of the initial complaint to the licensee concurrent with the submission of the complaint to the department. (b) The department shall presume the innocence of the licensee throughout the proceeding until the administrative law hearing examiner finds otherwise in a determination of findings of fact and conclusions of law under article 5. The licensee has the burden of refuting evidence submitted by a person during the administrative hearing. The licensee also has the burden of proof regarding the reason deficiencies were not corrected. (c) Upon receipt of a building inspection report issued to the department by a state or local building enforcement official authorized to do so under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531, which report verifies or confirms the substance of the complaint, the department shall send by certified mail a copy of the verified complaint to the licensee. If the department does not send a copy of the verified complaint within 30 days after receipt of the building inspection report, the department shall not assess a fine against the licensee under article 6, but the department may pursue restitution, license suspension, or other remedies provided under this act. (d) A licensee may contractually provide for an alternative dispute resolution procedure to resolve complaints filed with the department. The procedure shall be conducted by a neutral third party for determining the rights and responsibilities of the parties and shall be initiated by the licensee, who shall provide notice of the initiation of the procedure to the complainant by certified mail not less than 30 days before the commencement of that procedure. The procedure shall be conducted at a location mutually agreed to by the parties. (e) The department shall not initiate a proceeding against a licensee under this subsection if the licensee has contractually provided for an alternative dispute resolution procedure that has not been utilized and completed unless it is determined that the licensee has not complied with a decision or order issued as a result of that alternative dispute resolution procedure, that alternative dispute resolution procedure was not fully completed within 90 days after the filing of the complaint with the department, or an alternative dispute resolution procedure meeting the requirements of subdivision (d) is not available to the complainant. (f) The complainant shall demonstrate that notice has been provided to the licensee describing reasonable times and dates that the residential structure was accessible for any needed repairs and proof acceptable to the department that the repairs were not made within 60 days after the sending of the notice. This subdivision does not apply if the department determines a necessity to safeguard the structure or to protect the occupant's health and safety and, in such case, the department may utilize any remedy available under section 504(3). (g) If the owner and licensee have agreed contractually on mutually acceptable performance guidelines relating to workmanship, the department shall consider those guidelines in its evaluation of a complaint. The guidelines shall be consistent (d) A person or qualifying officer for a corporation or member of a partnership or other business association who currently holds a residential builder or maintenance and alteration contractor license shall not be required to repeat an examination for that license when making application for an additional license. (e) Failure of the person bringing a complaint against a licensee to utilize a contractually provided alternative dispute resolution procedure shall be an affirmative defense to an action brought in a court of this state against a licensee under this article. (f) A person may engage in the business of or act in the capacity of a residential builder or a M&A contractor or salesperson in this state without having a license if they are a person working on 1 undertaking or project by 1 or more contracts, the aggregate contract price for which labor, material, and any other item is less than $600.00. (g) A licensee shall report to the department a change of name or address or a change of members or addresses of the partnership, association, or corporation holding a license under this article within 30 days after the change occurs. (h) The department shall require that an applicant for a license under this article pass an examination that establishes that the applicant has a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and the statutes relating to the applicant's licensure. (i) A license shall not be issued to a foreign corporation unless the corporation is authorized to do business in this state by the corporation and securities commission. (j) Upon receipt of a building inspection report issued to the department by a state or local building enforcement official authorized to do so under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531, which report verifies or confirms the substance of a complaint, the department shall send by certified mail a copy of the verified complaint to the licensee. If the department does not send a copy of the verified complaint within 30 days after receipt of the building inspection report, the department shall not assess a fine against the licensee under article 6, but the department may pursue restitution, license suspension, or other remedies provided under this act. (k) A licensee shall, as part of the contract, provide information relating to his or her individual license and to any license issued to that person as a qualifying officer of another entity. (l) An application for a salesperson's license shall be submitted by the employing residential builder or residential maintenance and alteration contractor. (m) If an applicant for initial licensure as a residential builder or residential maintenance and alteration contractor, whom was excluded from having to take the 60-hour pre-licensure course due to certain military association and other specific exceptions, does not pass the examination for that license the first time he or she takes the examination, that applicant may not retake the examination until he or she successfully completes a prelicensure course of study. (n) The department shall post on its website any final order of the board and the date it was issued. The posting shall occur within 30 days after the final order is issued. correct answer: (a) §339.2408 (b) §339.2405 (c) §339.2404c (d) §339.2410 (e) §339.2412 (f) §339.2403 (g) §339.2409 (h) §339.2404 (i) §339.2406 (j) §339.2411 (k) §339.2404a (l) §339.2407 (m) §339.2404b (n) §339.2411a