MHIC Basic 1

Question 1

What is a requirement of a home improvement contract in the following choices?

Accepted Answer

Before work starts, the customer receives a signed copy of the contract.

Answer

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

Answer

When the property owner will do the house improvements.

Answer

The cost of replacing substandard materials

Question 2

What is the maximum deposit a contractor may ask to install a deck attached to a house if the entire contract value is $5,400?

Accepted Answer

$1,800

Answer

$3,800

Answer

$840

Answer

$2,400

Question 3

A garbage can was ordered and built by a home improvement contractor. The next winter, the roof failed to withstand the snow weight, resulting in damage to both the roof and the owner's automobile. The contractor restored the roof but refused to pay for automobile repairs. How much may the property owner recover from the home improvement guaranty fund for automobile repairs?

Accepted Answer

Nothing

Answer

Total of car's damage

Answer

Something

Answer

21 Days

Question 4

An example of non-door-to-door sales

Accepted Answer

Sale of a $300 investment advising package by credit card transaction via the internet

Answer

Before beginning work, the customer receives a signed copy of the contract.

Answer

Sale of insurance to a homeowner in his house

Answer

A roofing contractor was contacted to repair a leak in a property's roof. Sells the owner a contract for a whole new roof.

Question 5

What is the first assessment for each home improvement contractor's guarantee fund?

Accepted Answer

$100

Answer

$50,000

Answer

$150

Answer

$250

Question 6

What are the reasons for canceling a home improvement contractor's license?

Accepted Answer

failure to submit information on changes in ownership of the firm

Answer

sale of insurance to a homeowner in his house

Answer

a list and description of the materials to be utilized in the project

Answer

within 10 business days of the seller receiving the cancellation notification

Question 7

A home improvement contractor is offering an affordable price on hot tubs. His advertisements just show the basic price of the tub. What is required in his advertisement?

Accepted Answer

A disclaimer indicating that any accessories shown or that may be required for operation are not included in the stated price.

Answer

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

Answer

Within 10 business days of the seller receiving the cancellation notification.

Answer

None, no legal requirement.

Question 8

A customer cancelled within the specified time frame, and the vendor reimbursed the deposit. How does the seller reclaim possession of the merchandise?

Accepted Answer

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

Answer

Within 10 business days of the seller receiving the cancellation notification.

Answer

A statement indicating that the quoted price does not include the accessories displayed or that may be required for operation.

Answer

A $5,000 fine and imprisonment of up to three years for the contractor and the owner.

Question 9

John Jones and Company, a home improvement contractor, is changing his firm's name to John Jones and Son. When should he tell the Home Improvement Commission?

Accepted Answer

Within 10 days of the change

Answer

The duration of the current license

Answer

Within 8 days of the change

Answer

Within 3 days of the change

Question 10

Who is necessary to receive a Maryland home improvement license?

Accepted Answer

A contractor who works in Maryland but does not have his or her primary business location there.

Answer

A list and description of the materials to be utilized in the project.

Answer

Show proof of general liability insurance.

Answer

The letters MHIC# and his license number in three-inch high letters on both sides of the car.