MARYLAND HOME IMPROVEMENT TEST QUESTIONS WITH COMPLETE VERIFIED SOLUTION 100%

MARYLAND HOME IMPROVEMENT TEST QUESTIONS WITH COMPLETE VERIFIED SOLUTION 100% “What is the maximum deposit a contractor can accept for a project with a total contract price of $1,500? A. $150 B. $500 C. $750 D. $1,500 - CORRECT ANSWER $500" "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? A. 6 months B. 1 year C. 2 years D. 5 years - CORRECT ANSWER 1 YEAR" "The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days D. 20 days - CORRECT ANSWER 10 DAYS" "A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? A. 1 month B. 2 months C. 3 months D. 6 months - CORRECT ANSWER 1 MONTH" "All of the following are considered home improvements EXCEPT A. Repairs to an HVAC system B. Installing a new roof C. Painting the exterior of a house D. Replacing windows - CORRECT ANSWER REPAIRS TO AN HVAC SYSTEM" "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? A. $1,000 B. $1,050 C. $1,125 D. $1,175 - CORRECT ANSWER $1,175" "A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until A. Midnight on Sunday, September 23 B. Midnight on Monday, September 24 C. Noon on Tuesday, September 25 D. Noon on Thursday, September 27 - CORRECT ANSWER NOON ON THURSDAY, SEPTEMBER 27" "All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the A. Name of the seller B. Purchase price C. Date of the transaction D. Latest cancellation date - CORRECT ANSWER PURCHASE PRICE" "What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? A. $150 B. $500 C. $750 D. $1,500 - CORRECT ANSWER $500" "What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $100 B. $500 C. $1,000 D. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT ANSWER THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR REFERRALS" "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 within A. 30 days after the hearing B. 60 days after the hearing C. 90 days after the hearing D. 120 days after the hearing - CORRECT ANSWER 60 DAYS AFTER THE HEARING" "An applicant was denied a license after a hearing. When may the applicant reapply? A. 3 months B. 6 months C. 1 year D. 2 years - CORRECT ANSWER 6 MONTHS" "All of the following activities are grounds for disciplinary action against a licensee EXCEPT A. Issuing a promissory note for the home improvement B. Failing to complete work as agreed C. Misrepresenting the cost of services D. Violating building codes - CORRECT ANSWER ISSUING A PROMISSORY NOTE FOR THE HOME IMPROVEMENT" "All of the following Commission records can be inspected by the public during normal office hours EXCEPT A. Financial records of each licensee B. Meeting minutes C. Licensee applications D. Disciplinary actions - CORRECT ANSWER FINANCIAL RECORDS OF EACH LICENSEE" "Code Violation Notification: Per Section 8-505, who is responsible for notifying the Commission of a contractor's failure to correct a building code violation? A) The homeowner B) The salesperson C) The county or municipal corporation D) The contractor themselves - CORRECT ANSWER Answer: The county or municipal corporation is responsible for notifying the Commission according to Section 8-505." "Unlicensed Activity Penalty: According to Section 8-601, what is the penalty for a first conviction of acting as a contractor without a license? A) Fine not exceeding $500 B) Fine not exceeding $1,000 C) Imprisonment not exceeding 3 months D) Imprisonment not exceeding 6 months - CORRECT ANSWER Answer: The penalty for a first conviction is a fine not exceeding $1,000 according to Section 8-601." "False Documentation: Per Section 8-602, what is the maximum fine for accepting a false completion certificate? A) $1,000 B) $2,000 C) $5,000 D) $10,000 - CORRECT ANSWER Answer: The maximum fine for accepting a false completion certificate is $5,000 according to Section 8-602." "Contract Abandonment: According to Section 8-605, what is a contractor prohibited from doing regarding a home improvement contract? A) Abandoning or failing to perform the contract B) Completing the contract ahead of schedule C) Using high-quality materials D) Hiring additional labor to complete the project - CORRECT ANSWER Answer: A contractor is prohibited from abandoning or failing to perform the contract as per Section 8-605." "Debt Limitation: Per Section 8-609, what is prohibited concerning the preparation or acceptance of a mortgage for a home improvement? A) Stating a lesser monetary obligation than the consideration B) Stating