MHIC FINAL EXAM
1. The Home improvement commission received a claim for reimbursementof $2000 in
alleged actual losses suffered as a result of a Home improvementcontract with a contractor. A
copy of the claim was sent to the contractor. Howlong does the contractor have to respond to
the claim notice?
A. 10 days.
B. 21 days.
C. 30 days.
D. 60 days.: A. 10 days.
2. A sales person currently working for two contractors, resigned from onejob to pursue
employment with another contractor. Who is responsible for notifying the Maryland Home
improvement commission of their resignation
A. no one. The commission does not need to be not.
B. the former employer/contractor.
C. The new employer /contractor.
D. the sales person.: B. the former employer/contractor.
3. A contractor is advertising a specific Home improvement job at a discount or a temporarily
reduced price. Which of the following are they NOT requiredto include in the advertisement?
A. a clearly stated time limit.
B. A guarantee or warranty.
C. The name and license number of the contractor.
D. the normal or customary selling price.: B. a guarantee or warranty.
4. A sales person selling deck installation has secured a signed contract which stipulates it is
subject to the contractors approval or disapproval alongwith a deposit for 1/3 of the purchase
price if the contractor chooses NOT toapprove the contract. When should they return the deposit
to the homeowner?
A. immediately.
B. within three working days of the date of the contract.
C. Within 10 working days of the date of the contract.
D. within three days of the date of disapproval and no later than 13 working days from the
date of the contract.: D. within three days of the date of disapprovaland no later than 13 working
days from the date of the contract.
5. Which of the following activities required the contractor to have a Homeimprovement
license
A. a new hot tub installation on a 54 year-old man Home deck.
B. installation of a new water heater by a plumbing contractor.
,C. Rewiring of an existing homes electrical system by an electrical contractor.
D. building a new deck in an assisted-living property that is located in a newdevelopment.: A.
a new hot tub installation on a 54 year-old man Home deck
6. A Home improvement contractor peptic contractor is changing the name of their firm to
John Jones and sons. When must they notify the Hopi probatecommission of this change?
A. at the time of renewal.
B. Within 10 days of the change.
C. Within two weeks of the change.
d. Within 30 days of the change.: B. within 10 days of the change.
7. Mr. Smith is a carpenter who is regularly employed by a licensed Home improvement
contractor. He decides to build a deck on his own home for a total cost of 2000. His employer
finds out about the project and reports the incident to the Home improvement commission the
commission may.
A. Award the carpenter damages, and payback for the loss of employment.
B. charge the carpenter with violations of the Home improvement act
C. Fine the carpenter 6000 for contracting without a license.
D. none of the above.: D. None of the above
8. A homeowner and a contractor prepare a false certificate of a completionpresent to the
contractors bank to obtain additional credit if convicted what is the maximum penalty for this
violation of the Home improvement act.
A. a $5000 fine and three years of imprisonment for the contractor.
B. a $3000 fine and five years of imprisonment for the owner.
C. $1000 fine and six months of imprisonment for the contractor and theowner.
D. Recall of the loan agreement and disbursed funds +10% interest.: A. a $5000fine and three
years of imprisonment for the contractor.
9. AN INDIVIDUAL IS SEEKING A HOME IMPROVEMENT CONTRACTORS
LICENSE. THE MARYLAND HOME IMPROVEMENT COMMISSION MHIC DE- NIED
THEIR APPLICATION SINCE THEY FAILED TO PROVIDE THE REQUIRED
FINANCIAL INFORMATION. FOLLOWING A HEARING OF THE DENIAL WAS
REFORMED. HOW LONG MUST THE INDIVIDUAL WAIT BEFORE THEY CAN
REAPPLY FOR A LICENSE.
A. 30 days.
B. three months.
C. Six months.
D. one year.: C. Six months.
10. A woman whose children have grown wishes to work as a sales person in the Home
improvement industry. Which of the following is she not required todo
, A. Pass an examination required by the Home improvement commission
B. provide a complete description of the salesperson's duty.
C. Provided proof of general liability insurance.
D. submit a signed notice of employment or a contract with a licensed contrac-tor.: C. Provide
proof of general liability insurance.
11. Of the following who is required to be licensed by the Maryland HomeImprovement
Commission?
A. A vendor providing home improvement supplies and performing theirinstallation.
B. An architect providing designs to a home improvement contracting busi-ness.
C. The accountant of a home improvement contracting business.
D. A successful telephone solicitor for a home improvement contractingbusiness.
Points
: A. A vendor providing home improvement supplies and performing theirinstallation.
12. A contractor obtain their Home improvement contractors license in Decem-ber 1997 by
what date must they renew their Home improvement license?
A. By June 30, 1999.
B. By November 30, 1999.
C. By December 1, 1999.
D. By December 31, 1997: C. By December 1, 1999
13. A contractor is hired to build a deck in a house for a total contract price of
$9400. What is the maximum deposit the contractor may require at the time ofsigning?
A. $3133
B. $2820
C. $3333.
D.$ 1800.: A. $3133.
14. Which of the following is a Home improvement?
A. selling exterior siding to a homeowner who will install it themselves.
B. construction, a new two family dwelling building
C. Installing a fence in a single-family home
D. renovating the hallways of a condominium building.: C. Installing a fence ina single-family
Home
15. What MUST a building permit have?
A. the dates in which the Home improvement will begin and be completed
B. the Maryland Home improvement commission executive directors name
C. a licensed contractors license number
D. the architect blueprint reading: C. a licensed contractors license number.
1. The Home improvement commission received a claim for reimbursementof $2000 in
alleged actual losses suffered as a result of a Home improvementcontract with a contractor. A
copy of the claim was sent to the contractor. Howlong does the contractor have to respond to
the claim notice?
