MHIC NASCLA CONTRACTORS EXAM REVIEW WITH COMPLETE SOLUTIONS, Exams of Engineering

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MHIC NASCLA CONTRACTORS EXAM REVIEW WITH COMPLETE SOLUTIONS Can an employer legally require an employee to be tested for the illegal use of drugs and alcohol? -Safety and Health Protection on the Job -Equal Opportunity is the Law -Employee Rights for Workers with Disabilities -Your Rights under the Family Leave and Medical Leave Act -FLSA Minimum Wage Poster - ANSWER-Federal postings that may apply to you: -Wage and Hour Fact Sheet -Equal Pay for Equal Work -Employment of Minors -Unemployment Insurance and Benefits -Unemployment Insurance Coverage -Workers' Compensation Commission Notice C-24 -Employment Discrimination is Illegal -Occupational Safety and Health Law (MOSH) - ANSWER-Required Postings. $1,000 and/or 6 months in jail or both - ANSWER-What is the maximum fine for contracting without a license - first offense? $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? $100 - ANSWER-What is the fee a Home Improvement Contractor must pay into the Guaranty Fund before the Commission will issue a license? $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? $20,000.00 - ANSWER-What is the maximum amount of money the Commission will award to any one claimant from the Guaranty Fund? $25.00 - ANSWER-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. $250 - ANSWER-What is the cost of the initial application fee for a home improvement contractors' license? $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? $5,000 - ANSWER-What is the maximum penalty the commission may impose upon a contractor, licensed or unlicensed , per violation of these laws $5,000 - ANSWER-What is the maximum penalty the Commission may impose upon a contractor, licensed or unlicensed, per violation of these laws: $5,000 and/or 2 years in jail or both - ANSWER-What is the maximum fine for contracting without a license - second offense? $5,000 and/or 2 years in jail or both - ANSWER-What is the maximum fine for contracting without a license-second offense $50,000 - ANSWER-What is the minimum amount of liability insurance needed? $500 - ANSWER-What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? $7.25 /hr - ANSWER-What is the federal minimum wage? 1 - ANSWER-How many employees must an employer have before they are required to purchase Workers Compensation Insurance? 1 month - ANSWER-A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? 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? 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") 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. 5 years - ANSWER-How long must a person be a citizen and member of Maryland before they can be appointed to the Commission? 6 months. - ANSWER-An applicant was denied a license after a hearing. When may the applicant reapply? 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. 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)? 7 - ANSWER-How many members are there in the Maryland Home Improvement Commission? 9 members - ANSWER-How many members are there in the Maryland home improvement commission? A violator may be fined up to $10,000, and if found guilty a second time may be imprisoned. - ANSWER-Willful violations of the FLSA can result in significant fines. 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 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. 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. 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 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-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 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 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 all of the above - ANSWER-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 all of the above are benefits provided to an injured employee if needed - ANSWER- 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 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". - ANSWER-Age Discrimination in Employment Act of 1967 Baltimore. - ANSWER-The office of the Home Improvement Commission is located in... 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 Can - ANSWER-A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement. 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. 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 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: * Subcontractors if needed * Project overhead * Company overhead * Add markup for profit being careful to keep your bid competitive - ANSWER-The Quantity Take-off Method involves Department of Labor, Licensing and Regulation - ANSWER-What governmental department in Maryland administers the Laws for Unemployment? Executive Director - ANSWER-The _______________ is a full time employee of the State. No - ANSWER-If a customer made a purchase entirely over the phone or by mail, would this sales be subject to the Door-to-Door Sales Act? 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? No - ANSWER-The financial information provided by an applicant is public information. No - ANSWER-When a buyer initiates the contact and requests a contractor to visit the home to make a repair or perform maintenance, is this sale to repair or maintain this home subject to the Door-to-Door Sales Act? No - ANSWER-When interviewing a person for employment, is it legal to ask them about their mental health history? no later than 20 days after the first day of business. - ANSWER-Employers should submit a Combined Registration Form No license is required. - ANSWER-What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? no more than $50 - ANSWER-What is the fee to place a license on inactive status? 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... 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 Notice of Cancellation - ANSWER-Where applicable, contractors must provide to their customers the form titled, ________________________ at the time of the sale. perform repairs for a homeowner. - ANSWER-A Home Improvement Contractor is a person who offers to... regulate, quality - ANSWER-A local county or municipality may ________ the _______ of home improvements. Subcontractors - ANSWER-Contractors who can only contract with a contractor or a subcontractor are: 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? The cost of labor will vary from job to job. Historical information will help you arrive at an accurate estimate. - ANSWER-Labor Costs The costs of materials can fluctuate, and it is important to be current in your estimate of material costs. Be sure to get several bids from each supplier. Add contingency costs for waste. - ANSWER-Materials the Director of the Commission - ANSWER-People hired to investigate complaints about home improvement projects work under: 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 the name and address of the seller. - ANSWER-All door-to-door sales contracts MUST include (what two things)? the seller - ANSWER-If a customer cancels their transaction with you and agrees to ship the purchased item back to the seller, who pays for the shipping? 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 This law limits the amount of income that may be legally withheld from an employees income - ANSWER-Wage Garnishment Law. 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-A contractor may not pay a subcontractor who is required to be licensed unless the subcontractor holds the required license. True - ANSWER-A licensed salesperson can only sell the services of licensed contractor or subcontractors. True - ANSWER-A salesperson may not represent 2 contractors at the same time for the same project. True - ANSWER-A salesperson may not represent 2 contractors at the same time for the same project. True - ANSWER-A salesperson will not be issued a license until the salesperson becomes employed or contractually involved with a licensed contractor. True - ANSWER-A seller, by law, has to, at the time of sale, orally explain to the customer of their right to cancel. True - ANSWER-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. 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-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. True - ANSWER-All advertising has to provide the identifier "Maryland Home Improvement Commission License No ______________" or "MHIC#__________". True - ANSWER-All advertising has to provide the identifier "Maryland home improvement commission license no___________"or "MHIC true - ANSWER-An applicant for licensure must have 2 years trade experience or comparable educational training. True - ANSWER-An applicant must provide to the commission, a credit report with their application.