an equal monetary obligation to the consideration C) Stating a greater monetary obligation than the consideration D) Stating the monetary obligation in a foreign currency - CORRECT ANSWER Answer: It is prohibited to state a greater monetary obligation than the consideration for the home improvement according to Section 8-609." "Advertising Regulations: According to Section 8-610, which of the following advertisements would NOT be considered false, deceptive, or misleading? A) An advertisement that complies with Federal Trade Commission regulations B) An advertisement that offers a service the person does not intend to perform C) An advertisement that states a price the person does not intend to honor D) An advertisement that directly contradicts the services offered - CORRECT ANSWER Answer: An advertisement that complies with Federal Trade Commission regulations would not be considered false, deceptive, or misleading according to Section 8-610." "Violation of Laws: Per Section 8-611, which of the following laws is a licensee NOT prohibited from violating? A) Building law of the State B) Safety or labor law of the State C) The Maryland Workers' Compensation Act D) The Maryland Ice Cream Flavor Act - CORRECT ANSWER Answer: A licensee is not prohibited from violating the Maryland Ice Cream Flavor Act according to Section 8-611." "Doing Business With Unlicensed Person: According to Section 8-612, can a person perform or sell a home improvement with someone who is not licensed? A) Yes B) No C) Only if the unlicensed person is a family member D) Only if the homeowner agrees - CORRECT ANSWER Answer: A person cannot perform or sell a home improvement with someone who is not licensed as per Section 8-612." "Notification of Employment: Per Section 8-613, who is required to notify the Commission of an employment or other contractual relationship between a contractor and a salesperson? A) The salesperson B) The homeowner C) The contractor D) The Commission itself - CORRECT ANSWER Answer: The contractor is required to notify the Commission of an employment or other contractual relationship with a salesperson according to Section 8-613." "Fraudulent Actions: Per Section 8-608, what is a person prohibited from committing when executing a home improvement contract? A) Fraud B) A minor mistake C) A clerical error D) A true statement - CORRECT ANSWER Answer: A person is prohibited from committing fraud when executing a home improvement contract according to Section 8-608." "Advertising Without Intent: According to Section 8-610, is it permissible to advertise a home improvement service that the person does not intend to perform? A) Yes B) No C) Only if it's a limited-time offer D) Only if it's a free service - CORRECT ANSWER Answer: It is not permissible to advertise a home improvement service that the person does not intend to perform according to Section 8-610.;" A Home Improvement Contractor is a person who offers to - CORRECT ANSWER perform repairs for a homeowner." "What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? a) $150 b) $500 c) $750 d) $1,500 - CORRECT ANSWER $500" "What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? - CORRECT ANSWER The contractor is NOT permitted to compensate the homeowner for referrals." "All of the following are exempt from licensing under the Home Improvement Law EXCEPT a - CORRECT ANSWER fence contractor." "An applicant was denied a license after a hearing. When may the applicant reapply? - CORRECT ANSWER 6 months." "What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? - CORRECT ANSWER No license is required." "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 within - CORRECT ANSWER 60 days after the hearing." "The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? - CORRECT ANSWER 10 days." "Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract? a) Columbus Day b) Veteran's Day c) Election Day d) Washington's Birthday - CORRECT ANSWER Election Day." "All door-to-door sales contracts MUST include - CORRECT ANSWER the name and address of the seller." "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? - CORRECT ANSWER $1,175." "A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until a) midnight on Sunday, September 23. b) midnight on Monday, September 24. c) noon on Tuesday, September 25. d) noon on Thursday, September 27. - CORRECT ANSWER noon on Thursday, September 27." "All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the