CR CR Legal & Regulatory Compliance 2 — Questions and Answers
Question 1: Which of the following is a key requirement of the Americans with Disabilities Act (ADA) that may affect residential remodeling projects?
- All residential homes must install elevators
- Public-facing areas of a home used for business must meet accessibility standards (Correct answer)
- Homeowners must install grab bars in all bathrooms
- ADA has no application to residential construction
Correct answer: Public-facing areas of a home used for business must meet accessibility standards
The ADA applies to areas of a home used for public business activities, which may require accessibility accommodations.
Question 2: What information must appear on a home improvement contract in most US states?
- Only the total project price and start date
- Contractor's name, license number, address, project description, price, payment schedule, and estimated completion date (Correct answer)
- Only the homeowner's name and project address
- A list of all subcontractors and their insurance policies
Correct answer: Contractor's name, license number, address, project description, price, payment schedule, and estimated completion date
Most states require contracts to include contractor identification, licensing, project description, price, payment terms, and timeline.
Question 3: What is the significance of workers' compensation insurance for a remodeling contractor?
- It is optional if workers sign liability waivers
- It covers medical costs and lost wages for workers injured on the job, protecting the contractor from lawsuits (Correct answer)
- It only covers the contractor, not employees
- It replaces the need for general liability insurance
Correct answer: It covers medical costs and lost wages for workers injured on the job, protecting the contractor from lawsuits
Workers' compensation covers employee injuries and shields the contractor from direct lawsuits related to on-the-job injuries.
Question 4: A subcontractor on a remodeling project is injured. Who is primarily responsible for the subcontractor's workers' compensation coverage?
- The homeowner
- The general contractor if the subcontractor is uninsured, in most states (Correct answer)
- The project architect
- The material supplier
Correct answer: The general contractor if the subcontractor is uninsured, in most states
In most states, a general contractor can be held responsible for workers' comp costs if a subcontractor lacks proper coverage.
Question 5: What does 'substantial completion' mean in a construction contract?
- When 50% of the work is finished
- When the work is sufficiently complete for the owner to use or occupy it for its intended purpose (Correct answer)
- When all punch list items are resolved
- When the contractor has invoiced for 90% of the contract value
Correct answer: When the work is sufficiently complete for the owner to use or occupy it for its intended purpose
Substantial completion occurs when the project is complete enough to be used for its intended purpose, even if minor items remain.
Question 6: Which of the following is true regarding asbestos in pre-1980 homes undergoing renovation?
- Contractors can remove it without special training if using dust masks
- Suspected asbestos-containing materials must be tested and, if positive, removed by licensed abatement professionals (Correct answer)
- Asbestos is only dangerous if disturbed during full demolition
- Homeowners can remove asbestos themselves as long as they notify the EPA
Correct answer: Suspected asbestos-containing materials must be tested and, if positive, removed by licensed abatement professionals
Suspected asbestos materials must be tested, and confirmed asbestos must be removed by licensed abatement professionals under strict regulations.
CR CR Legal & Regulatory Compliance 2
Which of the following is a key requirement of the Americans with Disabilities Act (ADA) that may affect residential remodeling projects?