NY HOME IMPROVEMENT CONTRACTOR
EXAM STUDYGUIDE TEST PAPER QUESTIONS
AND SOLUTIONS 100% CORRECT FOR THE
2026 FINAL.
⫸ Consumer's Right to Cancel. Ans: A contractor or sales person
must inform the consumer of their right to cancel a home
improvement contract within three business days from the contract
date.
⫸ Notice of Cancellation. Ans: A separate notice of cancellation
must be provided to the consumer at the time they sign the contract.
⫸ Subcontractor Licensing. Ans: A subcontractor must have a DCA
license to perform home improvement work in New York City.
⫸ Contract Attachment Requirement. Ans: The contractor or sales
person must attach two copies of a separate completed form titled
'Notice of Cancellation' to the signed contract.
⫸ Employee Obligations. Ans: You must cover employees with
workers' compensation and disability insurance.
⫸ Employee wages reporting. Ans: Must report employee wages to
the Internal Revenue Service, and you must withhold taxes.
, ⫸ Penalties for false representation. Ans: A contractor or sales
person who lies is subject to fines of up to 500 dollars for each
separate misrepresentation; additionally, a contract entered into after
misrepresentation may be declared null and void, and a contractor
may be ordered to pay restitution to the consumer.
⫸ Penalties for operating without a license. Ans: Any person who
owns or operates a home improvement business without a license or
after a license is suspended or revoked is guilty of a misdemeanor and
may be prosecuted criminally and subject to up to six months
imprisonment or $1000 in fines.
⫸ Home improvement definition. Ans: The construction, repair,
replacement, remodeling, alteration, conversion, rehabilitation,
renovation, modernization, improvement, or addition to any land or
building or any part of the land or building used or designed to be
used as a residence or dwelling place, including basements,
driveways, fences, garages, landscaping, patios, porches, sidewalks,
swimming pools, and terraces.
⫸ Home improvement contract. Ans: A 'home improvement contract'
is an agreement, whether or not in writing, between a contractor and a
consumer or tenant for performance of a home improvement and
includes all labor, services, and materials to be furnished and
performed.
EXAM STUDYGUIDE TEST PAPER QUESTIONS
AND SOLUTIONS 100% CORRECT FOR THE
2026 FINAL.
⫸ Consumer's Right to Cancel. Ans: A contractor or sales person
must inform the consumer of their right to cancel a home
improvement contract within three business days from the contract
date.
⫸ Notice of Cancellation. Ans: A separate notice of cancellation
must be provided to the consumer at the time they sign the contract.
⫸ Subcontractor Licensing. Ans: A subcontractor must have a DCA
license to perform home improvement work in New York City.
⫸ Contract Attachment Requirement. Ans: The contractor or sales
person must attach two copies of a separate completed form titled
'Notice of Cancellation' to the signed contract.
⫸ Employee Obligations. Ans: You must cover employees with
workers' compensation and disability insurance.
⫸ Employee wages reporting. Ans: Must report employee wages to
the Internal Revenue Service, and you must withhold taxes.
, ⫸ Penalties for false representation. Ans: A contractor or sales
person who lies is subject to fines of up to 500 dollars for each
separate misrepresentation; additionally, a contract entered into after
misrepresentation may be declared null and void, and a contractor
may be ordered to pay restitution to the consumer.
⫸ Penalties for operating without a license. Ans: Any person who
owns or operates a home improvement business without a license or
after a license is suspended or revoked is guilty of a misdemeanor and
may be prosecuted criminally and subject to up to six months
imprisonment or $1000 in fines.
⫸ Home improvement definition. Ans: The construction, repair,
replacement, remodeling, alteration, conversion, rehabilitation,
renovation, modernization, improvement, or addition to any land or
building or any part of the land or building used or designed to be
used as a residence or dwelling place, including basements,
driveways, fences, garages, landscaping, patios, porches, sidewalks,
swimming pools, and terraces.
⫸ Home improvement contract. Ans: A 'home improvement contract'
is an agreement, whether or not in writing, between a contractor and a
consumer or tenant for performance of a home improvement and
includes all labor, services, and materials to be furnished and
performed.
