Business and Law Flashcards
1
Q
What must happen if a complaint is brought against a contractor and it is settled during an informal conference?
A
The Department and parties involved must agree on the settlement.
2
Q
A licensed builder shall report minor changes of his license within…
A
30 days
3
Q
Can an employer deduct wages from an employee to cover workers comp.?
A
No, never…
4
Q
A non-licensed builder may file a lien on a dwelling they themselves built
A
Never…you can’t do that…
5
Q
If the Board fails to determine the penalties within the set time limits, the ________ may determine the penalty.
A
Director
6
Q
From the choices below, select the best definition of a change order.
A
Provides the contractual means for making changes to original plans and specifications.
7
Q
A cost-plus contract is defined as…
A
Direct costs plus an additional fee for the contractor’s services.
8
Q
The Director is appointed by the
A
Governor
9
Q
From the choices below, select the definition that best describes “place of business”.
A
Actual established physical location.
10
Q
The Department shall acknowledge receipt of a complaint to the complainant within
A
15 days
11
Q
A contractor who with intent to defraud, upon conviction, shall be punished by a fine of
A
Not less than $100.00 nor more than $5,000.00 and/or not less than 6 months or more than 3 years in the state prison
12
Q
Issued when the subcontractor is not paid
A
Claim of lien
13
Q
What tax form does a builder send to his sub contractors?
A
1099
14
Q
Business tax information should be kept for a minimum of
A
7 years…
15
Q
Books and records of a builder are open to inspection by
A
Department of Licensing & Regulatory Affairs
16
Q
General public means anyone
A
18 years or older, who resides in Michigan, and other than a licensed occupation
17
Q
What is prepared by the Department or Department of the Attorney General which discloses evidence of a violation of Act 299?
A
Formal Complaint
18
Q
Minors are required to have a ___________ in order to be employed, unless specifically exempted.
A
Work Permit
19
Q
The Board sets minimal standards of
A
Acceptable practice
20
Q
Respondent is
A
the person whom a complaint has been filed against
21
Q
Per EPA 747-B-99-004, the lead pre renovation rule (PRE) applies to residential homes built
A
before 1978
22
Q
If death results from an injury, the employer without worker’s compensation insurance shall pay reasonable expenses of the funeral and burial. Costs shall not exceed ____________.
A
$6,000
23
Q
A customer should be able to assume that plumbing installed by your company will not leak even if there is no specific warranty which covers this in the contract. What is this type of warranty called?
A
Implied
24
Q
The investigative unit shall report the status of a complaint to the director within
A
30 days
25
Per the EPA lead pre renovation rule (PRE), if a contractor mails the lead pamphlet it must be done ______ days before renovation begins and documented with a certificate of mailing.
7 days
26
After receipt of the Administrative Law Hearings examiners report, the Board shall assess penalties within
60 days
27
A person who has failed to renew his license within 3 years may
Pay all the late and registration fees
28
The Board shall meet no less than _____ times per year.
2
29
All requirements for testing must be completed within
1 year of filing the builders license application
30
Definition of control & possession
Physical dominion
31
An unlicensed residential contractor who violates Act 299 for the first time is guilty of a misdemeanor punishable by
A fine not less than $5000 or more than $25,000 or not more than 1 year in jail or both.
32
When would an employee not be covered by worker's compensation?
Traveling from home to work.
33
A requirement that all contracts of a licensee be reviewed by an attorney is an example of a
Limitation
34
A builders license shall be displayed
At the place of business
35
Lead free means solder and flux containing
Less than 0.2% lead
36
B.F.D. means
Barrier Free Design
37
Combining money from several jobs to finish an existing job is an example of
Commingling
38
What is required of a non-resident of Michigan to obtain a builders license?
Passing the Michigan builders exam and filing an irrevocable consent to service
39
A construction company must file his estimated income taxes
Quarterly
40
The Board is made up of
9 members
41
A newly constructed building cannot be used or occupied in whole or part without
Certificate of Occupancy
42
You are beginning construction on a new home for a customer. The bank will issue 4 equal payments as certain parts of the project are completed. What are these periodic payments called?
Progress payment or draw.
43
Personal tax records should be kept for a minimum of
3 years
44
A sole proprietor is personally liable for what debts?
Liable for all debts of the business.
45
According to Federal tax law, what is the last date employers can provide a W-2 to an employee?
Jan 31
46
The Board is made up of
6 licensed members and 3 from the general public
47
A Notice of Furnishing is delivered to the _________________ by the supplier.
General contractor/owner
48
A.D.A. requirements do not apply to
Residential private apartments and homes
49
An employer shall notify MIOSHA within _____ of a fatality.
8 hours
50
In reference to the occupational code, the word "Department" refers to
Licensing & regulatory Affairs (LARA)
51
Who is responsible for notifying the department of a licensee's change of address?
Licensee
52
Who issues subpoenas?
Circuit Court
53
In reference to workers compensation for death resulting from personal injury, the dependents who were wholly dependent upon the employees earnings shall receive 80% of the employees after tax weekly wage for a period of ___________.
500 weeks
54
Per Act 230, stairwell geometry with 1" nosing is
Maximum riser 8 1/4" minimum tread 9"
55
The Department has ______________ over the files from each Board
Physical dominion
56
Per the home solicitation sales Act 227, which of the following is prohibited?
Solicitation with a recorded message
57
In reference to the A.D.A., civil penalties may not exceed _________ for a first violation.
55,000
58
A building permit shall be granted in whole or in part or denied within
10 business days
59
From the choices below, select the best definition of "liquidated damages".
Financial penalty for default of delays in project completion.
60
A builder who is working under a contract which is _________ must be licensed.
$600.00 or more
61
After a claim of lien has been recorded, what is the maximum length of time in which proceeding for the enforcement of the lien must be started?
