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MARYLAND HOME IMPROVEMENT TEST QUESTIONS
WITH COMPLETE VERIFIED SOLUTION 100%
“What is the maximum deposit a contractor can accept for a project with a total contract price of $1,500? A. $ B. $ C. $
D. $1,500 - CORRECT ANSWER $500"
"A person who is convicted of acting without a required Home Improvement license MUST wait a MINIMUM of what time period before being issued a license? A. 6 months B. 1 year C. 2 years
D. 5 years - CORRECT ANSWER 1 YEAR"
"The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days
D. 20 days - CORRECT ANSWER 10 DAYS"
"A renewal notice MUST be mailed by the Commission within how many months of the license expiration date? A. 1 month B. 2 months C. 3 months
D. 6 months - CORRECT ANSWER 1 MONTH"
"All of the following are considered home improvements EXCEPT A. Repairs to an HVAC system B. Installing a new roof C. Painting the exterior of a house
D. Replacing windows - CORRECT ANSWER REPAIRS TO AN HVAC SYSTEM"
"The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for interest. What is the purchase price for this contract? A. $1,
B. $1,
C. $1,
D. $1,175 - CORRECT ANSWER $1,175"
"A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until A. Midnight on Sunday, September 23 B. Midnight on Monday, September 24 C. Noon on Tuesday, September 25
D. Noon on Thursday, September 27 - CORRECT ANSWER NOON ON THURSDAY,
SEPTEMBER 27"
"All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the A. Name of the seller B. Purchase price C. Date of the transaction
D. Latest cancellation date - CORRECT ANSWER PURCHASE PRICE"
"What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? A. $ B. $ C. $
D. $1,500 - CORRECT ANSWER $500"
"What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $ B. $ C. $1,
D. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT
ANSWER THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR
REFERRALS"
"The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision within A. 30 days after the hearing B. 60 days after the hearing C. 90 days after the hearing
D. 120 days after the hearing - CORRECT ANSWER 60 DAYS AFTER THE HEARING"
"An applicant was denied a license after a hearing. When may the applicant reapply?
B) $2,
C) $5,
D) $10,000 - CORRECT ANSWER Answer: The maximum fine for accepting a false
completion certificate is $5,000 according to Section 8-602." "Contract Abandonment: According to Section 8-605, what is a contractor prohibited from doing regarding a home improvement contract? A) Abandoning or failing to perform the contract B) Completing the contract ahead of schedule C) Using high-quality materials
D) Hiring additional labor to complete the project - CORRECT ANSWER Answer: A
contractor is prohibited from abandoning or failing to perform the contract as per Section 8-605." "Debt Limitation: Per Section 8-609, what is prohibited concerning the preparation or acceptance of a mortgage for a home improvement? A) Stating a lesser monetary obligation than the consideration B) Stating an equal monetary obligation to the consideration C) Stating a greater monetary obligation than the consideration
D) Stating the monetary obligation in a foreign currency - CORRECT ANSWER Answer: It is
prohibited to state a greater monetary obligation than the consideration for the home improvement according to Section 8-609." "Advertising Regulations: According to Section 8-610, which of the following advertisements would NOT be considered false, deceptive, or misleading? A) An advertisement that complies with Federal Trade Commission regulations B) An advertisement that offers a service the person does not intend to perform C) An advertisement that states a price the person does not intend to honor
D) An advertisement that directly contradicts the services offered - CORRECT ANSWER
Answer: An advertisement that complies with Federal Trade Commission regulations would not be considered false, deceptive, or misleading according to Section 8-610." "Violation of Laws: Per Section 8-611, which of the following laws is a licensee NOT prohibited from violating? A) Building law of the State B) Safety or labor law of the State C) The Maryland Workers' Compensation Act
D) The Maryland Ice Cream Flavor Act - CORRECT ANSWER Answer: A licensee is not
prohibited from violating the Maryland Ice Cream Flavor Act according to Section 8-611."