A. 10 days.
B. 21 days.
C. 30 days.
D. 60 days.: A. 10 days.
2. A sales person currently working for two contractors, resigned from onejob to pursue
employment with another contractor. Who is responsible for notifying the Maryland Home
improvement commission of their resignation
A. no one. The commission does not need to be not.
B. the former employer/contractor.
C. The new employer /contractor.
D. the sales person.: B. the former employer/contractor.
3. A contractor is advertising a specific Home improvement job at a discount or a temporarily
reduced price. Which of the following are they NOT requiredto include in the advertisement?
A. a clearly stated time limit.
B. A guarantee or warranty.
C. The name and license number of the contractor.
D. the normal or customary selling price.: B. a guarantee or warranty.
4. A sales person selling deck installation has secured a signed contract which stipulates it is
subject to the contractors approval or disapproval alongwith a deposit for 1/3 of the purchase
price if the contractor chooses NOT toapprove the contract. When should they return the deposit
to the homeowner?
A. immediately.
B. within three working days of the date of the contract.
C. Within 10 working days of the date of the contract.
D. within three days of the date of disapproval and no later than 13 working days from the
date of the contract.: D. within three days of the date of disapprovaland no later than 13 working
days from the date of the contract.
5. Which of the following activities required the contractor to have a Homeimprovement
license
A. a new hot tub installation on a 54 year-old man Home deck.
B. installation of a new water heater by a plumbing contractor.
,C. Rewiring of an existing homes electrical system by an electrical contractor.
D. building a new deck in an assisted-living property that is located in a newdevelopment.: A.
a new hot tub installation on a 54 year-old man Home deck
6. A Home improvement contractor peptic contractor is changing the name of their firm to
John Jones and sons. When must they notify the Hopi probatecommission of this change?
A. at the time of renewal.
B. Within 10 days of the change.
C. Within two weeks of the change.
d. Within 30 days of the change.: B. within 10 days of the change.
7. Mr. Smith is a carpenter who is regularly employed by a licensed Home improvement
contractor. He decides to build a deck on his own home for a total cost of 2000. His employer
finds out about the project and reports the incident to the Home improvement commission the
commission may.
A. Award the carpenter damages, and payback for the loss of employment.
B. charge the carpenter with violations of the Home improvement act
C. Fine the carpenter 6000 for contracting without a license.
D. none of the above.: D. None of the above
8. A homeowner and a contractor prepare a false certificate of a completionpresent to the
contractors bank to obtain additional credit if convicted what is the maximum penalty for this
violation of the Home improvement act.
A. a $5000 fine and three years of imprisonment for the contractor.
B. a $3000 fine and five years of imprisonment for the owner.
C. $1000 fine and six months of imprisonment for the contractor and theowner.
D. Recall of the loan agreement and disbursed funds +10% interest.: A. a $5000fine and three
years of imprisonment for the contractor.
9. AN INDIVIDUAL IS SEEKING A HOME IMPROVEMENT CONTRACTORS
LICENSE. THE MARYLAND HOME IMPROVEMENT COMMISSION MHIC DE- NIED
THEIR APPLICATION SINCE THEY FAILED TO PROVIDE THE REQUIRED
FINANCIAL INFORMATION. FOLLOWING A HEARING OF THE DENIAL WAS
REFORMED. HOW LONG MUST THE INDIVIDUAL WAIT BEFORE THEY CAN
REAPPLY FOR A LICENSE.
A. 30 days.
B. three months.
C. Six months.
D. one year.: C. Six months.
10. A woman whose children have grown wishes to work as a sales person in the Home
improvement industry. Which of the following is she not required todo
, A. Pass an examination required by the Home improvement commission
B. provide a complete description of the salesperson's duty.
C. Provided proof of general liability insurance.
D. submit a signed notice of employment or a contract with a licensed contrac-tor.: C. Provide
proof of general liability insurance.
11. Of the following who is required to be licensed by the Maryland HomeImprovement
Commission?
A. A vendor providing home improvement supplies and performing theirinstallation.
B. An architect providing designs to a home improvement contracting busi-ness.
C. The accountant of a home improvement contracting business.
D. A successful telephone solicitor for a home improvement contractingbusiness.
Points
: A. A vendor providing home improvement supplies and performing theirinstallation.
12. A contractor obtain their Home improvement contractors license in Decem-ber 1997 by
what date must they renew their Home improvement license?
A. By June 30, 1999.
B. By November 30, 1999.
C. By December 1, 1999.
D. By December 31, 1997: C. By December 1, 1999
13. A contractor is hired to build a deck in a house for a total contract price of
$9400. What is the maximum deposit the contractor may require at the time ofsigning?
A. $3133
B. $2820
C. $3333.
D.$ 1800.: A. $3133.
14. Which of the following is a Home improvement?
A. selling exterior siding to a homeowner who will install it themselves.
B. construction, a new two family dwelling building
C. Installing a fence in a single-family home
D. renovating the hallways of a condominium building.: C. Installing a fence ina single-family
Home
15. What MUST a building permit have?
A. the dates in which the Home improvement will begin and be completed
B. the Maryland Home improvement commission executive directors name
C. a licensed contractors license number
D. the architect blueprint reading: C. a licensed contractors license number.
