When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - Answer -B. After the contract is
prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project - Answer -B. Contractor's license number
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and
texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - Answer -B. Home solicitation contract which involves fencing, burglar
alarm, carpentry and texture coating - only home solicited contracts can be cancelled
which contain "permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the
___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - Answer -C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the
contractor return the down payment?
A. April 23
B. March 30
C. April 1
D. April 20 - Answer -B. March 30 -10 Days
A notice canceling a home solicitation contract becomes effective:
A. When the written notice is deposited in the mail
B. When signed by the owner
C. The day the owner cancels by telephone
D. When the contractor receives it - Answer -A. When the written notice is deposited in
the mail
, An "emergency" job has been contracted for between the owner and a contractor. The
materials have been purchased. If the owner decides to cancel, who is responsible for
the materials?
A. The owner
B. The contractor
C. The supplier
D. No one - Answer -A. The owner - During emergencies, the cancelation period is
waived
Which of the following is NOT true concerning a joint-control addendum to a contract?
A. It prevents the contractor from being paid more than the value of the work completed
B. It safeguards the consumer's property from liens by requiring contractor's to supply
lien releases
C. It analyzes the contract, plans, breakdown of costs and prepares an account from
which funds will be disbursed
D. It is controlled by the Contractor's State License Board - Answer -D. It is controlled
by the Contractor's State License Board
Who must sign a joint-control addendum to a home improvement contract?
A. Contractor's only
B. Owner and contractor
C. Owner, contractor and Notary Public
D. Owner,contractor and joint control officer - Answer -D. Owner,contractor and joint
control officer
When a joint-control addendum is issued, which of the following does NOT have to be
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a
statement that the owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or
installed - Answer -B. The name and home address of all the personnel listed on the
license. Know that A, C and D are required. Only the contractor's name, address and
license number are required.
When a home improvement contract is signed, the contractor must substantially begin
work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20 - Answer -D. 20
Which is true concerning home improvement sales persons?