"Doing Business With Unlicensed Person: According to Section 8-612, can a person perform or sell a home improvement with someone who is not licensed? A) Yes B) No C) Only if the unlicensed person is a family member
D) Only if the homeowner agrees - CORRECT ANSWER Answer: A person cannot perform or
sell a home improvement with someone who is not licensed as per Section 8-612." "Notification of Employment: Per Section 8-613, who is required to notify the Commission of an employment or other contractual relationship between a contractor and a salesperson? A) The salesperson B) The homeowner C) The contractor
D) The Commission itself - CORRECT ANSWER Answer: The contractor is required to notify
the Commission of an employment or other contractual relationship with a salesperson according to Section 8-613." "Fraudulent Actions: Per Section 8-608, what is a person prohibited from committing when executing a home improvement contract? A) Fraud B) A minor mistake C) A clerical error
D) A true statement - CORRECT ANSWER Answer: A person is prohibited from committing
fraud when executing a home improvement contract according to Section 8-608." "Advertising Without Intent: According to Section 8-610, is it permissible to advertise a home improvement service that the person does not intend to perform? A) Yes B) No C) Only if it's a limited-time offer
D) Only if it's a free service - CORRECT ANSWER Answer: It is not permissible to advertise a
home improvement service that the person does not intend to perform according to Section 8- 610.;"
A Home Improvement Contractor is a person who offers to - CORRECT ANSWER perform
repairs for a homeowner."
"The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for
interest. What is the purchase price for this contract? - CORRECT ANSWER $1,175."
"A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract anytime up until a) midnight on Sunday, September 23. b) midnight on Monday, September 24. c) noon on Tuesday, September 25.
d) noon on Thursday, September 27. - CORRECT ANSWER noon on Thursday, September 27."
"All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the a) name of the seller b) purchase price c) date of the transaction
d) latest cancellation date - CORRECT ANSWER purchase price."
When must a contractor's home improvement license be renewed? - CORRECT ANSWER By
June 30th- every 2 years" "What is the initial assessment for the home improvement guaranty fund of every home
improvement contractor? - CORRECT ANSWER $100"
"Requirement of a home improvement contract - CORRECT ANSWER The customer is given
a signed copy of the contract before work begins" "What is the maximum deposit a contractor may require to build a deck attached to a house if the
total contract if for $5400 - CORRECT ANSWER $1800"
"A contractor specializes in building decks. What is the most important item in his advertising? -
CORRECT ANSWER His name and license number"
"An applicant for or holder of a subcontractor license must have general liability insurance of not
less than what amount? - CORRECT ANSWER $50,000"
"What is the license application fee for a salesperson license? - CORRECT ANSWER $120"
"Which person is required to obtain a Maryland home improvement license? - CORRECT
ANSWER A contractor who works in Maryland but whos principal place of business is not in
Maryland." "A home improvement contractor has contracted for and constructed a garbage. The roof failed to support the snow load the following winter, damaging both rood and the owner car. The contractor repaired the roof, but refuses to pay for repairs to the car. How much may the property
owner recover from the home improvement guaranty fund for repairs to his car? - CORRECT
ANSWER Nothing"
"A successful salesperson for a single contractor wants to expand his income by representing
additional contractors. How many additional contractors may he represent. - CORRECT
ANSWER 1"
"The Home Improvement Commission has issued a proposed order to pay a claim of $2, against a contractor, with a copy delivered to the contractor. The contractor is required to
respond within what period of time if he wishes to appeal or contest the award. - CORRECT
ANSWER 21 days"
"A salesperson currently working for two contractors resigns from one of his employers to accept employment with another contractor. Who is responsible for notifying the Maryland home
improvement commission of his resignation? - CORRECT ANSWER The former employer"
"When may a permit for a home improvement be issued without including the license number of
a license contractor? - CORRECT ANSWER When the home improvement will be performed
by the property owner" "A contractor offers employment to a telephone salesperson. Which of the following must
accompany the salespersons application for a license. - CORRECT ANSWER No license is
required"
"What is required as part of a Home Improvement contract? - CORRECT ANSWER A list and
description of materials to be used on the project" "The property owner may obtain payments for loss under the Home Improvement guaranty fund
for? - CORRECT ANSWER The cost of replacing substandard materials"
"What is grounds for revoking a Home Improvement contractors license? - CORRECT
ANSWER failing to report information concerning changes in ownership of the business"
4. alter plumbing lines to accommodate new appliances - CORRECT ANSWER 1. perform
repairs for a homeowner" "What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?
- $
- $
- $
4. $1,500 - CORRECT ANSWER 2. $500"
"What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor?
- $
- $1,
- 10% of the contract amount
4. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT
ANSWER 4. The contractor is NOT permitted to compensate the homeowner for referrals"
"All of the following are exempt from licensing under the Home Improvement Law EXCEPT:
- licensed architect
- fence contractor
- salesperson for a licensed plumbing contractor
4. Licensed security systems technician - CORRECT ANSWER 2. fence contractor"
"An applicant was denied a license after a hearing. When may the applicant reapply?
