New Jersey Home Improvement Contractor
Exam Practice Test Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
All topics covered: NJ Contractor Law, Contracts, Business Practices, Safety,
Codes, Consumer Protection, Finance, Estimating, Liens
1. A New Jersey Home Improvement Contractor must register with which
agency before performing work in the state?
A. Division of Revenue
B. New Jersey Division of Consumer Affairs
C. New Jersey Department of Labor
D. Local Building Department
Rationale: The NJ Division of Consumer Affairs oversees the HIC
registration program for consumer protection.
2. Home improvement contracts in NJ must be in writing when the total
price exceeds:
, A. $100
B. $300
C. $500
D. $1,000
Rationale: State law requires written contracts for any job of $500 or
more.
3. A contractor’s HIC registration in NJ is valid for how long?
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Rationale: NJ HIC registration must be renewed every two years.
4. The New Jersey Consumer Fraud Act is designed to protect:
A. Only licensed businesses
B. Commercial property owners
C. Consumers from deceptive business practices
D. State agencies
Rationale: The Act prevents fraud and mandates fair business
practices.
5. A home improvement contractor in NJ must provide proof of:
A. Workers compensation only
B. No insurance required
C. Auto insurance only
, D. Commercial general liability insurance
Rationale: Liability insurance is required for obtaining and
maintaining registration.
6. What must be included in a written home improvement contract?
A. Contractor hobbies
B. Social security number
C. Start and completion dates
D. Business competitor list
Rationale: Dates are required for consumer protection and
scheduling transparency.
7. Change orders must be:
A. Verbal
B. Written and signed by both parties
C. Sent by email only
D. Issued by inspector
Rationale: Written change orders protect both contractor and
customer regarding modifications and costs.
8. A contractor advertising “special discounts” must:
A. Offer them every day
B. Clearly disclose all terms and limitations
C. Add hidden fees
D. Mention only verbally
Exam Practice Test Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
All topics covered: NJ Contractor Law, Contracts, Business Practices, Safety,
Codes, Consumer Protection, Finance, Estimating, Liens
1. A New Jersey Home Improvement Contractor must register with which
agency before performing work in the state?
A. Division of Revenue
B. New Jersey Division of Consumer Affairs
C. New Jersey Department of Labor
D. Local Building Department
Rationale: The NJ Division of Consumer Affairs oversees the HIC
registration program for consumer protection.
2. Home improvement contracts in NJ must be in writing when the total
price exceeds:
, A. $100
B. $300
C. $500
D. $1,000
Rationale: State law requires written contracts for any job of $500 or
more.
3. A contractor’s HIC registration in NJ is valid for how long?
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Rationale: NJ HIC registration must be renewed every two years.
4. The New Jersey Consumer Fraud Act is designed to protect:
A. Only licensed businesses
B. Commercial property owners
C. Consumers from deceptive business practices
D. State agencies
Rationale: The Act prevents fraud and mandates fair business
practices.
5. A home improvement contractor in NJ must provide proof of:
A. Workers compensation only
B. No insurance required
C. Auto insurance only
, D. Commercial general liability insurance
Rationale: Liability insurance is required for obtaining and
maintaining registration.
6. What must be included in a written home improvement contract?
A. Contractor hobbies
B. Social security number
C. Start and completion dates
D. Business competitor list
Rationale: Dates are required for consumer protection and
scheduling transparency.
7. Change orders must be:
A. Verbal
B. Written and signed by both parties
C. Sent by email only
D. Issued by inspector
Rationale: Written change orders protect both contractor and
customer regarding modifications and costs.
8. A contractor advertising “special discounts” must:
A. Offer them every day
B. Clearly disclose all terms and limitations
C. Add hidden fees
D. Mention only verbally
