1. What is required of a contractor before performing work under the Maryland
Home Improvement law?
A) A written agreement
B) A valid MHIC license
C) A verbal agreement
D) An estimate of costs
Answer: B) A valid MHIC license
Rationale: Under Maryland law, a contractor must have a valid MHIC license before performing
any home improvement work.
2. What is the maximum number of days a homeowner has to cancel a contract
for home improvement after signing, under Maryland law?
A) 3 days
B) 5 days
C) 7 days
D) 10 days
Answer: C) 7 days
Rationale: Under Maryland law, homeowners have a 7-day cooling-off period to cancel a
contract for home improvement services.
3. Which of the following must be included in a home improvement contract in
Maryland?
A) The contractor’s business hours
B) A start and completion date
C) The contractor’s favorite materials
D) Homeowner’s tax information
Answer: B) A start and completion date
Rationale: Maryland law requires that home improvement contracts include details such as a
start and completion date, among other information.
,4. What is the minimum required bonding amount for a Maryland Home
Improvement Contractor?
A) $5,000
B) $10,000
C) $20,000
D) $50,000
Answer: B) $10,000
Rationale: Contractors licensed under the Maryland Home Improvement law must have a
minimum bond of $10,000.
5. What type of insurance must a contractor have to operate legally under the
Maryland Home Improvement law?
A) Workers' compensation insurance
B) Health insurance
C) Liability insurance
D) Auto insurance
Answer: A) Workers' compensation insurance
Rationale: Maryland contractors must have workers' compensation insurance to cover
employees in case of injury while working on a home improvement project.
6. Which of the following is considered a "home improvement" under Maryland
law?
A) Installing a new heating system
B) Painting a fence
C) Mowing the lawn
D) Building a fence
Answer: A) Installing a new heating system
Rationale: Home improvement is typically defined as work that alters, improves, or repairs a
residential structure, such as installing new heating or air conditioning systems.
, 7. When a contractor performs work under a home improvement contract,
which of the following must be provided to the homeowner?
A) An itemized list of materials used
B) A receipt for payments made
C) A warranty
D) A permit
Answer: B) A receipt for payments made
Rationale: Contractors must provide receipts for any payments made by the homeowner, as part
of Maryland's consumer protection requirements.
8. Which of the following must a contractor do if a customer files a complaint
with the Maryland Home Improvement Commission?
A) Ignore the complaint
B) Respond to the complaint in writing within 20 days
C) Pay a fine
D) Stop all work immediately
Answer: B) Respond to the complaint in writing within 20 days
Rationale: Contractors must respond to complaints filed with the Maryland Home Improvement
Commission within 20 days.
9. What is the penalty for a contractor who operates without a valid MHIC
license in Maryland?
A) $500 fine
B) $1,000 fine or imprisonment for up to 6 months
C) Suspension of business operations
D) No penalty
Answer: B) $1,000 fine or imprisonment for up to 6 months
Rationale: Operating without a valid MHIC license is illegal in Maryland and can result in a fine
of up to $1,000 or imprisonment for up to 6 months.
Home Improvement law?
A) A written agreement
B) A valid MHIC license
C) A verbal agreement
D) An estimate of costs
Answer: B) A valid MHIC license
Rationale: Under Maryland law, a contractor must have a valid MHIC license before performing
any home improvement work.
2. What is the maximum number of days a homeowner has to cancel a contract
for home improvement after signing, under Maryland law?
A) 3 days
B) 5 days
C) 7 days
D) 10 days
Answer: C) 7 days
Rationale: Under Maryland law, homeowners have a 7-day cooling-off period to cancel a
contract for home improvement services.
3. Which of the following must be included in a home improvement contract in
Maryland?
A) The contractor’s business hours
B) A start and completion date
C) The contractor’s favorite materials
D) Homeowner’s tax information
Answer: B) A start and completion date
Rationale: Maryland law requires that home improvement contracts include details such as a
start and completion date, among other information.
,4. What is the minimum required bonding amount for a Maryland Home
Improvement Contractor?
A) $5,000
B) $10,000
C) $20,000
D) $50,000
Answer: B) $10,000
Rationale: Contractors licensed under the Maryland Home Improvement law must have a
minimum bond of $10,000.
5. What type of insurance must a contractor have to operate legally under the
Maryland Home Improvement law?
A) Workers' compensation insurance
B) Health insurance
C) Liability insurance
D) Auto insurance
Answer: A) Workers' compensation insurance
Rationale: Maryland contractors must have workers' compensation insurance to cover
employees in case of injury while working on a home improvement project.
6. Which of the following is considered a "home improvement" under Maryland
law?
A) Installing a new heating system
B) Painting a fence
C) Mowing the lawn
D) Building a fence
Answer: A) Installing a new heating system
Rationale: Home improvement is typically defined as work that alters, improves, or repairs a
residential structure, such as installing new heating or air conditioning systems.
, 7. When a contractor performs work under a home improvement contract,
which of the following must be provided to the homeowner?
A) An itemized list of materials used
B) A receipt for payments made
C) A warranty
D) A permit
Answer: B) A receipt for payments made
Rationale: Contractors must provide receipts for any payments made by the homeowner, as part
of Maryland's consumer protection requirements.
8. Which of the following must a contractor do if a customer files a complaint
with the Maryland Home Improvement Commission?
A) Ignore the complaint
B) Respond to the complaint in writing within 20 days
C) Pay a fine
D) Stop all work immediately
Answer: B) Respond to the complaint in writing within 20 days
Rationale: Contractors must respond to complaints filed with the Maryland Home Improvement
Commission within 20 days.
9. What is the penalty for a contractor who operates without a valid MHIC
license in Maryland?
A) $500 fine
B) $1,000 fine or imprisonment for up to 6 months
C) Suspension of business operations
D) No penalty
Answer: B) $1,000 fine or imprisonment for up to 6 months
Rationale: Operating without a valid MHIC license is illegal in Maryland and can result in a fine
of up to $1,000 or imprisonment for up to 6 months.
