Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
← All MHIC Flashcard Decks

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

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

    Answer: Two

    According to the Maryland Home Improvement Commission (MHIC) regulations, a licensed salesperson is permitted to represent no more than two licensed contractors simultaneously.

  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?

    Answer: $10,000

    Maryland law explicitly prohibits a home improvement contractor from accepting more than one-third (1/3) of the total contract price as a deposit before or at the time of signing the contract. For a $30,000 project, this amounts to a maximum deposit of $10,000.

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

    Answer: The MHIC license number.

    The Maryland Home Improvement Law requires that all advertisements, including business cards, websites, and vehicles, must conspicuously display the contractor's MHIC license number.

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

    Answer: 10 days

    MHIC regulations require licensees to notify the Commission of any change of address, trade name, or business ownership within 10 days of the change. This notification must be sent via certified mail.

  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?

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

    As of July 1, 2016, Maryland eliminated the separate subcontractor license category. Subcontractors may work without a specific MHIC license, provided they are performing work for a contractor who holds a valid MHIC license. The licensed prime contractor is ultimately responsible for the project.

  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?

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

    Maryland's Prevailing Wage Law has specific overtime rules for public works contracts. It requires that employees be paid overtime for any hours worked in excess of 10 hours in a single calendar day, as well as for work on Sundays or legal holidays.