General Contractor's License Exam CORRECT
100%
Minnesota requires that all builders continue their education by attending 7 hours of classroom study
per year, with at least 1 hour dedicated to: - ANSWER Energy efficiency
It is a law that you must notify, in writing, if you change your business name or your address where you
conduct business, within - ANSWER 15 days
Penalties for violation of laws relating to the residential building industry include - ANSWER 1. Civil
penalties up to $10,000, per violation
2. Denial of a license at application or renewal
3. License suspension up to 2 years or license revoked at least 2 years
4. Void of lien rights
***5. All of the above
A person can be a qualifying person for two corporations if at least 25% of each corporation has common
ownership, or the second corporation is a subsidiary of the parent corporation with at least 25% owned
by the parent - ANSWER True
A company has __________ days from the departure of a qualifying licensee to obtain a new qualifying
person. - ANSWER 120
By law, you must display the license number on all building permits, applications, business cards,
contracts, lien claims and display advertising. - ANSWER True
It is the responsibility of the subcontractors to comply with the state building code. - ANSWER False
A person required to be licensed, who performs unlicensed work, is guilty of a misdemeanor. - ANSWER
True
, A person required to be licensed, who violates an order from the Commissioner, is guilty of a gross
misdemeanor. - ANSWER True
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
A person who fails to apply for renewal by March 31st is considered licensed for 30 days, or until the new
license is issued by the Commissioner. - ANSWER False
By law, a political subdivision that issues building permits on zoning or land use permits, shall report all
unlicensed persons required by law to be licensed, when they apply for a permit. - ANSWER True
Who is responsible for determining who is qualified to be licensed by the State of Minnesota? - ANSWER
Department of Labor and Industry
Under whose authority is the Department of Labor and Industry given the responsibility to determine
who is qualified to become licensed? - ANSWER Commissioner of the Department
Anyone in the business of building residential real estate, or who contracts or offers to improve
residential real estate, must be licensed, unless yearly gross receipts are less than $15,000 and they have
received a Certificate of Exemption from the Department of Commerce. - ANSWER True
What is the primary reason Minnesota requires contractors to be licensed? - ANSWER To protect public
health, safety and welfare
A contractor is required to be licensed if his gross annual receipts exceed: - ANSWER $15,000
The maximum payment per claim paid out of the Contractor Recovery Fund is: - ANSWER $75,000
The maximum payment per licensee out of the Contractor Recovery Fund is: - ANSWER $150,000
, Chapter 326 of the Minnesota Statutes requires who to hold a contractor license? - ANSWER Any person
who uses two or more special skills to improve residential real estate
In a contract, it shall be stipulated that the owner will be held harmless against injury or damage that
results from mutual negligence. This is known as: - ANSWER Indemnification
After a contract is signed, the ____________________ is responsible for obtaining and paying for any
necessary permits, fees, licenses and inspections. - ANSWER General Contractor
If a contractor has been paid by the owner for improvements provided by laborers and material
providers, but neglects to pay the providers because he has spent the money for other reasons, this is
called - ANSWER Diversion of Funds
If there is no written contract between the prime contractor and the owner, a notification of the
possibility of liens being placed against an owner's property must be delivered by the contractor
personally or by certified mail within __________ of the agreement to provide the improvements. -
ANSWER 10 days
Can the notification of the possibility of liens being placed against an owner's property be made part of a
written contract? - ANSWER Yes
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
Commencement of Action to collect on the lien claim must be filed with the County Recorder within
_______________ from the date of the last item recorded in the lien statement. - ANSWER 1 year
What is the penalty to a lien claimant who knowingly demands more than what is justly due? - ANSWER
Claimant receives nothing
100%
Minnesota requires that all builders continue their education by attending 7 hours of classroom study
per year, with at least 1 hour dedicated to: - ANSWER Energy efficiency
It is a law that you must notify, in writing, if you change your business name or your address where you
conduct business, within - ANSWER 15 days
Penalties for violation of laws relating to the residential building industry include - ANSWER 1. Civil
penalties up to $10,000, per violation
2. Denial of a license at application or renewal
3. License suspension up to 2 years or license revoked at least 2 years
4. Void of lien rights
***5. All of the above
A person can be a qualifying person for two corporations if at least 25% of each corporation has common
ownership, or the second corporation is a subsidiary of the parent corporation with at least 25% owned
by the parent - ANSWER True
A company has __________ days from the departure of a qualifying licensee to obtain a new qualifying
person. - ANSWER 120
By law, you must display the license number on all building permits, applications, business cards,
contracts, lien claims and display advertising. - ANSWER True
It is the responsibility of the subcontractors to comply with the state building code. - ANSWER False
A person required to be licensed, who performs unlicensed work, is guilty of a misdemeanor. - ANSWER
True
, A person required to be licensed, who violates an order from the Commissioner, is guilty of a gross
misdemeanor. - ANSWER True
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
A person who fails to apply for renewal by March 31st is considered licensed for 30 days, or until the new
license is issued by the Commissioner. - ANSWER False
By law, a political subdivision that issues building permits on zoning or land use permits, shall report all
unlicensed persons required by law to be licensed, when they apply for a permit. - ANSWER True
Who is responsible for determining who is qualified to be licensed by the State of Minnesota? - ANSWER
Department of Labor and Industry
Under whose authority is the Department of Labor and Industry given the responsibility to determine
who is qualified to become licensed? - ANSWER Commissioner of the Department
Anyone in the business of building residential real estate, or who contracts or offers to improve
residential real estate, must be licensed, unless yearly gross receipts are less than $15,000 and they have
received a Certificate of Exemption from the Department of Commerce. - ANSWER True
What is the primary reason Minnesota requires contractors to be licensed? - ANSWER To protect public
health, safety and welfare
A contractor is required to be licensed if his gross annual receipts exceed: - ANSWER $15,000
The maximum payment per claim paid out of the Contractor Recovery Fund is: - ANSWER $75,000
The maximum payment per licensee out of the Contractor Recovery Fund is: - ANSWER $150,000
, Chapter 326 of the Minnesota Statutes requires who to hold a contractor license? - ANSWER Any person
who uses two or more special skills to improve residential real estate
In a contract, it shall be stipulated that the owner will be held harmless against injury or damage that
results from mutual negligence. This is known as: - ANSWER Indemnification
After a contract is signed, the ____________________ is responsible for obtaining and paying for any
necessary permits, fees, licenses and inspections. - ANSWER General Contractor
If a contractor has been paid by the owner for improvements provided by laborers and material
providers, but neglects to pay the providers because he has spent the money for other reasons, this is
called - ANSWER Diversion of Funds
If there is no written contract between the prime contractor and the owner, a notification of the
possibility of liens being placed against an owner's property must be delivered by the contractor
personally or by certified mail within __________ of the agreement to provide the improvements. -
ANSWER 10 days
Can the notification of the possibility of liens being placed against an owner's property be made part of a
written contract? - ANSWER Yes
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
An unlicensed person cannot exercise lien rights in the State of Minnesota. If a lien is placed, the state
will consider it: - ANSWER Void
Commencement of Action to collect on the lien claim must be filed with the County Recorder within
_______________ from the date of the last item recorded in the lien statement. - ANSWER 1 year
What is the penalty to a lien claimant who knowingly demands more than what is justly due? - ANSWER
Claimant receives nothing
