MHIC exam with 100% verified 2024 answers

Home improvement - correct answer the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of the building Excluded (is not a) home improvement - correct answer new home construction or work done to comply with the guarantee of completion for a new building Excluded (is not a) home improvement - correct answer sale of materials, if the seller does not arrange to perform, or does not perform, either directly or indirectly, the installation of the materials Included (is a) home improvement - correct answer construction, improvement, or replacement on the land adjacent to the residents of a driveway, fallout shelter, fence, garage, landscaping, deck, pier, porch or swimming pool Included (is a) home improvement - correct answer installation in the residence of an awning, fire alarm, or storm window Excluded (is not a) home improvement - correct answer work done on commonly owned areas of condominiums Contractor - correct answer a person who performs or offers or agrees to perform a home improvement for an owner. And employee of the owner is not a contractor. Home improvement contract - correct answer an agreement between a homeowner in a contractor to perform a home improvement Handyman licensing - correct answer is required to hold a MHIC license, no matter how small the contract. License renewal time frame - correct answer every two years the licensee must apply Licensing exemption - correct answer an employee of a contractor who is not a salesperson A licensing exemption - correct answer an employee of a licensed contractor who sells the home improvement at a retail establishment A licensing exemption - correct answer a telephone solicitor An exemption from licensing - correct answer an employee of a subcontractor A licensing exemption - correct answer a security system technician An exemption from licensing by MHIC - correct answer someone who holds another state license and who is working with in the scope of that license, such as an architect or plumber, and their salesperson Exam scores are good for how long? - correct answer 2 years Passing exam percentage - correct answer 70% Amount of general liability insurance - correct answer $50,000 Experience required to be licensed - correct answer 2 years of trade experience or comparable educational training Trade experience includes - correct answer participation in a registered apprentice program Trade experience includes - correct answer employment in performing home improvement Trade experience - correct answer employment in performing commercial or residential construction, repairs or renovations Trade experience includes - correct answer participation in a community service or charitable building or renovation program Trade experience includes - correct answer performing repairs and improvements that require a building permit on one's own home or the home of family members Salespersons are licensed as - correct answer an individual Guaranty Fund compensates homeowners for - correct answer actual loss Guaranty Fund - correct answer protects homeowners who hire a licensed home improvement contractors against actual loss caused by an incomplete, incorrect or unworkmanlike job Total maximum guaranty fund payment per contractor - correct answer $100,000 Contractor response time for a complaint - correct answer 10 days Limit at which commission may pay a claim without a hearing - correct answer $5,000 Who must receive a signed copy of the contract prior to work starting? - correct answer homeowner Required to be in a home improvement contract - correct answer contractors name, address, and MHIC license number Required to be in a home improvement contract - correct answer consumer notice that gives telephone number for Commission Required to be in a home improvement contract - correct answer notice of formal mediation of disputes, that the MHIC administers the guaranty fund, homeowner may request that contractor purchase performance bond Required to be in a home improvement contract - correct answer dates of when performance will begin and when it will be substantially completed Required to be in a home improvement contract - correct answer description of home improvement Required to be in a home improvement contract - correct answer deposit, payment, and contractor cannot accept more than 1/3 of contract price as deposit Required to be on the first page of contract - correct answer "this contract creates a mortgage or lien on the property to secure payment and may cause a loss of your property if you fail to pay the amount agreed upon" If a contract contains a mandatory arbitration clause it must include - correct answer the name of the person or organization that will conduct an arbitration If a contract contains a mandatory arbitration clause it must include - correct answer whether any mandatory fees will be charged to the parties for the arbitration If a contract contains a mandatory arbitration clause it must include - correct answer a list of the fee schedule If a contract contains a mandatory arbitration clause it must include - correct answer whether the arbitrator's findings are binding If a contract contains a mandatory arbitration clause it must include - correct answer a disclosure that a claim against the guaranty fund will be stayed until completion of mandatory arbitration What is given to homeowner before the performance of a home improvement? - correct answer a copy of the contract signed by the contractor and homeowner What gives consumers rights to cancel contract within third business day following sale ? - correct answer Door-to-Door Sales Act How many days to return homeowners deposit when homeowner cancel his contract? - correct answer 10 days The 3 business day cancellation clause must be ____________________ . - correct answer in bold faced type with a minimum size of 10 points. The Door-to-Door sales act does not apply to - correct answer consumer goods that are exhibited or consumer services are offered for sale on a continuing basis How many contractors in total may a salesperson represent? - correct answer two During a sales presentation, how many contractors can a salesperson represent? - correct answer only one A salesperson must use a contract form that ___________________________ - correct answer must name the contractor Who is responsible for notifying MHIC when a salesperson joins our leaves the sales team? - correct answer the contractor An advertisement of an MHIC contractor must - correct answer include the MHIC license number and cannot be false, deceptive, or misleading When it is referenced, "Fund" means - correct answer Home Improvement Guaranty Fund "Local authorization prohibited" means - correct answer a county or municipal corporation (city) may not require a business authorization to perform or sell a home improvement The Executive Director of MHIC devotes _______________ duties to office - correct answer full-time The Executive Director of MHIC shall _______________________ - correct answer keep the official records of the Commission An applicant for a contractor license shall have how many years of trade experience? - correct answer 2 years The Commission may not issue a salesperson license unless it _________________ - correct answer has received the written notice of an employment relationship signed by licensed contractor and salesperson Unless a license is renewed for a 2-year term as provided, the license __________________ . - correct answer expires A holder of a contractor license that is on inactive status may not act as a ___________________ - correct answer contractor Notice of hearing for suspension or revocation of license must be sent no later than ______________. - correct answer 