a) name of the seller b) purchase price c) date of the transaction d) latest cancellation date - CORRECT ANSWER purchase price." When must a contractor's home improvement license be renewed? - CORRECT ANSWER By June 30th- every 2 years" "What is the initial assessment for the home improvement guaranty fund of every home improvement contractor? - CORRECT ANSWER $100" "Requirement of a home improvement contract - CORRECT ANSWER The customer is given a signed copy of the contract before work begins" "What is the maximum deposit a contractor may require to build a deck attached to a house if the total contract if for $5400 - CORRECT ANSWER $1800" "A contractor specializes in building decks. What is the most important item in his advertising? - CORRECT ANSWER His name and license number" "An applicant for or holder of a subcontractor license must have general liability insurance of not less than what amount? - CORRECT ANSWER $50,000" "What is the license application fee for a salesperson license? - CORRECT ANSWER $120" "Which person is required to obtain a Maryland home improvement license? - CORRECT ANSWER A contractor who works in Maryland but whos principal place of business is not in Maryland." "A home improvement contractor has contracted for and constructed a garbage. The roof failed to support the snow load the following winter, damaging both rood and the owner car. The contractor repaired the roof, but refuses to pay for repairs to the car. How much may the property owner recover from the home improvement guaranty fund for repairs to his car? - CORRECT ANSWER Nothing" "A successful salesperson for a single contractor wants to expand his income by representing additional contractors. How many additional contractors may he represent. - CORRECT ANSWER 1" "The Home Improvement Commission has issued a proposed order to pay a claim of $2,000 against a contractor, with a copy delivered to the contractor. The contractor is required to respond within what period of time if he wishes to appeal or contest the award. - CORRECT ANSWER 21 days" "A salesperson currently working for two contractors resigns from one of his employers to accept employment with another contractor. Who is responsible for notifying the Maryland home improvement commission of his resignation? - CORRECT ANSWER The former employer" "When may a permit for a home improvement be issued without including the license number of a license contractor? - CORRECT ANSWER When the home improvement will be performed by the property owner" "A contractor offers employment to a telephone salesperson. Which of the following must accompany the salespersons application for a license. - CORRECT ANSWER No license is required" "What is required as part of a Home Improvement contract? - CORRECT ANSWER A list and description of materials to be used on the project" "The property owner may obtain payments for loss under the Home Improvement guaranty fund for? - CORRECT ANSWER The cost of replacing substandard materials" "What is grounds for revoking a Home Improvement contractors license? - CORRECT ANSWER failing to report information concerning changes in ownership of the business" "A contractor receives a notice of hearing before the Home Improvement Commission with relation to a claim entered against him. What response is required? - CORRECT ANSWER None, no legal requirement" "Example of door to door sale? - CORRECT ANSWER A roofing contractor called to fix a leak in a property owners roof. Sells the owner a contract for a completely new roof" "Example of not a door to door sale - CORRECT ANSWER Sale of a $300 investment advisory program via credit card purchase over the internet" "A contractors representative makes a door to door sale at 10:30am, Wednesday, December 23rd. The salesperson doesn't turn in the sale contract until December 28th. When is the latest the buyer may exercise their right to cancel? - CORRECT ANSWER Midnight December 28th" "What service is not regulated under the Maryland door to door sales act? - CORRECT ANSWER Sale of insurance to a homeowner at his home" "What information or statement must be given to every prospective buyer upon initial contact and prior to soliciting a sale? - CORRECT ANSWER The trade name of the person or company represented by the person making the solicitation" "A seller fails to include a cancellation form with the contract and receipt for a door to door sale. The customer decides to cancel the