ICC Consumer Protection and Dispute Resolution 1 — Questions and Answers
Question 1: The Illinois Home Repair and Remodeling Act primarily protects consumers by requiring contractors to:
- Use only union labor
- Provide written contracts and disclose lien rights (Correct answer)
- Obtain insurance from state-approved carriers only
- Complete work within 30 days of signing
Correct answer: Provide written contracts and disclose lien rights
The Illinois Home Repair and Remodeling Act mandates written contracts and requires contractors to inform homeowners of their rights regarding mechanics liens.
Question 2: Under Illinois law, what right does a homeowner have if a contractor solicits work at their door without being invited?
- No special rights — the contract is immediately binding
- A 3-day right to cancel the contract (Right of Rescission) (Correct answer)
- The right to negotiate a 20% discount
- The right to demand a background check
Correct answer: A 3-day right to cancel the contract (Right of Rescission)
Illinois and federal law provide consumers a 3-business-day right to cancel contracts signed in their home following an unsolicited sales visit.
Question 3: What is the Illinois Consumer Fraud and Deceptive Business Practices Act designed to prevent in the contracting context?
- Contractors working without helmets
- Misleading advertising, false promises, and deceptive pricing by contractors (Correct answer)
- Contractors from working across county lines
- Overtime pay disputes
Correct answer: Misleading advertising, false promises, and deceptive pricing by contractors
This Illinois Act prohibits contractors from engaging in deceptive practices such as misrepresenting qualifications, prices, or the work to be performed.
Question 4: A contractor who accepts a large deposit and then abandons a project without completing work may be charged with:
- A minor administrative violation
- Home repair fraud, a criminal offense under Illinois law (Correct answer)
- Only a civil breach of contract
- A building code violation only
Correct answer: Home repair fraud, a criminal offense under Illinois law
Illinois law makes home repair fraud a criminal offense when a contractor accepts payment and intentionally fails to perform the agreed-upon work.
Question 5: Which Illinois agency handles consumer complaints against fraudulent or unlicensed contractors?
- Illinois Tollway Authority
- Illinois Attorney General's Office (Correct answer)
- Illinois Department of Agriculture
- Illinois State Treasurer
Correct answer: Illinois Attorney General's Office
The Illinois Attorney General's Office investigates and prosecutes consumer fraud complaints, including those involving deceptive contractors.
Question 6: When an ICC contractor's estimate turns out to be significantly lower than the final bill, what is the ethical obligation?
- The contractor may charge any amount they want
- The contractor must disclose cost overruns as soon as they are identified and get written approval (Correct answer)
- Only verbal notification to the homeowner is needed
- The contractor should complete the work and present the larger bill at the end
Correct answer: The contractor must disclose cost overruns as soon as they are identified and get written approval
Ethical and legal practice requires contractors to disclose cost overruns immediately and obtain written change order approval before proceeding with additional work.
ICC Consumer Protection and Dispute Resolution 1
The Illinois Home Repair and Remodeling Act primarily protects consumers by requiring contractors to: