FREE MHIC Basic Questions and Answers

What is a requirement of a home improvement contract in the following choices?

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

When the property owner will do the house improvements.

Before work starts, the customer receives a signed copy of the contract.

The cost of replacing substandard materials

Correct! Wrong!

What is the maximum deposit a contractor may ask to install a deck attached to a house if the entire contract value is $5,400?

$3,800

$840

$2,400

$1,800

Correct! Wrong!

A garbage can was ordered and built by a home improvement contractor. The next winter, the roof failed to withstand the snow weight, resulting in damage to both the roof and the owner's automobile. The contractor restored the roof but refused to pay for automobile repairs. How much may the property owner recover from the home improvement guaranty fund for automobile repairs?

Nothing

Total of car's damage

Something

21 Days

Correct! Wrong!

An example of non-door-to-door sales

Before beginning work, the customer receives a signed copy of the contract.

Sale of insurance to a homeowner in his house

Sale of a $300 investment advising package by credit card transaction via the internet

A roofing contractor was contacted to repair a leak in a property's roof. Sells the owner a contract for a whole new roof.

Correct! Wrong!

What is the first assessment for each home improvement contractor's guarantee fund?

$100

$50,000

$150

$250

Correct! Wrong!

What are the reasons for canceling a home improvement contractor's license?

sale of insurance to a homeowner in his house

failure to submit information on changes in ownership of the firm

a list and description of the materials to be utilized in the project

within 10 business days of the seller receiving the cancellation notification

Correct! Wrong!

A home improvement contractor is offering an affordable price on hot tubs. His advertisements just show the basic price of the tub. What is required in his advertisement?

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

A disclaimer indicating that any accessories shown or that may be required for operation are not included in the stated price.

Within 10 business days of the seller receiving the cancellation notification.

None, no legal requirement.

Correct! Wrong!

A customer cancelled within the specified time frame, and the vendor reimbursed the deposit. How does the seller reclaim possession of the merchandise?

Within 10 business days of the seller receiving the cancellation notification.

A statement indicating that the quoted price does not include the accessories displayed or that may be required for operation.

The seller must reclaim it at his own expense within 20 days from the date of cancellation.

A $5,000 fine and imprisonment of up to three years for the contractor and the owner.

Correct! Wrong!

John Jones and Company, a home improvement contractor, is changing his firm's name to John Jones and Son. When should he tell the Home Improvement Commission?

Within 10 days of the change

The duration of the current license

Within 8 days of the change

Within 3 days of the change

Correct! Wrong!

Who is necessary to receive a Maryland home improvement license?

A contractor who works in Maryland but does not have his or her primary business location there.

A list and description of the materials to be utilized in the project.

Show proof of general liability insurance.

The letters MHIC# and his license number in three-inch high letters on both sides of the car.

Correct! Wrong!

What is not necessary in an advertisement promoting a specific home renovation at a temporary reduced cost?

The former employer

A guaranty or warranty

His name and license number

None, no legal requirement

Correct! Wrong!