sale. How must the buyer notify the seller of cancellation? - CORRECT ANSWER By and manner or means of his choice" "What is the maximum service fee permitted when a homeowner cancels a $5,500 roofing job within the five day cancellation period? - CORRECT ANSWER None" "A buyer has canceled a sale within the allowable time period. When must any goods or property traded in be returned? - CORRECT ANSWER Within 10 business days after the seller receives the cancellation notice" "A buyer has cancelled within the allowable time, and the seller has refunded the deposit. How does the seller regain possession of the merchandise? - CORRECT ANSWER The seller must recover it at his own expense within 20 days following the date cancellation" A Home Improvement Contractor is a person who offers to 1. perform repairs for a homeowner 2. construct a new home for a homeowner 3. sell supplies or equipment to a "do-it-yourself" homeowner 4. alter plumbing lines to accommodate new appliances - CORRECT ANSWER 1. perform repairs for a homeowner" "What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? 1. $150 2. $500 3. $750 4. $1,500 - CORRECT ANSWER 2. $500" "What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? 1. $100 2. $1,000 3. 10% of the contract amount 4. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT ANSWER 4. The contractor is NOT permitted to compensate the homeowner for referrals" "All of the following are exempt from licensing under the Home Improvement Law EXCEPT: 1. licensed architect 2. fence contractor 3. salesperson for a licensed plumbing contractor 4. Licensed security systems technician - CORRECT ANSWER 2. fence contractor" "An applicant was denied a license after a hearing. When may the applicant reapply? 1. 30 days 2. 60 days 3. 6 months 4. 1 year - CORRECT ANSWER 3. 6 months" "All of the following are grounds for denial of licensure EXCEPT: 1. failing to give all required application information 2. not being a Maryland resident 3. conviction of a felony 4. fraud - CORRECT ANSWER 2. not being a Maryland resident" "A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? 1. 1 month 2. 2 months 3. 3 months 4. 6 months - CORRECT ANSWER 1. 1 month" "A license that is NOT renewed will: 1. expire 2. become inactive 3. be revoked 4. be suspended - CORRECT ANSWER 1. expire" "All of the following Commission records can be inspected by the public during normal office hours EXCEPT: 1. licenses issued 2. expired, suspended, or revoked licenses 3. financial records or each licensee 4. contractors represented by each licensed salesperson - CORRECT ANSWER 3. financial records or each licensee" "All of the following are considered home improvements EXCEPT: 1. landscaping 2. repairs to a fallout shelter 3. installation of an awning 4. repairs to an HVAC system - CORRECT ANSWER 4. repairs to an HVAC system" "A local county or municipality may 1. require a person to get authorization to perform or sell a home improvement 2. establish qualifications for a home improvement business 3. regulate the quality of home improvements 4. issue home improvement license - CORRECT ANSWER 3. regulate the quality of home improvements" "The office of the Home Improvement Commission is located in 1. Baltimore 2. Annapolis 3. College Park 4. Washington, DC - CORRECT ANSWER 1. Baltimore" "The official record keeper of the Home Improvement Commission shall be the 1. Chairperson of the Commission 2. Executive Director of the Commission 3. Secretary of the Department of Labor, Licensing, and Regulation 4. Governor - CORRECT ANSWER 2. Executive Director of the Commission" "Who investigates complaints against Home Improvement Licensees? 1. Investigative staff of the Home Improvement Commission 2. Complaint staff of the Contractors' Licensing Board 3. State Attorney's staff 4. Legislative staff - CORRECT ANSWER 1. Investigative staff of the Home Improvement Commission" "All of the following activities are grounds for disciplinary action against a licensee EXCEPT: 1. Violation of labor laws 2. issuing a promissory note for the home improvement 3. failure to comply with the Maryland Workers' Compensation Act 4. disregard of safety laws - CORRECT ANSWER 2. issuing a promissory note for the home improvement" "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. 30 days 2. 60 days 3. 180 days 4. 1 year - CORRECT ANSWER 4. 1 year" "The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? 1. 3 days 2. 10 days 3. 30 days 4. 