Home Improvement Contractor Exam Q-Bank |100% Certified
Questions & Answers | Grade A Taken by: prolearn
Contractor Practice Test 100% Score
1. In a scenario where an H.I. Contractor fails to ensure compliance with building
codes for a renovation project, what could be the implications for the homeowner?
The homeowner will receive a tax rebate.
The homeowner will be exempt from all building regulations.
The homeowner may face fines and be required to rectify the noncompliance
issues.
The homeowner will automatically receive a permit.
2. What must a contractor provide if a consumer requests additional work beyond the
original contract?
An informal estimate
Averbal agreement
A cancellation notices
A written amendment to the contract
3. When must a consumer receive a completed copy of the home improvement
contract?
1
, At the time of signing and before any work is done.
After the work is completed.
Only if requested by the consumer.
Within 30 days of signing.
4. Why is it important for a contractor to disclose the fee for an estimate to the
consumer?
To limit the consumer's options
To ensure transparency and avoid misunderstandings
To comply with federal regulations
To increase the contractor's profit margin
5. Why is it important for contractors to honor a notice of cancellation within 10
business days?
It gives contractors more time to complete the work.
It allows contractors to retain deposits.
It protects consumer rights and ensures fair business practices.
It prevents consumers from changing their minds.
6. If a homeowner wishes to cancel a contract after 2 days, what are their rights under
New York City regulations?
They must pay a cancellation fee.
They can request a partial refund.
They cannot cancel as the cancellation period has not elapsed.
They can cancel without any penalties.
,7. If a contractor has completed a home improvement project but has not yet paid all
subcontractors, what can they legally do with the customer payments?
The contractor can use customer payments for unrelated expenses as long as
they have a written agreement.
The contractor cannot use customer payments for unrelated expenses
until all expenses for direct labor, material, and subcontractors have
been paid.
The contractor can use customer payments for unrelated expenses immediately
after project completion.
The contractor can use customer payments for unrelated expenses if they notify
the customer.
8. Which of the following the subcontractor must have to be a lawful subcontractor?
attorney
None of the above
Permit
Licensed
9. Home improvement contracts must include, among other things:
The "Notice to Owner"
All the above
The name, address, and license number of the contractor
The name and registration number of the salesperson soliciting or negotiating
the contract
3
, 10. If a contractor fails to include the required notices in their contract, what potential
consequences might they face?
They may face legal disputes or claims from the homeowner regarding
payment and project completion.
They will automatically lose the job and receive no payment.
They will have to redo the entire project at no cost.
They will be required to pay fines to the city.
11. Why is it important for a home improvement contractor to adhere to the 3day
cancellation period?
It protects consumers by allowing them time to reconsider their decision.
It ensures that permits are obtained in time.
It gives contractors time to gather materials.
It allows contractors to prepare for the job.
12. A contractor offers a 'lifetime warranty' on their work. What should a consumer do
in response to this offer?
Negotiate for a longer warranty period
Inquire about the specifics and legality of the warranty before agreeing
Report the contractor to the authorities
Accept the offer immediately
13. What must be included in a Home Improvement contract regarding payment?
Questions & Answers | Grade A Taken by: prolearn
Contractor Practice Test 100% Score
1. In a scenario where an H.I. Contractor fails to ensure compliance with building
codes for a renovation project, what could be the implications for the homeowner?
The homeowner will receive a tax rebate.
The homeowner will be exempt from all building regulations.
The homeowner may face fines and be required to rectify the noncompliance
issues.
The homeowner will automatically receive a permit.
2. What must a contractor provide if a consumer requests additional work beyond the
original contract?
An informal estimate
Averbal agreement
A cancellation notices
A written amendment to the contract
3. When must a consumer receive a completed copy of the home improvement
contract?
1
, At the time of signing and before any work is done.
After the work is completed.
Only if requested by the consumer.
Within 30 days of signing.
4. Why is it important for a contractor to disclose the fee for an estimate to the
consumer?
To limit the consumer's options
To ensure transparency and avoid misunderstandings
To comply with federal regulations
To increase the contractor's profit margin
5. Why is it important for contractors to honor a notice of cancellation within 10
business days?
It gives contractors more time to complete the work.
It allows contractors to retain deposits.
It protects consumer rights and ensures fair business practices.
It prevents consumers from changing their minds.
6. If a homeowner wishes to cancel a contract after 2 days, what are their rights under
New York City regulations?
They must pay a cancellation fee.
They can request a partial refund.
They cannot cancel as the cancellation period has not elapsed.
They can cancel without any penalties.
,7. If a contractor has completed a home improvement project but has not yet paid all
subcontractors, what can they legally do with the customer payments?
The contractor can use customer payments for unrelated expenses as long as
they have a written agreement.
The contractor cannot use customer payments for unrelated expenses
until all expenses for direct labor, material, and subcontractors have
been paid.
The contractor can use customer payments for unrelated expenses immediately
after project completion.
The contractor can use customer payments for unrelated expenses if they notify
the customer.
8. Which of the following the subcontractor must have to be a lawful subcontractor?
attorney
None of the above
Permit
Licensed
9. Home improvement contracts must include, among other things:
The "Notice to Owner"
All the above
The name, address, and license number of the contractor
The name and registration number of the salesperson soliciting or negotiating
the contract
3
, 10. If a contractor fails to include the required notices in their contract, what potential
consequences might they face?
They may face legal disputes or claims from the homeowner regarding
payment and project completion.
They will automatically lose the job and receive no payment.
They will have to redo the entire project at no cost.
They will be required to pay fines to the city.
11. Why is it important for a home improvement contractor to adhere to the 3day
cancellation period?
It protects consumers by allowing them time to reconsider their decision.
It ensures that permits are obtained in time.
It gives contractors time to gather materials.
It allows contractors to prepare for the job.
12. A contractor offers a 'lifetime warranty' on their work. What should a consumer do
in response to this offer?
Negotiate for a longer warranty period
Inquire about the specifics and legality of the warranty before agreeing
Report the contractor to the authorities
Accept the offer immediately
13. What must be included in a Home Improvement contract regarding payment?
