MARYLAND HOME IMPROVEMENT STUDY GUIDE
2025/2026 QUESTIONS AND ANSWERS GRADED A++
✔✔What is an additional penalty for opening at home improvement business without a
license? - ✔✔A person may be prosecuted civilly and face fines of up to $100 per day
for engaging in on license activity or aiding and abetting the operation of an license
person or business.
✔✔In the event of a home improvement business operating without a license what is
the final thing the DCA will do.? - ✔✔The Department of consumer affairs and padlock
closedown and confiscate take the tools and trucks used in the connection with
unlicensed home-improvement work
✔✔In what form is the home improvement contract be? - ✔✔Every home improvement
contract must be in writing and signed by everyone involved. You must give the
consumer a complete legible copy of the contract at the time of signing and before any
work is done.
✔✔Contracts must be in plain English unless? - ✔✔Another language was used in any
oral spoken sales presentation in which the case contract needs to be in that language
as well as English
✔✔If a consumer wants more work done beyond what's in the original contract what
should a contractor do? - ✔✔The contractor should provide a written amendment to the
contract which the consumer and the contractor must both sign.
✔✔Must a contractor or sales person provide the consumer with a separate notice of
cancellation - ✔✔Yes at the time the consumer signs the contract.
✔✔The contractor or sales person must attach to the signed contract two copies of a
separate completed form titled? - ✔✔Notice of cancellation the words in the form must
be in both eyes and the font size must be at least 10 Point.
✔✔Must a contractor or a sales person Inform the consumer or orally of the consumers
right to cancel? - ✔✔Yes a contractor or sales person must tell the consumer about the
right to cancel a home improvement contract within three business days from the
contract date.
✔✔What if a contractor or sales person fails To comply with the provisions requiring oral
and written notice of the consumers right to cancel? - ✔✔Until the contractor or sales
person complies with the requirements for the oral and written notice of the consumers
right to cancel the consumer may cancel the contract.
, ✔✔What should a contractor do if A consumer wants to cancel the contract? - ✔✔Within
10 business days refund all payments made under the contract, cancel and return
money paid in connection with the contract. terminate any security interest. notify the
consumer as to whether the contractor intends to repossess or abandon any shipped
delivered materials.
✔✔Do sales persons need to notify DCA about their employers - ✔✔Yes sales persons
must submit to DCA written confirmation of their employment from their employer or
employers within 48 hours of appointment.
✔✔Who must obtain permits? - ✔✔It is the duty and obligation of the prime contractor to
secure all necessary permits,
licenses, and Certificates of Occupancy or special exceptions in accordance with
applicable state or local building laws. A contractor may not shift responsibility to the
consumer.
✔✔Where does a contractor go to secure a permit for an addition or alteration to a
house? - ✔✔A contractor secures all necessary permits from the New York City
Department of Buildings (DOB). A contractor must make sure that any addition or
alterations meet building code standards and do not violate local zoning laws. Finally,
although a
contractor may pick up permits at DOB, a registered architect or licensed engineer must
file alterations to building plans with DOB.
✔✔What is the difference between a subcontractor and an employee? - ✔✔A
subcontractor is an individual in business for himself or a firm in business for itself
contracting to do part of a home improvement contract with a prime contractor. An
employee works for wages and is under the employer's (prime or subcontractor) direct
supervision and control.
✔✔What is net profit of a job - ✔✔Net profit is the final profit of any job after expenses.
✔✔Must a subcontractor be licensed by DCA - ✔✔Yes. A subcontractor as opposed to
an employee of a general contractor, must have a DCA license to perform home
improvement work in New York City
✔✔What are some of your Obligations with regard to employees? - ✔✔you must cover
employees with workers' Compensation and disability insurance. Must report employee
wages to the internal Revenue Service, and you must withhold taxes.
✔✔What is an additional obligation with regard to employees? - ✔✔You must comply
with the Federal Immigration laws, which require employers to ensure that employees
have legal authority to work in the united States.