60 days - CORRECT ANSWER 2. 10 days" "Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract? 1. Columbus Day 2. Veteran's Day 3. Election Day 4. Washington's Birthday - CORRECT ANSWER 3. Election Day" "All door-to-door sales contracts MUST include: 1. the name and address of the buyer 2. the name and address of the seller 3. a promissory note 4. copies of all product brochures - CORRECT ANSWER 2. the name and address of the seller" "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? 1. $1,000 2. $1,050 3. $1,125 4. $1,175 - CORRECT ANSWER 4. $1,175" "A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract any time up until: 1. Midnight on Sunday, September 23 2. Midnight on Monday, September 24 3. Noon on Tuesday, September 25 4. Noon on Thursday, September 27 - CORRECT ANSWER 4. Noon on Thursday, September 27" "All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the: 1. name of the seller 2. purchase price 3. date of the transaction 4. Latest cancellation date - CORRECT ANSWER 2. purchase price" "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 within A. 30 days after the hearing B. 60 days after the hearing C. 90 days after the hearing D. 120 days after the hearing - CORRECT ANSWER 60 DAYS AFTER THE HEARING" "What is the maximum fine for willfully violating any provision of the Maryland Door-to-Door Sales Act? A. $500 B. $1,000 C. $2,000 D. $5,000 - CORRECT ANSWER $1,000" "What is the maximum imprisonment for willfully violating any provision of the Maryland Door-to-Door Sales Act? A. 6 months B. 1 year C. 2 years D. 5 years - CORRECT ANSWER 1 YEAR" "Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract? A. Columbus Day B. Veteran's Day C. Election Day D. Washington's Birthday - CORRECT ANSWER ELECTION DAY" "A home improvement contract must contain the approximate dates when the performance of the home improvement will begin and when it will be A. Partially completed B. Substantially completed C. Fully completed D. Inspected - CORRECT ANSWER SUBSTANTIALLY COMPLETED" "What is the maximum amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $50 B. $100 C. $200 D. The contractor is not permitted to compensate the homeowner for referrals - CORRECT ANSWER THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR REFERRALS" "A local county or municipality may A. Regulate the quality of home improvements B. Issue home improvement licenses C. Override state regulations D. None of the above - CORRECT ANSWER REGULATE THE QUALITY OF HOME IMPROVEMENTS" "The office of the Home Improvement Commission is located in A. Annapolis B. Baltimore C. Rockville D. Frederick - CORRECT ANSWER BALTIMORE" "The official recordkeeper of the Home Improvement Commission shall be the A. Secretary of the Commission B. Executive Director of the Commission C. Chairman of the Commission D. Treasurer of the Commission - CORRECT ANSWER EXECUTIVE DIRECTOR OF THE COMMISSION" "Who investigates complaints against Home Improvement licensees? A. Local Police B. Investigative staff of the Home Improvement Commission C. State Attorney's Office D. Federal Trade Commission - CORRECT ANSWER INVESTIGATIVE STAFF OF THE HOME IMPROVEMENT COMMISSION" "All of the following activities are grounds for disciplinary action against a licensee EXCEPT A. Issuing a promissory note for the home improvement B. Failing to complete work on time C. Misrepresenting the cost of materials D. Violating building codes - CORRECT ANSWER ISSUING A PROMISSORY NOTE FOR THE HOME IMPROVEMENT" "A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is A. $50 B. $100 C. $200 D. Nothing. No service fee may be collected - CORRECT ANSWER NOTHING. NO SERVICE FEE MAY BE COLLECTED" "All of the following are grounds for denial of licensure EXCEPT A. Criminal record B. Not being a Maryland resident C. Previous license revocation D. Fraudulent practices - CORRECT ANSWER NOT BEING A MARYLAND RESIDENT" "A license that is NOT renewed will A. Be suspended B. Expire C. Be revoked D. Be transferred - CORRECT ANSWER EXPIRE" "All of the following Commission records can be inspected by the public during normal office hours EXCEPT A. Financial records of each licensee B. Meeting minutes C. Licensee list D. Disciplinary actions - CORRECT ANSWER FINANCIAL RECORDS OF EACH LICENSEE" "What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? A. Salesperson License B. Contractor License C. No license is required D. Business License - CORRECT ANSWER NO LICENSE IS