10 days A person may not reapply for license within _________________ after the person has a license denied or revoked - correct answer 6 months ____________________ means the cost of restoration, repair, replacement, or completion that arise from unworkmanlike, inadequate, or incomplete home improvement. - correct answer Actual loss At what level must the Commission maintain the home improvement guaranty fund? - correct answer $250,000 The initial assessment fee to the Fund for a contractor license is _______________ - correct answer $100 If the Commission finds that pending claims will cause the fund to fall below $250,000 the commission ___________________________ . - correct answer shall assess each contractor a fee of $50, but not more than $150 in total, in a calendar year. The Commission may not award more than _________________ to one claimant for acts or omissions. - correct answer $20,000 Commission may not award more than ____________________ to all claimants for the acts or omissions of one contractor - correct answer $100,000 The claims limitation is _______________ (time limit in which a claim can be filed against a contractor) - correct answer 3 years How shall the Commission pay approved claims? - correct answer in the order submitted If a contractor does not pay within _________________ after the commission gives notice, the commission may sue for payment. - correct answer 30 days Each home improvement contractor shall - correct answer be in writing and legible; describe clearly each document that it incorporates; and be signed by each party to the home improvement contract To advertise or promote sales, a contractor may not give a prospective customer a tangible item costing more than ___________ . - correct answer $25 A city or county may not issue a permit for a home improvement unless the permit includes the ________________ of a licensed contractor. - correct answer license number Penalty for first conviction of acting as a contractor without a license - correct answer $1,000 fine or imprisonment not exceeding 6 months or both Penalty for second conviction of acting as a contractor without a license - correct answer $5,000 fine or imprisonment not exceeding 2 years or both Penalty for false proof of completion is subject to - correct answer fine not exceeding $5,000, or imprisonment not exceeding 3 years, or both A contractor may not accept a ___________________ before signing a home improvement contract - correct answer payment for deposit MHIC regulations do not apply to performance of mold premediation in an area less than ______________________ . - correct answer 10 sq ft License numbers on vehicles shall be at least _______________ in height. - correct answer 3 inches When advertising guaranties or warranties, the following must be included: - correct answer period of time covered shall be disclosed; and indicate whether items are labor and material only or whether full refunds are offered Definition of business day - correct answer any calendar day except Sunday or major holidays Primary elements of a contract - correct answer offer, acceptance, and consideration Within how many days does Seller need to notify buyer of intention to repossess or abandon shipped or delivered goods? - correct answer 10 days Seller of a contract must inform buyer ___________________ at the time of contract signing of the right to cancel. - correct answer orally A ____________________ is not required to be licensed under Title 17, Subtitle 3. - correct answer marine contractor These individuals are not required to be licensed under MHIC. - correct answer an architect, electrician, plumber, heating, ventilation, and air-conditioning, or refrigeration contractor. Salespersons are subject to the "two" and "one" restrictions. The salesperson can only represent 2 contractors at a time, and when selling can ____________________ . - correct answer sell the product/service of a single contractor during a sales call The current MHIC licensing application fee is $ ____________ of which $ ___________ goes into the guaranty fund. - correct answer $370 and $100 The application fee for an MHIC license is _________________ . - correct answer $370 This amount is deposited into the Guaranty Fund from the initial MHIC license application fee. - correct answer $100 If contractor does not re-pay the commission within _________________ , the Commission may sue for non-payment. - correct answer 30 days If a paid claim from Guaranty fund is not reimbursed within ________________________ , the Commission may request withholding of tax refund to pay debt owed. - correct answer 1 year A salesperson may not __________________________ the name of the contractor. - correct answer use a contract form that does not disclose ________________________ is NOT permitted when obtaining a home improvement contract. - correct answer Misrepresentation This describes making a false promise that is likely to influence, persuade, or induce a buyer to make a home improvement contract. - correct answer misrepresentation It is a ________________________________ to not disclose a material fact when applying for an MHIC license. - correct answer misrepresentation What is best way to to estimate materials? - correct answer with historical data or statistics Who is responsible for providing MSDS (material safety data sheet) - correct answer employer Who provides personal protective equipment? - correct answer employer What is daily maximum penalty for violating EPA lead regulations? - correct answer $37,500 How is overtime calculated? - correct answer after 40 hours a week, then 1.5x hourly rate What are penalties for not making payroll tax deposits (FICA, FED Tax)? - correct answer Penalties of days late penalties, 2%, 5%, 10% If a license is revoked for more than ________________________ , individual will need to take licensing exam again to get licensed. - correct answer 6 months Inspection of work trenches are to occur - correct answer daily OSHA standards require potable water supply to be provided by ____________________ - correct answer tap Who is liable if a claim is filed against a corporation? - correct answer corporation Employers must have an OSHA Emergency Action Plan if they have more than ___________________ employees. - correct answer 10 OSHA requires reporting of fatalities __________________________ . - correct answer within 8 hours EPA requires that only ______________________ can perform painting work on projects on structures built before 1978. - correct answer certified contractors A __________________________ is required to train certified renovators of lead-based paint projects. - correct answer EPA-accredited training provider If you are doing business under a name other than your personal name, ______________________________ - correct answer a trade name needs to be filed with the MD Dept of Assessments and Taxation. The advantages of being a sole proprietor are: - correct answer minimal legal restrictions; simple ownership form; low start up costs; sole ownership of profits; freedom in decision-making process Sole proprietorship includes _________________________ - correct answer unlimited personal liability Liability of Corporations is described as ______________________ . - correct answer generally no personal liability of the shareholders Workers Compensation is required for employers with _________________________ . - correct answer one or more full-time or part-time employees A balance sheet equation is ________________________ - correct answer Assets = Liabilities + Owners' Equity Maryland business income is taxed at _____________ - correct answer 7% The IRS Employer's Tax Guide is called ______________________ . - correct answer Circular E