- 30 days
- 60 days
- 6 months
4. 1 year - CORRECT ANSWER 3. 6 months"
"All of the following are grounds for denial of licensure EXCEPT:
- failing to give all required application information
- not being a Maryland resident
- conviction of a felony
4. fraud - CORRECT ANSWER 2. not being a Maryland resident"
"A renewal notice MUST be mailed by the Commission within how many months of the license expiration date?
- 1 month
- 2 months
- 3 months
4. 6 months - CORRECT ANSWER 1. 1 month"
"A license that is NOT renewed will:
- expire
- become inactive
- be revoked
4. be suspended - CORRECT ANSWER 1. expire"
"All of the following Commission records can be inspected by the public during normal office hours EXCEPT:
- licenses issued
- expired, suspended, or revoked licenses
- financial records or each licensee
4. contractors represented by each licensed salesperson - CORRECT ANSWER 3. financial
records or each licensee" "All of the following are considered home improvements EXCEPT:
- landscaping
- repairs to a fallout shelter
- installation of an awning
4. repairs to an HVAC system - CORRECT ANSWER 4. repairs to an HVAC system"
"A local county or municipality may
- require a person to get authorization to perform or sell a home improvement
- establish qualifications for a home improvement business
- regulate the quality of home improvements
4. issue home improvement license - CORRECT ANSWER 3. regulate the quality of home
improvements" "The office of the Home Improvement Commission is located in
- Baltimore
"Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract?
- Columbus Day
- Veteran's Day
- Election Day
4. Washington's Birthday - CORRECT ANSWER 3. Election Day"
"All door-to-door sales contracts MUST include:
- the name and address of the buyer
- the name and address of the seller
- a promissory note
4. copies of all product brochures - CORRECT ANSWER 2. the name and address of the seller"
"The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for interest. What is the purchase price for this contract?
- $1,
- $1,
- $1,
4. $1,175 - CORRECT ANSWER 4. $1,175"
"A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract any time up until:
- Midnight on Sunday, September 23
- Midnight on Monday, September 24
- Noon on Tuesday, September 25
4. Noon on Thursday, September 27 - CORRECT ANSWER 4. Noon on Thursday, September
"All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the:
- name of the seller
- purchase price
- date of the transaction
4. Latest cancellation date - CORRECT ANSWER 2. purchase price"
"The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision within A. 30 days after the hearing B. 60 days after the hearing C. 90 days after the hearing
D. 120 days after the hearing - CORRECT ANSWER 60 DAYS AFTER THE HEARING"
"What is the maximum fine for willfully violating any provision of the Maryland Door-to-Door Sales Act? A. $ B. $1, C. $2,
D. $5,000 - CORRECT ANSWER $1,000"
"What is the maximum imprisonment for willfully violating any provision of the Maryland Door- to-Door Sales Act? A. 6 months B. 1 year C. 2 years
D. 5 years - CORRECT ANSWER 1 YEAR"
"Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract? A. Columbus Day B. Veteran's Day C. Election Day
D. Washington's Birthday - CORRECT ANSWER ELECTION DAY"
"A home improvement contract must contain the approximate dates when the performance of the home improvement will begin and when it will be A. Partially completed B. Substantially completed C. Fully completed
D. Inspected - CORRECT ANSWER SUBSTANTIALLY COMPLETED"
"What is the maximum amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $ B. $ C. $
D. Nothing. No service fee may be collected - CORRECT ANSWER NOTHING. NO SERVICE
FEE MAY BE COLLECTED"
"All of the following are grounds for denial of licensure EXCEPT A. Criminal record B. Not being a Maryland resident C. Previous license revocation
D. Fraudulent practices - CORRECT ANSWER NOT BEING A MARYLAND RESIDENT"
"A license that is NOT renewed will A. Be suspended B. Expire C. Be revoked
D. Be transferred - CORRECT ANSWER EXPIRE"
"All of the following Commission records can be inspected by the public during normal office hours EXCEPT A. Financial records of each licensee B. Meeting minutes C. Licensee list
D. Disciplinary actions - CORRECT ANSWER FINANCIAL RECORDS OF EACH LICENSEE"
"What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? A. Salesperson License B. Contractor License C. No license is required
D. Business License - CORRECT ANSWER NO LICENSE IS REQUIRED"