REQUIRED" "All of the following are exempt from licensing under the Home Improvement Law EXCEPT a A. Plumber B. Electrician C. Fence contractor D. Architect - CORRECT ANSWER FENCE CONTRACTOR" "A Home Improvement Contractor is a person who offers to A. Perform repairs for a homeowner B. Sell home improvement goods C. Provide consultation for home improvement D. All of the above - CORRECT ANSWER PERFORM REPAIRS FOR A HOMEOWNER" "All door-to-door sales contracts MUST include A. The name and address of the seller B. The buyer's social security number C. A detailed list of materials to be used D. The buyer's bank account details - CORRECT ANSWER THE NAME AND ADDRESS OF THE SELLER" "The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days D. 30 days - CORRECT ANSWER 10 DAYS" "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? A. 6 months B. 1 year C. 2 years D. 5 years - CORRECT ANSWER 1 YEAR" "Who investigates complaints against Home Improvement licensees? A. Local Police B. Investigative staff of the Home Improvement Commission C. Federal Trade Commission D. Better Business Bureau - CORRECT ANSWER INVESTIGATIVE STAFF OF THE HOME IMPROVEMENT COMMISSION" "The official recordkeeper of the Home Improvement Commission shall be the A. Secretary of the Commission B. Executive Director of the Commission C. Chairman of the Commission D. Treasurer of the Commission - CORRECT ANSWER EXECUTIVE DIRECTOR OF THE COMMISSION" "The office of the Home Improvement Commission is located in A. Annapolis B. Baltimore C. Rockville D. Frederick - CORRECT ANSWER BALTIMORE" "A local county or municipality may A. Regulate the quality of home improvements B. Issue Home Improvement licenses C. Overrule the Home Improvement Commission D. None of the above - CORRECT ANSWER REGULATE THE QUALITY OF HOME IMPROVEMENTS" "All of the following are considered home improvements EXCEPT A. Repairs to an HVAC system B. Painting a room C. Installing a new roof D. Building a deck - CORRECT ANSWER REPAIRS TO AN HVAC SYSTEM" "A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? A. 1 month B. 2 months C. 3 months D. 6 months - CORRECT ANSWER 1 MONTH" "A license that is NOT renewed will A. Be suspended B. Expire C. Be put on hold D. Be transferred to another individual - CORRECT ANSWER EXPIRE" "All of the following are grounds for denial of licensure EXCEPT A. Criminal record B. Not being a Maryland resident C. Previous license revocation D. Fraudulent application - CORRECT ANSWER NOT BEING A MARYLAND RESIDENT" "A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is A. $50 B. $100 C. $200 D. Nothing. No service fee may be collected - CORRECT ANSWER NOTHING. NO SERVICE FEE MAY BE COLLECTED" "What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? A. Salesperson license B. Contractor license C. No license is required D. Business license - CORRECT ANSWER NO LICENSE IS REQUIRED" "All of the following are exempt from licensing under the Home Improvement Law EXCEPT a A. Fence contractor B. Plumber C. Electrician D. HVAC technician - CORRECT ANSWER FENCE CONTRACTOR" "What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $50 B. $100 C. $200 D. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT ANSWER THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR REFERRALS" "A Home Improvement Contractor is a person who offers to A. Perform repairs for a homeowner B. Sell home improvement goods C. Provide consultation for home improvement D. All of the above - CORRECT ANSWER PERFORM REPAIRS FOR A HOMEOWNER" "All door-to-door sales contracts MUST include A. The name and address of the seller B. The buyer's social security number C. A detailed list of materials to be used D. The buyer's bank account details - CORRECT ANSWER THE NAME AND ADDRESS OF THE SELLER" "The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days D. 30 days - CORRECT ANSWER 10 DAYS;" "What Must Be in Writing?: According to Section 8-501, what must be in writing for a home improvement contract? A) Verbal agreement B) The contract itself C) A handshake D) A text message - CORRECT ANSWER Answer: The contract itself must be in writing according to Section 8-501." "Who Can Sign a Contract?: Per Section 8-501, who needs to sign the home improvement contract? A) Only the contractor B) Only the homeowner C) Both the contractor and homeowner D) The salesperson - CORRECT ANSWER Answer: Both the contractor and homeowner need to sign the home improvement contract as per Section 