1. Which of the following is required to become a licensed Maryland Home
Improvement Contractor (MHIC)?
A) Proof of 2 years of work experience
B) Completion of an apprenticeship program
C) Passing the MHIC licensing exam
D) Proof of liability insurance
Answer: C) Passing the MHIC licensing exam
Rationale: To obtain an MHIC license, contractors must pass the state’s licensing exam and
meet other requirements such as proof of insurance, but not necessarily an apprenticeship
program.
2. What is the maximum contract amount that can be executed without a written
contract in Maryland for home improvement work?
A) $500
B) $1,000
C) $2,500
D) $5,000
Answer: B) $1,000
Rationale: Under Maryland law, for home improvement contracts under $1,000, a written
contract is not required, but it is still recommended.
3. A homeowner is entitled to a "cooling-off" period in which they can cancel a
home improvement contract. How long is this period?
A) 1 day
B) 3 days
C) 7 days
D) 14 days
Answer: C) 7 days
Rationale: In Maryland, homeowners have a 7-day "cooling-off" period during which they can
cancel a contract without penalty, as long as they provide written notice to the contractor.
,4. If a contractor does not adhere to the terms of a home improvement contract,
the homeowner may file a complaint with which of the following organizations?
A) Maryland Consumer Protection Division
B) Better Business Bureau
C) Maryland Department of Housing and Community Development
D) Maryland State Licensing Board for Contractors
Answer: A) Maryland Consumer Protection Division
Rationale: Homeowners can file complaints with the Maryland Consumer Protection Division
for violations related to home improvement contracts.
5. Which of the following is NOT considered home improvement work under
Maryland law?
A) Installing a new roof
B) Landscaping maintenance
C) Building a deck
D) Remodeling a bathroom
Answer: B) Landscaping maintenance
Rationale: Landscaping maintenance (such as lawn mowing or shrub trimming) is not
considered home improvement under Maryland law, while the other options are.
6. The Maryland Home Improvement Commission (MHIC) requires contractors
to carry which type of insurance?
A) General liability insurance
B) Health insurance
C) Worker’s compensation insurance
D) Property insurance
Answer: A) General liability insurance
Rationale: The MHIC requires home improvement contractors to carry general liability
insurance to protect both the contractor and homeowner in case of accidents or damage during
work.
, 7. Which of the following would be a valid reason for the Maryland Home
Improvement Commission to revoke or suspend a contractor’s license?
A) Failure to pay taxes
B) Failure to advertise
C) Overcharging a client
D) Providing free estimates
Answer: C) Overcharging a client
Rationale: The MHIC may revoke or suspend a contractor's license for unethical practices like
overcharging a client, which violates the principles of fair business conduct.
8. If a contractor fails to provide a written contract for home improvement work,
what is the maximum fine they may face in Maryland?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: B) $1,000
Rationale: Contractors who fail to provide a written contract as required by Maryland law for
home improvement work can face fines up to $1,000.
9. How long must a contractor maintain records of home improvement contracts
in Maryland?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
Answer: B) 3 years
Rationale: Maryland law requires contractors to maintain records of home improvement
contracts and related documents for at least three years.
Improvement Contractor (MHIC)?
A) Proof of 2 years of work experience
B) Completion of an apprenticeship program
C) Passing the MHIC licensing exam
D) Proof of liability insurance
Answer: C) Passing the MHIC licensing exam
Rationale: To obtain an MHIC license, contractors must pass the state’s licensing exam and
meet other requirements such as proof of insurance, but not necessarily an apprenticeship
program.
2. What is the maximum contract amount that can be executed without a written
contract in Maryland for home improvement work?
A) $500
B) $1,000
C) $2,500
D) $5,000
Answer: B) $1,000
Rationale: Under Maryland law, for home improvement contracts under $1,000, a written
contract is not required, but it is still recommended.
3. A homeowner is entitled to a "cooling-off" period in which they can cancel a
home improvement contract. How long is this period?
A) 1 day
B) 3 days
C) 7 days
D) 14 days
Answer: C) 7 days
Rationale: In Maryland, homeowners have a 7-day "cooling-off" period during which they can
cancel a contract without penalty, as long as they provide written notice to the contractor.
,4. If a contractor does not adhere to the terms of a home improvement contract,
the homeowner may file a complaint with which of the following organizations?
A) Maryland Consumer Protection Division
B) Better Business Bureau
C) Maryland Department of Housing and Community Development
D) Maryland State Licensing Board for Contractors
Answer: A) Maryland Consumer Protection Division
Rationale: Homeowners can file complaints with the Maryland Consumer Protection Division
for violations related to home improvement contracts.
5. Which of the following is NOT considered home improvement work under
Maryland law?
A) Installing a new roof
B) Landscaping maintenance
C) Building a deck
D) Remodeling a bathroom
Answer: B) Landscaping maintenance
Rationale: Landscaping maintenance (such as lawn mowing or shrub trimming) is not
considered home improvement under Maryland law, while the other options are.
6. The Maryland Home Improvement Commission (MHIC) requires contractors
to carry which type of insurance?
A) General liability insurance
B) Health insurance
C) Worker’s compensation insurance
D) Property insurance
Answer: A) General liability insurance
Rationale: The MHIC requires home improvement contractors to carry general liability
insurance to protect both the contractor and homeowner in case of accidents or damage during
work.
, 7. Which of the following would be a valid reason for the Maryland Home
Improvement Commission to revoke or suspend a contractor’s license?
A) Failure to pay taxes
B) Failure to advertise
C) Overcharging a client
D) Providing free estimates
Answer: C) Overcharging a client
Rationale: The MHIC may revoke or suspend a contractor's license for unethical practices like
overcharging a client, which violates the principles of fair business conduct.
8. If a contractor fails to provide a written contract for home improvement work,
what is the maximum fine they may face in Maryland?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: B) $1,000
Rationale: Contractors who fail to provide a written contract as required by Maryland law for
home improvement work can face fines up to $1,000.
9. How long must a contractor maintain records of home improvement contracts
in Maryland?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
Answer: B) 3 years
Rationale: Maryland law requires contractors to maintain records of home improvement
contracts and related documents for at least three years.
