MHIC MD Home Improvement Law 4

Question 1

Under Maryland law, what is the maximum civil penalty the MHIC can impose on an unlicensed contractor per violation?

Accepted Answer

$5,000

Answer

$500

Answer

$1,000

Answer

$10,000

Question 2

A homeowner pays a contractor $2,500 upfront for a $5,000 job, but the contractor never starts. The homeowner files a claim with the Guaranty Fund. What is the maximum the Fund will pay per claimant?

Accepted Answer

$15,000

Answer

$5,000

Answer

$10,000

Answer

$20,000

Question 3

Which of the following actions triggers automatic suspension of an MHIC license?

Accepted Answer

Conviction of a felony involving moral turpitude

Answer

Filing a late renewal application

Answer

Receiving a single consumer complaint

Answer

Hiring an unlicensed subcontractor once

Question 4

Under Maryland's Home Improvement Law, a contractor must provide a written contract for any job costing more than:

Accepted Answer

$250

Answer

$100

Answer

$500

Answer

$1,000

Question 5

A contractor wants to advertise home improvement services in Maryland. Which statement about advertising is correct?

Accepted Answer

The MHIC license number must appear in all advertisements

Answer

No license number is required in ads

Answer

Only print ads require a license number

Answer

License numbers are only needed on written contracts

Question 6

How long must a licensed Maryland home improvement contractor retain copies of all contracts and related documents?

Accepted Answer

3 years

Answer

1 year

Answer

2 years

Answer

5 years

Question 7

Which entity in Maryland has the primary authority to investigate complaints against home improvement contractors and revoke licenses?

Accepted Answer

Maryland Home Improvement Commission (MHIC)

Answer

Maryland Attorney General

Answer

Maryland Department of Labor

Answer

Maryland Board of Public Works