NYC HOME IMPROVEMENT 2026 TEST PAPER QUESTIONS
AND ANSWERS MARKED A+
✔✔Oral Notification Requirement - ✔✔Contractor must inform consumer of cancellation
rights.
✔✔Contractor Compliance - ✔✔Consumer can cancel if contractor fails to notify.
✔✔Contractor's Obligations - ✔✔Must refund payments within 10 business days.
✔✔Security Interest Termination - ✔✔Contractor must cancel any security interest.
✔✔Advertising Rules - ✔✔Must include contractor license number in ads.
✔✔Deceptive Advertising - ✔✔Prices and descriptions must not mislead consumers.
✔✔Exaggeration in Headings - ✔✔Headings must avoid exaggeration or deception.
✔✔Savings Claims - ✔✔Cannot imply savings as the selling price.
✔✔Accurate Descriptions - ✔✔Ads must accurately portray size and quality.
✔✔Material Descriptions - ✔✔Descriptions must be truthful and precise.
✔✔Price Terms Accuracy - ✔✔Must accurately reflect offered price or credit.
✔✔Installation Costs - ✔✔Ads must state if installation is extra.
✔✔Misleading Statements - ✔✔Cannot claim factory-direct unless true.
✔✔Lifetime Guarantees - ✔✔Warranties must reflect normal item lifespan.
✔✔Defective Materials - ✔✔Materials with flaws affecting performance or safety.
✔✔Prime Contractor - ✔✔Main contractor responsible for project permits and
compliance.
✔✔Permits - ✔✔Official approvals required for construction activities.
✔✔New York City Department of Buildings (DOB) - ✔✔Agency issuing permits for
construction in NYC.
✔✔Subcontractor - ✔✔Independent contractor hired for specific project tasks.
, ✔✔Employee - ✔✔Individual working under employer's supervision for wages.
✔✔Net Profit - ✔✔Profit remaining after deducting all job expenses.
✔✔DCWP License - ✔✔Required certification for subcontractors in NYC home
improvement.
✔✔Workers' Compensation Insurance - ✔✔Insurance covering employee injuries on the
job.
✔✔IRS Reporting - ✔✔Mandatory reporting of employee wages to the IRS.
✔✔Immigration Compliance - ✔✔Ensuring employees have legal work authorization in
the U.S.
✔✔Bond - ✔✔Financial guarantee securing contractor's obligations.
✔✔Home Improvement Trust Fund - ✔✔Fund for supporting home improvement
projects in NYC.
✔✔Suspended Scaffold - ✔✔Platform for workers painting multi-story buildings.
✔✔Amended Certificate of Occupancy - ✔✔Document reflecting changes to a building's
use or structure.
✔✔Licensed Electrician - ✔✔Qualified professional for electrical installations and
repairs.
✔✔Sales Tax Collection - ✔✔Contractors must charge tax on repair services.
✔✔Capital Improvement - ✔✔Significant upgrades enhancing property value or utility.
✔✔Zoning Law Compliance - ✔✔Adherence to local regulations regarding land use.
✔✔Department of Transportation (DOT) - ✔✔Agency managing permits for street-
related construction activities.
✔✔Sidewalk Work Permit - ✔✔Required authorization for construction on public
sidewalks.
✔✔Class One Self Hauler Registration - ✔✔Registration for businesses transporting
construction waste.
AND ANSWERS MARKED A+
✔✔Oral Notification Requirement - ✔✔Contractor must inform consumer of cancellation
rights.
✔✔Contractor Compliance - ✔✔Consumer can cancel if contractor fails to notify.
✔✔Contractor's Obligations - ✔✔Must refund payments within 10 business days.
✔✔Security Interest Termination - ✔✔Contractor must cancel any security interest.
✔✔Advertising Rules - ✔✔Must include contractor license number in ads.
✔✔Deceptive Advertising - ✔✔Prices and descriptions must not mislead consumers.
✔✔Exaggeration in Headings - ✔✔Headings must avoid exaggeration or deception.
✔✔Savings Claims - ✔✔Cannot imply savings as the selling price.
✔✔Accurate Descriptions - ✔✔Ads must accurately portray size and quality.
✔✔Material Descriptions - ✔✔Descriptions must be truthful and precise.
✔✔Price Terms Accuracy - ✔✔Must accurately reflect offered price or credit.
✔✔Installation Costs - ✔✔Ads must state if installation is extra.
✔✔Misleading Statements - ✔✔Cannot claim factory-direct unless true.
✔✔Lifetime Guarantees - ✔✔Warranties must reflect normal item lifespan.
✔✔Defective Materials - ✔✔Materials with flaws affecting performance or safety.
✔✔Prime Contractor - ✔✔Main contractor responsible for project permits and
compliance.
✔✔Permits - ✔✔Official approvals required for construction activities.
✔✔New York City Department of Buildings (DOB) - ✔✔Agency issuing permits for
construction in NYC.
✔✔Subcontractor - ✔✔Independent contractor hired for specific project tasks.
, ✔✔Employee - ✔✔Individual working under employer's supervision for wages.
✔✔Net Profit - ✔✔Profit remaining after deducting all job expenses.
✔✔DCWP License - ✔✔Required certification for subcontractors in NYC home
improvement.
✔✔Workers' Compensation Insurance - ✔✔Insurance covering employee injuries on the
job.
✔✔IRS Reporting - ✔✔Mandatory reporting of employee wages to the IRS.
✔✔Immigration Compliance - ✔✔Ensuring employees have legal work authorization in
the U.S.
✔✔Bond - ✔✔Financial guarantee securing contractor's obligations.
✔✔Home Improvement Trust Fund - ✔✔Fund for supporting home improvement
projects in NYC.
✔✔Suspended Scaffold - ✔✔Platform for workers painting multi-story buildings.
✔✔Amended Certificate of Occupancy - ✔✔Document reflecting changes to a building's
use or structure.
✔✔Licensed Electrician - ✔✔Qualified professional for electrical installations and
repairs.
✔✔Sales Tax Collection - ✔✔Contractors must charge tax on repair services.
✔✔Capital Improvement - ✔✔Significant upgrades enhancing property value or utility.
✔✔Zoning Law Compliance - ✔✔Adherence to local regulations regarding land use.
✔✔Department of Transportation (DOT) - ✔✔Agency managing permits for street-
related construction activities.
✔✔Sidewalk Work Permit - ✔✔Required authorization for construction on public
sidewalks.
✔✔Class One Self Hauler Registration - ✔✔Registration for businesses transporting
construction waste.