8-501." "Salesperson Compensation: According to Section 8-502, from whom can a salesperson accept compensation? A) Any contractor B) The contractor they represent C) The homeowner D) Any third party - CORRECT ANSWER Answer: A salesperson can accept compensation only from the contractor they represent according to Section 8-502." "Inducement Limitations: Per Section 8-503, what is the maximum value of a gift a salesperson can offer to a prospective customer? A) $10 B) $25 C) $50 D) $100 - CORRECT ANSWER Answer: The maximum value of a gift a salesperson can offer is $25 according to Section 8-503." "Permit Requirements: According to Section 8-504, what must a permit for a home improvement include? A) The homeowner's social security number B) The license number of a licensed contractor C) The salesperson's favorite brand of tools D) The estimated market value of the home - CORRECT ANSWER Answer: A permit must include the license number of a licensed contractor as per Section 8-504." "Business Name: According to Section 8-614, under what name can a person act as a contractor or sell a home improvement? A) Any name they choose B) The name under which they are licensed C) Their nickname D) Their social media handle - CORRECT ANSWER Answer: A person can act as a contractor or sell a home improvement only under the name under which they are licensed as per Section 8-614.;" "Advertising License Number: Per Section 8-615, what must be stated in an advertisement if a person is licensed under Title 8? A) Their social security number B) Their license number C) Their home address D) Their phone number - CORRECT ANSWER Answer: The advertisement must state their license number if a person is licensed under Title 8 according to Section 8-615." "Failure to Comply: According to Section 8-616, what is the penalty for failing to comply with a lawful order or requirement of the Commission? A) No penalty B) Civil penalty not exceeding $5,000 C) Imprisonment not exceeding 6 months D) Revocation of license - CORRECT ANSWER Answer: The section does not specify a penalty for failing to comply with a lawful order or requirement of the Commission according to Section 8-616." "Payment Before Contract: Per Section 8-617, what is prohibited concerning payment for a home improvement? A) Receiving any payment before the contract is signed B) Receiving a deposit of more than one-third of the contract price C) Both A and B D) Neither A nor B - CORRECT ANSWER Answer: Both receiving any payment before the contract is signed and receiving a deposit of more than one-third of the contract price are prohibited according to Section 8-617." "Civil Penalties: According to Section 8-620, what is the maximum civil penalty that the Commission may impose for a violation? A) $1,000 B) $2,500 C) $5,000 D) $10,000 - CORRECT ANSWER Answer: The maximum civil penalty that the Commission may impose for a violation is $5,000 according to Section 8-620." "General Criminal Penalty: Per Section 8-623, what is the maximum fine for a misdemeanor under this title if no greater penalty is provided? A) $500 B) $1,000 C) $2,000 D) $5,000 - CORRECT ANSWER Answer: The maximum fine for a misdemeanor under this title is $1,000 if no greater penalty is provided according to Section 8-623." "Salesperson Representation: According to Section 8-502, can a salesperson represent more than one contractor concurrently? A) Yes B) No C) Only if the contractors are related D) Only if the homeowner agrees - CORRECT ANSWER Answer: A salesperson cannot represent more than one contractor concurrently according to Section 8-502." "Inducements to Owners: Per Section 8-503, can a salesperson offer a cash loan as an inducement to make a home improvement contract? A) Yes B) No C) Only if it's less than $100 D) Only if it's more than $100 - CORRECT ANSWER Answer: A salesperson cannot offer a cash loan as an inducement to make a home improvement contract according to Section 8-503." "Misrepresentation: According to Section 8-607, what is a person prohibited from making when obtaining a home improvement contract? A) A substantial misrepresentation B) A minor misrepresentation C) A true statement D) A suggestion - CORRECT ANSWER Answer: A person is prohibited from making a substantial misrepresentation when obtaining a home improvement contract according to Section 8-607." "A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is - CORRECT ANSWER nothing. No service fee may be