"All of the following are exempt from licensing under the Home Improvement Law EXCEPT a A. Plumber B. Electrician C. Fence contractor
D. Architect - CORRECT ANSWER FENCE CONTRACTOR"
"A Home Improvement Contractor is a person who offers to A. Perform repairs for a homeowner B. Sell home improvement goods C. Provide consultation for home improvement
D. All of the above - CORRECT ANSWER PERFORM REPAIRS FOR A HOMEOWNER"
"All door-to-door sales contracts MUST include
A. The name and address of the seller B. The buyer's social security number C. A detailed list of materials to be used
D. The buyer's bank account details - CORRECT ANSWER THE NAME AND ADDRESS OF THE
SELLER"
"The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days
D. 30 days - CORRECT ANSWER 10 DAYS"
"A person who is convicted of acting without a required Home Improvement license MUST wait a MINIMUM of what time period before being issued a license? A. 6 months B. 1 year C. 2 years
D. 5 years - CORRECT ANSWER 1 YEAR"
"Who investigates complaints against Home Improvement licensees? A. Local Police B. Investigative staff of the Home Improvement Commission C. Federal Trade Commission
D. Better Business Bureau - CORRECT ANSWER INVESTIGATIVE STAFF OF THE HOME
IMPROVEMENT COMMISSION"
"The official recordkeeper of the Home Improvement Commission shall be the A. Secretary of the Commission B. Executive Director of the Commission C. Chairman of the Commission
D. Treasurer of the Commission - CORRECT ANSWER EXECUTIVE DIRECTOR OF THE
COMMISSION"
"The office of the Home Improvement Commission is located in A. Annapolis B. Baltimore C. Rockville
D. Frederick - CORRECT ANSWER BALTIMORE"
"A local county or municipality may A. Regulate the quality of home improvements
D. Business license - CORRECT ANSWER NO LICENSE IS REQUIRED"
"All of the following are exempt from licensing under the Home Improvement Law EXCEPT a A. Fence contractor B. Plumber C. Electrician
D. HVAC technician - CORRECT ANSWER FENCE CONTRACTOR"
"What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? A. $ B. $ C. $
D. The contractor is NOT permitted to compensate the homeowner for referrals - CORRECT
ANSWER THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR
REFERRALS"
"A Home Improvement Contractor is a person who offers to A. Perform repairs for a homeowner B. Sell home improvement goods C. Provide consultation for home improvement
D. All of the above - CORRECT ANSWER PERFORM REPAIRS FOR A HOMEOWNER"
"All door-to-door sales contracts MUST include A. The name and address of the seller B. The buyer's social security number C. A detailed list of materials to be used
D. The buyer's bank account details - CORRECT ANSWER THE NAME AND ADDRESS OF THE
SELLER"
"The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee? A. 5 days B. 10 days C. 15 days
D. 30 days - CORRECT ANSWER 10 DAYS;"
"What Must Be in Writing?: According to Section 8-501, what must be in writing for a home improvement contract? A) Verbal agreement B) The contract itself
C) A handshake
D) A text message - CORRECT ANSWER Answer: The contract itself must be in writing
according to Section 8-501." "Who Can Sign a Contract?: Per Section 8-501, who needs to sign the home improvement contract? A) Only the contractor B) Only the homeowner C) Both the contractor and homeowner
D) The salesperson - CORRECT ANSWER Answer: Both the contractor and homeowner need
to sign the home improvement contract as per Section 8-501." "Salesperson Compensation: According to Section 8-502, from whom can a salesperson accept compensation? A) Any contractor B) The contractor they represent C) The homeowner
D) Any third party - CORRECT ANSWER Answer: A salesperson can accept compensation
only from the contractor they represent according to Section 8-502." "Inducement Limitations: Per Section 8-503, what is the maximum value of a gift a salesperson can offer to a prospective customer? A) $ B) $ C) $
D) $100 - CORRECT ANSWER Answer: The maximum value of a gift a salesperson can offer is
$25 according to Section 8-503." "Permit Requirements: According to Section 8-504, what must a permit for a home improvement include? A) The homeowner's social security number B) The license number of a licensed contractor C) The salesperson's favorite brand of tools
D) The estimated market value of the home - CORRECT ANSWER Answer: A permit must
include the license number of a licensed contractor as per Section 8-504." "Business Name: According to Section 8-614, under what name can a person act as a contractor or sell a home improvement? A) Any name they choose
