Education Flashcards

What is the license application fee for a salesperson license?

Answer: $120

The Maryland Home Improvement Commission (MHIC) sets specific fees for various licenses. For a salesperson license, the established application fee is $120. This is a direct regulatory cost associated with obtaining the necessary authorization to work as a home improvement salesperson in Maryland.

The Home Improvement Commission has issued a proposed order to pay a claim of $2,000 against a contractor, with a copy delivered to the contractor. The contractor is required to respond within what period of time if he wishes to appeal or contest the award.

Answer: 21 days

When the Maryland Home Improvement Commission (MHIC) issues a proposed order to pay a claim against a contractor, the contractor is granted a specific period to respond. According to MHIC regulations, the contractor must appeal or contest the award within 21 days of receiving the proposed order. This timeframe ensures due process and allows the contractor to present their case.

A salesperson currently working for two contractors resigns from one of his employers to accept employment with another contractor. Who is responsible for notifying the Maryland home improvement commission of his resignation?

Answer: The former employer

In Maryland, if a licensed home improvement salesperson resigns from their employment, the responsibility for notifying the Maryland Home Improvement Commission (MHIC) falls on the former employer. This regulation ensures that the MHIC's records are accurately updated regarding the employment status of licensed salespersons. It helps maintain proper oversight within the home improvement industry.

A salesperson has obtained a signed contract and a deposit for a building a deck, subject to acceptance by the contractor. The contractor elects not to accept the contract. When must he return the deposit to the owner.

Answer: Within 10 working days of the date of the contract

Maryland consumer protection laws specify that if a contractor decides not to accept a contract obtained by a salesperson, any deposit collected must be promptly returned to the owner. The contractor is legally required to return the deposit within 10 working days from the date the contract was originally signed. This protects consumers by ensuring their funds are not held indefinitely if a project does not proceed.

Home Improvement contractor John Jones and company is changing the name of his firm to John Jones and son. When must he notify the Home Improvement Commission?

Answer: Within 10 days of the change

Licensed home improvement contractors in Maryland are required to keep the Maryland Home Improvement Commission (MHIC) informed of any significant changes to their business information. If a firm changes its name, the contractor must notify the MHIC within 10 days of the change. This ensures that the Commission's records remain accurate and up-to-date for regulatory purposes.

An owner and a contractor prepare a false certificate of completion for presentation to the contractors bank to obtain additional credit. What is the maximum penalty upon conviction?

Answer: A $5,000 fine and imprisonment up to 3 years for the contractor and the owner

Creating a false certificate of completion to obtain credit from a bank constitutes a serious act of fraud under Maryland law. Both the contractor and the owner involved in such a scheme face severe penalties upon conviction. The maximum penalty for this offense is a $5,000 fine and imprisonment for up to 3 years, reflecting the gravity of defrauding financial institutions.

An individual seeking a Home Improvement contractors license was denied by the Home Improvement commission due to failure to provide the required financial information. Following a hearing the denial was reaffirmed. How longs must he wait before he may reapply for a license.

Answer: 6 months

If an individual's application for a Home Improvement Contractor's license is denied by the MHIC and that denial is upheld after a hearing, there is a mandatory waiting period before reapplication. The applicant must wait 6 months from the date the denial was reaffirmed. This period allows time for the applicant to address the issues that led to the initial denial.

A claim against the Home Improvement Guaranty Fund must be brought to the commission within what period of time?

Answer: Within 3 years of discovering the loss or damage

The Maryland Home Improvement Guaranty Fund provides financial recourse for consumers who suffer losses due to a licensed contractor's actions. To make a claim against this fund, the consumer must bring the claim to the Commission within 3 years of discovering the loss or damage. This statute of limitations ensures claims are filed in a timely manner.

Example of not a door to door sale?

Answer: Sale of a $300 investment advisory program via credit card purchase over the internet

A 'door-to-door sale' is specifically defined as a sale initiated by a seller at a buyer's residence, not at a fixed business location. An online purchase, regardless of the item or amount, does not fit this definition because the transaction occurs remotely over the internet, not in person at the buyer's home. Therefore, an online sale of an investment advisory program is not a door-to-door sale.

A contractors representative makes a door to door sale at 10:30am, Wednesday, December 23rd. The salesperson doesn't turn in the sale contract until December 28th. When is the latest the buyer may exercise their right to cancel?

Answer: Midnight December 28th

For door-to-door sales, consumers typically have a three-business-day right to cancel, starting after the contract is signed and they receive notice of their cancellation rights. If the contract was signed on Wednesday, December 23rd, and assuming December 25th is a holiday and December 27th is a Sunday, the three business days would be December 24th, December 26th, and December 28th. Therefore, the latest the buyer can cancel is midnight on December 28th.

A buyer has canceled a sale within the allowable time period. When must any goods or property traded in be returned?

Answer: Within 10 business days after the seller receives the cancellation notice

Consumer protection laws, particularly those related to door-to-door sales, mandate that sellers promptly return any goods or property traded in by a buyer who has canceled a sale within the allowable period. The seller is required to return these items within 10 business days after receiving the buyer's cancellation notice. This ensures the buyer is fully restored to their original position after rescinding the contract.