MHIC - Maryland Home Improvement Contractor Business and Labor Practices Questions and Answers

Question 1

A licensed Maryland Home Improvement salesperson may represent a maximum of how many licensed contractors at any given time?

Accepted Answer

Two

Answer

One

Answer

Three

Answer

There is no limit

Question 2

A contractor is preparing a home improvement contract for a $30,000 kitchen remodel. What is the maximum deposit the contractor can legally require from the homeowner before work begins?

Accepted Answer

$10,000

Answer

$5,000

Answer

$15,000

Answer

Any amount agreed upon in the contract

Question 3

Which of the following is a mandatory requirement for all advertisements for a home improvement business in Maryland?

Accepted Answer

The MHIC license number.

Answer

The business's years of experience.

Answer

A list of services offered.

Answer

The contractor's personal phone number.

Question 4

A licensed contractor in Maryland must notify the MHIC of any change in their business address or trade name within how many days?

Accepted Answer

10 days

Answer

30 days

Answer

60 days

Answer

90 days

Question 5

A subcontractor is hired by a licensed general contractor to perform electrical work on a residential remodeling project. Under Maryland law, which of the following is true regarding the subcontractor's licensing requirements?

Accepted Answer

The subcontractor is not required to have an MHIC license as long as they are working for a licensed contractor.

Answer

The subcontractor must have their own MHIC contractor license.

Answer

The subcontractor must obtain a special 'subcontractor-only' license from the MHIC.

Answer

The subcontractor only needs a license if the value of their work exceeds $5,000.

Question 6

Regarding labor practices, if a contractor's employee works on a state-funded public works project, what is a key requirement under Maryland's Prevailing Wage Law?

Accepted Answer

Employees must be paid overtime for hours exceeding 10 in a single day.

Answer

Employees must be paid the federal minimum wage.

Answer

Overtime must be paid for any hours worked over 40 in a week.

Answer

The contractor can set any wage rate as long as it's in the employment agreement.