Ohio (OH) 767 Home Improvement Contractor
Practice Exam (2 VERSIONS) Comprehensive
Practice Questions with Correct Answers and
Detailed Explanations
SECTION 1: ADMINISTRATION & REGULATORY REQUIREMENTS (Questions 1-35)
Q1. In Ohio, a Home Improvement Contractor license is required for projects
exceeding what minimum total contract value?
A) $500
B) $1,000
C) $5,000
D) $10,000
Correct Answer: B. $1,000
Per Ohio Administrative Code 1301:11, a Home Improvement Contractor license is
required for any home improvement work where the total contract price, including
both labor and materials, exceeds $1,000. This threshold applies to all residential
remodeling and repair projects .
Q2. Which Ohio state agency is responsible for regulating Home Improvement
Contractors and administering the licensing program?
A) Ohio Department of Commerce
B) Ohio Attorney General's Office
C) Ohio Construction Industry Licensing Board (OCILB)
D) Ohio Home Builders Association
Correct Answer: C. Ohio Construction Industry Licensing Board (OCILB)
,The Ohio Construction Industry Licensing Board (OCILB) operates under the
Department of Commerce and is the regulatory authority responsible for licensing
and overseeing Home Improvement Contractors throughout the state of Ohio .
Q3. A valid Home Improvement Contractor license in Ohio must be renewed how
frequently?
A) Every 1 year
B) Every 2 years
C) Every 3 years
D) Every 5 years
Correct Answer: A. Every 1 year
Ohio HIC licenses expire annually, meaning they must be renewed each year by
the specified expiration date. Failure to renew on time may result in a lapse of
licensure and potential penalties for continuing to operate .
Q4. What is the minimum general liability insurance coverage required for an
Ohio Home Improvement Contractor?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
Correct Answer: B. $250,000
Ohio requires licensed Home Improvement Contractors to maintain general
liability insurance with a minimum coverage of at least $250,000 per occurrence
to protect both consumers and contractors from potential property damage or
injury claims arising from work performed .
Q5. Under Ohio's Home Improvement Sales Act, what is the legal requirement
for all contracts exceeding $1,000?
,A) They must be verbally agreed upon
B) They must be in writing and signed by both parties
C) They must be notarized by a public notary
D) They must be filed with the county recorder
Correct Answer: B. They must be in writing and signed by both parties
Ohio Revised Code 4722.02 mandates that all home improvement contracts with a
total value exceeding $1,000 must be documented in writing, dated, and signed by
both the property owner and the contractor to ensure legal enforceability and
consumer protection .
Q6. The "Right of Rescission" for a home improvement contract in Ohio allows
the homeowner to cancel the contract within how many business days without
penalty?
A) 1 business day
B) 3 business days
C) 5 business days
D) 7 business days
Correct Answer: B. 3 business days
Ohio law grants homeowners a 3-business-day right of rescission for home
improvement contracts, allowing them to cancel the agreement without penalty
within this cooling-off period. This is designed to protect consumers from high-
pressure sales tactics .
Q7. Under the Ohio Consumer Sales Practices Act (CSPA), which of the following
contractor actions is considered a "deceptive" practice?
A) Requiring a final punch-list inspection before taking final payment
B) Accepting a deposit payment and failing to begin work within 8 weeks without
a valid reason or proper notification
C) Providing a detailed written estimate of all material costs
D) Registering their business name with the Ohio Secretary of State
, Correct Answer: B. Accepting a deposit payment and failing to begin work
within 8 weeks without a valid reason or proper notification
Accepting a deposit and then failing to commence work within a reasonable
timeframe without justification is considered an unfair or deceptive act under the
Ohio Consumer Sales Practices Act. This protects consumers from contractors who
take payments and then abandon projects .
Q8. Which Ohio agency enforces consumer protection laws related to home
improvement contractors?
A) Ohio Department of Commerce
B) Ohio Attorney General's Office
C) Ohio Construction Industry Licensing Board (OCILB)
D) Ohio Home Builders Association
Correct Answer: B. Ohio Attorney General's Office
The Ohio Attorney General's Office is responsible for enforcing consumer
protection laws, including investigating complaints against home improvement
contractors for unfair, deceptive, or unconscionable practices under the Consumer
Sales Practices Act .
Q9. For which type of work would an Ohio Home Improvement Contractor
license typically NOT be required?
A) A $1,500 bathroom remodel
B) A $2,000 deck repair
C) A $900 roof repair
D) A $5,000 kitchen cabinet installation
Correct Answer: C. A $900 roof repair
The license threshold is work exceeding $1,000. Since a $900 roof repair falls
below this minimum threshold, an HIC license would not be required at the state
level, although local municipal licenses or permits may still apply .
Practice Exam (2 VERSIONS) Comprehensive
Practice Questions with Correct Answers and
Detailed Explanations
SECTION 1: ADMINISTRATION & REGULATORY REQUIREMENTS (Questions 1-35)
Q1. In Ohio, a Home Improvement Contractor license is required for projects
exceeding what minimum total contract value?
A) $500
B) $1,000
C) $5,000
D) $10,000
Correct Answer: B. $1,000
Per Ohio Administrative Code 1301:11, a Home Improvement Contractor license is
required for any home improvement work where the total contract price, including
both labor and materials, exceeds $1,000. This threshold applies to all residential
remodeling and repair projects .
Q2. Which Ohio state agency is responsible for regulating Home Improvement
Contractors and administering the licensing program?
A) Ohio Department of Commerce
B) Ohio Attorney General's Office
C) Ohio Construction Industry Licensing Board (OCILB)
D) Ohio Home Builders Association
Correct Answer: C. Ohio Construction Industry Licensing Board (OCILB)
,The Ohio Construction Industry Licensing Board (OCILB) operates under the
Department of Commerce and is the regulatory authority responsible for licensing
and overseeing Home Improvement Contractors throughout the state of Ohio .
Q3. A valid Home Improvement Contractor license in Ohio must be renewed how
frequently?
A) Every 1 year
B) Every 2 years
C) Every 3 years
D) Every 5 years
Correct Answer: A. Every 1 year
Ohio HIC licenses expire annually, meaning they must be renewed each year by
the specified expiration date. Failure to renew on time may result in a lapse of
licensure and potential penalties for continuing to operate .
Q4. What is the minimum general liability insurance coverage required for an
Ohio Home Improvement Contractor?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
Correct Answer: B. $250,000
Ohio requires licensed Home Improvement Contractors to maintain general
liability insurance with a minimum coverage of at least $250,000 per occurrence
to protect both consumers and contractors from potential property damage or
injury claims arising from work performed .
Q5. Under Ohio's Home Improvement Sales Act, what is the legal requirement
for all contracts exceeding $1,000?
,A) They must be verbally agreed upon
B) They must be in writing and signed by both parties
C) They must be notarized by a public notary
D) They must be filed with the county recorder
Correct Answer: B. They must be in writing and signed by both parties
Ohio Revised Code 4722.02 mandates that all home improvement contracts with a
total value exceeding $1,000 must be documented in writing, dated, and signed by
both the property owner and the contractor to ensure legal enforceability and
consumer protection .
Q6. The "Right of Rescission" for a home improvement contract in Ohio allows
the homeowner to cancel the contract within how many business days without
penalty?
A) 1 business day
B) 3 business days
C) 5 business days
D) 7 business days
Correct Answer: B. 3 business days
Ohio law grants homeowners a 3-business-day right of rescission for home
improvement contracts, allowing them to cancel the agreement without penalty
within this cooling-off period. This is designed to protect consumers from high-
pressure sales tactics .
Q7. Under the Ohio Consumer Sales Practices Act (CSPA), which of the following
contractor actions is considered a "deceptive" practice?
A) Requiring a final punch-list inspection before taking final payment
B) Accepting a deposit payment and failing to begin work within 8 weeks without
a valid reason or proper notification
C) Providing a detailed written estimate of all material costs
D) Registering their business name with the Ohio Secretary of State
, Correct Answer: B. Accepting a deposit payment and failing to begin work
within 8 weeks without a valid reason or proper notification
Accepting a deposit and then failing to commence work within a reasonable
timeframe without justification is considered an unfair or deceptive act under the
Ohio Consumer Sales Practices Act. This protects consumers from contractors who
take payments and then abandon projects .
Q8. Which Ohio agency enforces consumer protection laws related to home
improvement contractors?
A) Ohio Department of Commerce
B) Ohio Attorney General's Office
C) Ohio Construction Industry Licensing Board (OCILB)
D) Ohio Home Builders Association
Correct Answer: B. Ohio Attorney General's Office
The Ohio Attorney General's Office is responsible for enforcing consumer
protection laws, including investigating complaints against home improvement
contractors for unfair, deceptive, or unconscionable practices under the Consumer
Sales Practices Act .
Q9. For which type of work would an Ohio Home Improvement Contractor
license typically NOT be required?
A) A $1,500 bathroom remodel
B) A $2,000 deck repair
C) A $900 roof repair
D) A $5,000 kitchen cabinet installation
Correct Answer: C. A $900 roof repair
The license threshold is work exceeding $1,000. Since a $900 roof repair falls
below this minimum threshold, an HIC license would not be required at the state
level, although local municipal licenses or permits may still apply .
