Business and Labor Practices Flashcards
6 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business and Labor Practices flashcards as text
An MHIC-licensed contractor wants to operate under a trade name different from their legal business name. What must they do in Maryland?
Answer: Register the trade name with the Maryland Department of Assessments and Taxation and update their MHIC records
Trade names (also called 'doing business as' or DBA names) must be registered with the Maryland Department of Assessments and Taxation, and the MHIC records should reflect all names under which the contractor operates.
Under MHIC regulations, a contractor must notify the Commission within how many days of a change in their business address?
Answer: 10 days
MHIC licensees must notify the Commission within 10 days of any change in their business address. Keeping contact information current is a licensee obligation.
Which of the following is a recommended best practice for home improvement contractors to manage cash flow?
Answer: Use progress payment schedules tied to project milestones
Progress payment schedules tied to project milestones help contractors maintain steady cash flow while ensuring homeowners only pay for completed work. This is legal and recommended under Maryland law.
An MHIC contractor is convicted of a felony. What is the likely consequence for their license?
Answer: The MHIC Commission may suspend or revoke the license
A felony conviction is grounds for MHIC license suspension or revocation, even if the crime is not directly related to home improvement work, as it reflects on the licensee's fitness and character.
A home improvement contractor in Maryland wants to accept credit card payments. Which of the following applies?
Answer: They may accept credit cards but must comply with applicable payment processing laws and disclose any surcharges
Maryland contractors may accept credit card payments. However, they must comply with payment processing regulations, including proper disclosure if a surcharge is added for credit card use.
Under MHIC regulations, what information must appear on a home improvement contractor's vehicle used for business?
Answer: The contractor's MHIC license number and business name
Maryland MHIC regulations require that vehicles used in connection with home improvement work display the contractor's business name and MHIC license number.