MHIC Safety and Regulations 6

Question 1

A Maryland home improvement contractor completes a $14,500 job and the homeowner pays in full. Three weeks later, the homeowner discovers the contractor never pulled a required permit. Under Maryland law, which of the following is the most accurate statement regarding the contractor's liability?

Accepted Answer

The contractor may face license suspension and must remedy the permit violation at no additional cost to the homeowner, even though payment was accepted.

Answer

Under Maryland's Home Improvement Law, failure to obtain required permits is a violation regardless of whether the homeowner has paid or accepted the work. The contractor remains responsible for permit compliance and can face MHIC disciplinary action including suspension. Acceptance of payment does not extinguish the contractor's regulatory obligations or liability for the violation.

Question 2

A licensed MHIC contractor is hired to replace windows in a home built in 1976. During the job, they disturb painted surfaces and generate dust. The contractor's workers are not RRP-certified. Which regulatory framework is PRIMARILY violated?

Accepted Answer

EPA's Renovation, Repair and Painting (RRP) Rule, because work disturbing lead-based paint in pre-1978 housing requires certified renovators and specific work practices.

Answer

The EPA's RRP Rule applies to renovations in pre-1978 housing that disturb more than 6 square feet of painted surface per room (interior) or 20 square feet (exterior). Contractors must be EPA RRP-certified and use lead-safe work practices. A 1976 home falls within this rule, and window replacement typically disturbs painted surfaces above the threshold. The MDE's lead abatement rules apply to a distinct activity (removal of all lead paint); RRP governs renovation work.

Question 3

Under Maryland's Home Improvement Law, a contractor's MHIC license is subject to revocation if they are found to have committed 'gross negligence.' Which scenario most clearly meets the legal threshold for gross negligence rather than ordinary negligence?

Accepted Answer

A contractor installs a deck using lumber rated for a lower load capacity than the plans specified, despite being warned by a subcontractor that the material was incorrect.

Answer

Gross negligence requires a conscious disregard of a known and serious risk — not merely a mistake or oversight. Installing structural lumber with inadequate load capacity after being explicitly warned constitutes willful disregard of a safety risk that could cause structural failure and injury. The other scenarios represent ordinary negligence (misreading code), a contract dispute (substitution), or simple accident (landscaping damage) — none rise to the conscious indifference required for gross negligence.

Question 4

A Maryland homeowner signs a home improvement contract on a Monday at the contractor's showroom. The homeowner calls on Wednesday to cancel. Under Maryland's Home Improvement Law, which statement is correct?

Accepted Answer

The homeowner can cancel within 3 business days only if the contract was solicited at the homeowner's home; a showroom signing carries no rescission right under state law.

Answer

Maryland's 3-day right of rescission for home improvement contracts applies specifically to contracts solicited at the consumer's home (door-to-door or in-home sales). When a homeowner visits a contractor's place of business and signs a contract there, the home-solicitation rescission rule does not apply. The federal FTC Cooling-Off Rule similarly applies to sales made at locations other than the seller's normal place of business. Contracts signed at a showroom or office are generally binding immediately unless the contract itself provides a cancellation window.

Question 5

An MHIC-licensed contractor is working on a project where a subcontractor's employee is injured due to a fall. The general contractor did not directly employ the injured worker. Under OSHA's multi-employer worksite doctrine, which statement best describes the general contractor's potential OSHA liability?

Accepted Answer

The general contractor can be cited as a 'controlling employer' if it had supervisory authority over the worksite and failed to correct a known fall hazard it had the authority to fix.

Answer

OSHA's multi-employer worksite policy recognizes four employer roles: creating, exposing, correcting, and controlling employers. A general contractor who controls the worksite can be cited as a 'controlling employer' if it knew (or should have known) of a hazard and had the authority to require the subcontractor to correct it — even if the GC's own employees were not exposed. Automatic liability (choice D) is incorrect; the GC must have had authority and awareness. Sole liability on the direct employer (choice C) misrepresents OSHA's multi-employer doctrine.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Safety and Regulations 6