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MHIC NASCLA Contractors Exam Review |
Authentic Exam Questions With Correct
Solutions
What is the maximum fine for contracting without a license - first offense?-
correct-answer-$1,000 and/or 6 months in jail or both
What is the maximum fine for contracting without a license - second offense?-
correct-answer-$5,000 and/or 2 years in jail or both
Contractor, Jack Smith, is not getting along with Hector Jones, his customer. If he
decides not to complete the contract, has Jack broken any law?-correct-answer-
Yes
Can a contractor decide to use a material other than specified in the contract
documents without getting permission from the owner?-correct-answer-No
Contractors may not:
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1 misrepresent their service or product
2 make false promises
3 lie on their license application
4 all of the above-correct-answer-All of the above
Contractor, Jack Brown, makes a deal with customer, Ameal Cougar, to provide an
estimate of $40,000 on a project where the actual costs are $30,000, allowing
Ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off
Jack. This is:
1 fraud
2 an illegal act
3 a misdemeanor
4 all of the above-correct-answer-All of the above
A licensed salesperson can only sell the services of licensed contractor or
subcontractors.-correct-answer-True
If a contractor's salesperson stops selling or working with the contractor for any
reason, the contractor has a responsibility to the State to inform the Commission.-
correct-answer-True
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All advertising has to provide the identifier "Maryland Home Improvement
Commission License No ______________" or "MHIC#__________".-correct-
answer-True
What is the maximum penalty the Commission may impose upon a contractor,
licensed or unlicensed, per violation of these laws:-correct-answer-$5,000
Advertising must be done in a way as to avoid misrepresenting the product,
service or terms of sale so as not to deceive the customer.-correct-answer-True
An applicant must provide to the Commission, a credit report with their
application.-correct-answer-True
How many days does a contractor have to respond to a receipt of a claim from the
commission?-correct-answer-10 days
A Home Improvement Contractor is a person who offers to...-correct-answer-
perform repairs for a homeowner.
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What is the MAXIMUM deposit permitted for a project with a total contract price
of $1,500?-correct-answer-$500
What is the MAXIMUM amount that a home improvement contactor may pay to a
homeowner for referring a client to the contractor?-correct-answer-The
contractor is NOT permitted to compensate the homeowner for referrals.
An applicant was denied a license after a hearing. When may the applicant
reapply?-correct-answer-6 months.
What license is required for a telephone salesperson that works as an
independent contractor for a home improvement contractor?-correct-answer-No
license is required.
The Home Improvement Commission holds a hearing to determine the status of
an individual's application for licensure. The Commission MUST notify the
applicant of its decision with (how many days after the hearing)?-correct-answer-
60 days.
MHIC NASCLA Contractors Exam Review |
Authentic Exam Questions With Correct
Solutions
What is the maximum fine for contracting without a license - first offense?-
correct-answer-$1,000 and/or 6 months in jail or both
What is the maximum fine for contracting without a license - second offense?-
correct-answer-$5,000 and/or 2 years in jail or both
Contractor, Jack Smith, is not getting along with Hector Jones, his customer. If he
decides not to complete the contract, has Jack broken any law?-correct-answer-
Yes
Can a contractor decide to use a material other than specified in the contract
documents without getting permission from the owner?-correct-answer-No
Contractors may not:
,2|Page
1 misrepresent their service or product
2 make false promises
3 lie on their license application
4 all of the above-correct-answer-All of the above
Contractor, Jack Brown, makes a deal with customer, Ameal Cougar, to provide an
estimate of $40,000 on a project where the actual costs are $30,000, allowing
Ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off
Jack. This is:
1 fraud
2 an illegal act
3 a misdemeanor
4 all of the above-correct-answer-All of the above
A licensed salesperson can only sell the services of licensed contractor or
subcontractors.-correct-answer-True
If a contractor's salesperson stops selling or working with the contractor for any
reason, the contractor has a responsibility to the State to inform the Commission.-
correct-answer-True
,3|Page
All advertising has to provide the identifier "Maryland Home Improvement
Commission License No ______________" or "MHIC#__________".-correct-
answer-True
What is the maximum penalty the Commission may impose upon a contractor,
licensed or unlicensed, per violation of these laws:-correct-answer-$5,000
Advertising must be done in a way as to avoid misrepresenting the product,
service or terms of sale so as not to deceive the customer.-correct-answer-True
An applicant must provide to the Commission, a credit report with their
application.-correct-answer-True
How many days does a contractor have to respond to a receipt of a claim from the
commission?-correct-answer-10 days
A Home Improvement Contractor is a person who offers to...-correct-answer-
perform repairs for a homeowner.
, 4|Page
What is the MAXIMUM deposit permitted for a project with a total contract price
of $1,500?-correct-answer-$500
What is the MAXIMUM amount that a home improvement contactor may pay to a
homeowner for referring a client to the contractor?-correct-answer-The
contractor is NOT permitted to compensate the homeowner for referrals.
An applicant was denied a license after a hearing. When may the applicant
reapply?-correct-answer-6 months.
What license is required for a telephone salesperson that works as an
independent contractor for a home improvement contractor?-correct-answer-No
license is required.
The Home Improvement Commission holds a hearing to determine the status of
an individual's application for licensure. The Commission MUST notify the
applicant of its decision with (how many days after the hearing)?-correct-answer-
60 days.
