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A series of practice questions for the maryland home improvement salesperson exam. It covers various aspects of the home improvement law, including licensing requirements, contract regulations, deposit limits, cancellation rights, and disciplinary actions. The questions are multiple-choice format, offering a comprehensive review of key concepts and regulations related to home improvement sales in maryland.
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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,
$
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
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,
$1,
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
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
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
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. $
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
REPAIRS TO AN HVAC SYSTEM
A local county or municipality may
A. Regulate the quality of home improvements
B. Issue home improvement licenses
C. Override state regulations
D. None of the above
REGULATE THE QUALITY OF HOME IMPROVEMENTS
The office of the Home Improvement Commission is located in
A. Annapolis
B. Baltimore
C. Rockville
D. Frederick
BALTIMORE
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
EXECUTIVE DIRECTOR OF THE COMMISSION
Who investigates complaints against Home Improvement licensees?
A. Local Police
B. Investigative staff of the Home Improvement Commission
C. State Attorney's Office
D. Federal Trade Commission
INVESTIGATIVE STAFF OF THE HOME IMPROVEMENT COMMISSION
All of the following activities are grounds for disciplinary action against a licensee EXCEPT
A. Issuing a promissory note for the home improvement
B. Failing to complete work on time
C. Misrepresenting the cost of materials
D. Violating building codes
ISSUING A PROMISSORY NOTE FOR THE HOME IMPROVEMENT
A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is
A. $
B. $
C. $
D. Nothing. No service fee may be collected
NOTHING. NO SERVICE FEE MAY BE COLLECTED
C. No license is required
D. Business License
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
FENCE CONTRACTOR
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,
$1,
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
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
PURCHASE PRICE
What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?
A. $
B. $
C. $
D. $1,
$
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
THE CONTRACTOR IS NOT PERMITTED TO COMPENSATE THE HOMEOWNER FOR REFERRALS
A Home Improvement Contractor is a person who offers to
D. 5 years
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
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
EXECUTIVE DIRECTOR OF THE COMMISSION
The office of the Home Improvement Commission is located in
A. Annapolis
B. Baltimore
C. Rockville
D. Frederick
BALTIMORE
A local county or municipality may
A. Regulate the quality of home improvements
B. Issue Home Improvement licenses
C. Overrule the Home Improvement Commission
D. None of the above
REGULATE THE QUALITY OF HOME IMPROVEMENTS
All of the following are considered home improvements EXCEPT
A. Repairs to an HVAC system
B. Painting a room
C. Installing a new roof
D. Building a deck
REPAIRS TO AN HVAC SYSTEM
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
1 MONTH
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
A license that is NOT renewed will
A. Be suspended
B. Expire
C. Be put on hold
D. Be transferred to another individual
EXPIRE
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 application
NOT BEING A MARYLAND RESIDENT
A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is
A. $
B. $
C. $
D. Nothing. No service fee may be collected
NOTHING. NO SERVICE FEE MAY BE COLLECTED
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
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
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
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
PERFORM REPAIRS FOR A HOMEOWNER
A) Only the contractor
B) Only the homeowner
C) Both the contractor and homeowner
D) The salesperson
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
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?
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
Answer: A permit must include the license number of a licensed contractor as per Section 8-504.
Code Violation Notification: Per Section 8-505, who is responsible for notifying the Commission of a contractor's failure to correct a building code violation?
A) The homeowner
B) The salesperson
C) The county or municipal corporation
D) The contractor themselves
Answer: The county or municipal corporation is responsible for notifying the Commission according to Section 8-505.
Unlicensed Activity Penalty: According to Section 8-601, what is the penalty for a first conviction of acting as a contractor without a license?
A) Fine not exceeding $
B) Fine not exceeding $1,
C) Imprisonment not exceeding 3 months
D) Imprisonment not exceeding 6 months
Answer: The penalty for a first conviction is a fine not exceeding $1,000 according to Section 8-601.
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
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
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
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
Answer: The contractor is required to notify the Commission of an employment or other contractual relationship with a salesperson according to Section 8-613.
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
B) The name under which they are licensed
C) Their nickname
D) Their social media handle
Answer: A person can act as a contractor or sell a home improvement only under the name under which they are licensed as per Section 8-614.;
Advertising License Number: Per Section 8-615, what must be stated in an advertisement if a person is licensed under Title 8?