MHIC MHIC Maryland Home Improvement Law and Contracts 3

Question 1

An MHIC contractor completes a kitchen remodel but leaves the job site before completing the punch-list items the homeowner requested. This may constitute which violation under the MHIA?

Accepted Answer

Abandonment of a home improvement contract

Answer

Exceeding the deposit limit

Answer

Failure to obtain a surety bond

Answer

Unauthorized subcontracting

Question 2

A homeowner wants to add a room to their house. The contractor they hire has an MHIC license. Which statement is CORRECT regarding permits for this project?

Accepted Answer

The contractor should pull the necessary building permit from the local jurisdiction

Answer

The MHIC license exempts the project from local permit requirements

Answer

The homeowner is solely responsible for obtaining all permits

Answer

Room additions never require permits under Maryland law

Question 3

Which of the following is a REQUIRED element of every written home improvement contract in Maryland?

Accepted Answer

The MHIC license number of the contractor

Answer

The contractor's federal tax identification number

Answer

The homeowner's mortgage lender's name and address

Answer

A list of all materials with catalog numbers

Question 4

A contractor performs home improvement work without an MHIC license on a project valued at $2,000. What penalty does the contractor potentially face under Maryland law?

Accepted Answer

A civil fine of up to $5,000 per violation and possible criminal charges

Answer

A warning letter only for a first offense

Answer

Mandatory enrollment in a contractor education course

Answer

Forfeiture of tools used on the job site

Question 5

A homeowner rescinds (cancels) a home improvement contract within the allowable period. What must the contractor do?

Accepted Answer

Return any deposit paid by the homeowner within 10 days and not begin work

Answer

Keep the signed contract and any deposit as a cancellation fee

Answer

Begin the work immediately to establish job completion before the rescission takes effect

Answer

Charge the homeowner for any design work already performed

Question 6

Under the MHIA, which of the following disclosures MUST appear on the face of every home improvement contract?

Accepted Answer

Notice of the homeowner's right to cancel the contract

Answer

The contractor's workers' compensation insurance policy number

Answer

The names of all employees who will work on the project

Answer

The contractor's personal home address

Question 7

A licensed MHIC contractor wants to make a change to the scope of work after the original contract has been signed. What is the proper procedure under Maryland law?

Accepted Answer

Any change to the contracted work must be documented in a signed written change order before the additional work is performed

Answer

The contractor may verbally agree to changes, as long as both parties are present

Answer

The contractor should simply complete the additional work and add the cost to the final invoice

Answer

Changes are not permitted once a home improvement contract is signed