collected." "All of the following are grounds for denial of licensure EXCEPT - CORRECT ANSWER not being a Maryland resident." "A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? - CORRECT ANSWER 1 month." "A license that is NOT renewed will - CORRECT ANSWER expire." "All of the following Commission records can be inspected by the public during normal office hours EXCEPT - CORRECT ANSWER financial records of each licensee." "All of the following are considered home improvements EXCEPT - CORRECT ANSWER repairs to an HVAC system." "A local county or municipality may - CORRECT ANSWER regulate the quality of home improvements." "The office of the Home Improvement Commission is located in - CORRECT ANSWER Baltimore." "The official recordkeeper of the Home Improvement Commission shall be the - CORRECT ANSWER Executive Director of the Commission." "Who investigates complaints against Home Improvement licensees? - CORRECT ANSWER Investigative staff of the Home Improvement Commission." "All of the following activities are grounds for disciplinary action against a licensee EXCEPT - CORRECT ANSWER issuing a promissory note for the home improvement." "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? - CORRECT ANSWER 1 year." "What is not required in an advertisement offering a specific home improvement at a sale of temporarily reduced price? - CORRECT ANSWER A guaranty or warranty" "A salesperson has obtained a signed contract and a deposit for a building a deck, subject to acceptance by the contractor. The contractor elects not to accept the contract. When must he return the deposit to the owner. - CORRECT ANSWER Within 10 working days of the date of the contract" "What requires the contractor to have a home improvement license. - CORRECT ANSWER Installation of new kitchen cabinets" "Home Improvement contractor John Jones and company is changing the name of his firm to John Jones and son. When must he notify the Home Improvement Commission? - CORRECT ANSWER Within 10 days of the change" "A carpenter is regularly employed by a licensed Home Improvement contractor. He builds a deck for his neighbor for $2,000. The contractor finds out about the project, fires the carpenter, and reports the incident to the Home Improvement commission. The commission may? - CORRECT ANSWER Charge the carpenter with violation of the Home Improvement Act" "An owner and a contractor prepare a false certificate of completion for presentation to the contractors bank to obtain additional credit. What is the maximum penalty upon conviction? - CORRECT ANSWER A $5,000 fine and imprisonment up to 3 years for the contractor and the owner" "An individual seeking a Home Improvement contractors license was denied by the Home Improvement commission due to failure to provide the required financial information. Following a hearing the denial was reaffirmed. How longs must he wait before he may reapply for a license. - CORRECT ANSWER 6 months" "A woman wishes to work as a salesperson in the Hone Improvement field. What is not required? - CORRECT ANSWER Provide proof of general liability insurance" "How must a Home Improvement contractor display his license number on all work vehicles. - CORRECT ANSWER The letters MHIC# and his license number in 3" high letters on both sides of the vehicle" "The name used in an application for a salesperson's license must be? - CORRECT ANSWER The legal name of the applicant" "A home Improvement contractor is advertising a sale on hot tubs. His ads include only the basic price of the tub. What is required in his ad? - CORRECT ANSWER A statement that accessories shown or which may be essential to operation are not included in the advertised price." "A claim against the Home Improvement Guaranty Fund must be brought to the commission within what period of time? - CORRECT ANSWER Within 3 years of discovering the loss or damage" "What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? 1. Salesperson 2. Contractor 3. Subcontractor 4. No license is required - CORRECT ANSWER 4. No license is required" "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 within: 1. 10 days after the hearing 2. 30 days after the hearing 3. 60 days after the hearing 4. 180 days after the hearing - CORRECT ANSWER 3. 60 days after the hearing" "A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is: 1. Nothing. No service fee may be collected 2. $25 3. $50 4. $100 - CORRECT ANSWER 1. Nothing. No service fee may be collected"