2025/2026 QUESTIONS AND ANSWERS GRADED A++
✔✔What is an additional penalty for opening at home improvement business without a
license? - ✔✔A person may be prosecuted civilly and face fines of up to $100 per day
for engaging in on license activity or aiding and abetting the operation of an license
person or business.
✔✔In the event of a home improvement business operating without a license what is
the final thing the DCA will do.? - ✔✔The Department of consumer affairs and padlock
closedown and confiscate take the tools and trucks used in the connection with
unlicensed home-improvement work
✔✔In what form is the home improvement contract be? - ✔✔Every home improvement
contract must be in writing and signed by everyone involved. You must give the
consumer a complete legible copy of the contract at the time of signing and before any
work is done.
✔✔Contracts must be in plain English unless? - ✔✔Another language was used in any
oral spoken sales presentation in which the case contract needs to be in that language
as well as English
✔✔If a consumer wants more work done beyond what's in the original contract what
should a contractor do? - ✔✔The contractor should provide a written amendment to the
contract which the consumer and the contractor must both sign.
✔✔Must a contractor or sales person provide the consumer with a separate notice of
cancellation - ✔✔Yes at the time the consumer signs the contract.
✔✔The contractor or sales person must attach to the signed contract two copies of a
separate completed form titled? - ✔✔Notice of cancellation the words in the form must
be in both eyes and the font size must be at least 10 Point.
✔✔Must a contractor or a sales person Inform the consumer or orally of the consumers
right to cancel? - ✔✔Yes a contractor or sales person must tell the consumer about the
right to cancel a home improvement contract within three business days from the
contract date.
✔✔What if a contractor or sales person fails To comply with the provisions requiring oral
and written notice of the consumers right to cancel? - ✔✔Until the contractor or sales
person complies with the requirements for the oral and written notice of the consumers
right to cancel the consumer may cancel the contract.
, ✔✔What should a contractor do if A consumer wants to cancel the contract? - ✔✔Within
10 business days refund all payments made under the contract, cancel and return
money paid in connection with the contract. terminate any security interest. notify the
consumer as to whether the contractor intends to repossess or abandon any shipped
delivered materials.
✔✔Do sales persons need to notify DCA about their employers - ✔✔Yes sales persons
must submit to DCA written confirmation of their employment from their employer or
employers within 48 hours of appointment.
✔✔Who must obtain permits? - ✔✔It is the duty and obligation of the prime contractor to
secure all necessary permits,
licenses, and Certificates of Occupancy or special exceptions in accordance with
applicable state or local building laws. A contractor may not shift responsibility to the
consumer.
✔✔Where does a contractor go to secure a permit for an addition or alteration to a
house? - ✔✔A contractor secures all necessary permits from the New York City
Department of Buildings (DOB). A contractor must make sure that any addition or
alterations meet building code standards and do not violate local zoning laws. Finally,
although a
contractor may pick up permits at DOB, a registered architect or licensed engineer must
file alterations to building plans with DOB.
✔✔What is the difference between a subcontractor and an employee? - ✔✔A
subcontractor is an individual in business for himself or a firm in business for itself
contracting to do part of a home improvement contract with a prime contractor. An
employee works for wages and is under the employer's (prime or subcontractor) direct
supervision and control.
✔✔What is net profit of a job - ✔✔Net profit is the final profit of any job after expenses.
✔✔Must a subcontractor be licensed by DCA - ✔✔Yes. A subcontractor as opposed to
an employee of a general contractor, must have a DCA license to perform home
improvement work in New York City
✔✔What are some of your Obligations with regard to employees? - ✔✔you must cover
employees with workers' Compensation and disability insurance. Must report employee
wages to the internal Revenue Service, and you must withhold taxes.
✔✔What is an additional obligation with regard to employees? - ✔✔You must comply
with the Federal Immigration laws, which require employers to ensure that employees
have legal authority to work in the united States.