1 year.
62
A licensed builder shall report major changes of his or her license within
10 days
63
A licensed builder shall reply to a complaint within
15 days
64
Which of the following Acts specifically prohibits discrimination practices and policies?
Act 453, Elliott- Larsen
65
At a hearing, the respondent may be represented by
an attorney
66
The Home Solicitation Sales Act 227 requires a written contract if the dollar amount is more than _______.
$25.00
67
________________ hears cases related to Act 317, Section 847.
Workers Compensation Magistrate
68
A 1099 form must be given to subcontractors by what date?
Jan 31
69
Money paid to a builder by a purchaser is considered to be
Trust Fund
70
A requirement that all contracts of a licensee be reviewed by an attorney is an example of a
Limitation
71
Issued when the subcontractor is not paid
Claim of Lien
72
In reference to a lien, who must be named in a lawsuit submitted by a sub-contractor?
Owner & General Contractor
73
The party responsible for providing a "Notice of Furnishing" within 20 days of the first delivery of goods or services is the _________.
subcontractor.
74
An employer's "willful" violation of MIOSHA regulations may result in a fine up to
$70,000.00
75
The maximum fine per serious violation of MIOSHA requirement resulting in an employee's death is
$10,000.00
76
The _________ applies for the salespersons license.
licensed residential builder
77
The Residential Builders license expires every 3 years on
May 31
78
As part of the Energy Conservation Provisions, what is prohibited on a clothes dryer or a gas cooking stove with electrical supply?
Pilot light
79
Who hears the contested case?
Administrative Law Hearing Examiner
80
The Department and the __________ may remove a limitation.
Board
81
After notice by the Department, financial statements of a licensee shall be submitted within
30 days
82
Inspections are made between what hours
8 A.M. to 6 P.M.
83
According to the U.S. Department of Justice Civil Rights Division, A.D.A. refers to:
Americans with Disabilities Act
84
Submitted by contractor to owner when payment is due
Sworn statement
85
The first notice issued in reference to a lien is
Notice of Commencement
86
The Board's duties include
Interpretation of licensure requirements
87
The _________ of a corporation is responsible for full compliance to codes.
qualifying officer
88
A person who violates Act 299 is subject to a civil fine not to exceed
$10,000
89
A lien is filed to
Recover financial damages by General Contractors & suppliers.
90
The Director is appointed with the advice and consent of the
Senate
91
The director may impose a limitation on a license if the board fails to approve nor disapproves the imposition of a limitation within
60 days
92
Who approves the context and makeup of the builders test
Department and Board
93
The _______________ appoints the members of the Board
Governor
94
The Department shall charge a _________ late fee for failing to renew a license on time.
$20.00
95
A person must have a Salesperson's license to sell jobs if
his or her sales are more than occasional.
96
A licensed residential builder must maintain at least one place of business in
The State of Michigan
97
A salesperson may work for
One builder
98
A complaint filed against a licensed builder must be within _______ of job completion.
18 months
99
A salesperson shall turn over money for a sale to their licensed builder
Immediately
100
A builder may use funds from one project for another project
Never
101
The license of a salesperson shall be ________ when that salesperson transfers employment
sent to the Department
102
A builder must furnish his/her _________ to the advertising media.
builder's license I.D. #
103
A builder is required to deliver only _________ to his/her customer.
All agreements, plans and specs
104
Changes in agreements shall be
Signed and in writing
105
Per the occupational code, the builder is liable for his construction project up to
18 months after completion, occupancy or purchase, whichever occurs latest
106
What is the purpose of an investigative hearing?
To determine if there is sufficient cause for the complaint
107
When a salesperson terminates employment the salesperson returns his/her _______.
I.D. card to the Department of Licensing & regulatory Affairs within 5 days of termination
108
A builder who falls under the requirements of the Workers Compensation Act has been having financial difficulties. His insurance policy has expired and he has not carried insurance for 21 days (3 weeks). What is the total number of separate offenses which could be imposed against the builder?
21
109
A license is required by a contractor to perform all of the following except
subcontract work for a licensed builder.
110
What is the first step in the scheduling process?
Identify tasks that need to be performed and the time needed to perform them.
111
How many months does a contractor have after filing a claim of lien to bring suit to enforce the lien?
12 months
112
A licensed contractor violates occupational code. The Board has the authority to impose all of the following penalties with the exception of?
Imprisonment for up to 1 year.
113
After a claim of lien has been recorded, what is the maximum length of time in which proceeding for the enforcement of the lien must be started?
1 year.
114
A builder shall be notified of penalties or action taken against him by the Board
only after the builder or contractor has had an opportunity for a conference or hearing.
115
A formal complaint is filed against a builder for financial mismanagement. Select the organization responsible for investigating the complaint.
Builders Investigative Unit.
116
You have acted as a subcontractor on a new home and have provided the rough framing. From the last day you provided labor on the home, how long do you have to register a claim of lien?
90 days.
117
The Department is investigating a complaint of violation. The contractor is called in for an informal conference to discuss the complaint against the contractor. At the conclusion of the conference the Department finds it is not satisfied with the contractors response. What would be the next step taken by the Department?
Formal hearing
118
Two employees on a job site are injured because they intentionally disregarded the safety procedures of the company. What percentage of Workers Comp benefits can each of the employees collect?
0%
119
Board of Appeals means
Construction Board of Appeals
120
The director of the construction code commission sole statutory authority is to
Enforce building codes
121
A performance evaluation pertains to
Performing an evaluation survey of a local enforcing agency
122
The construction code is updated every
3 years
123
A pre manufactured unit must have a ________________ before being delivered and installed on site.
Certificate of Acceptability
124
____________ must be maintained for each hazardous chemical in a work place or job site.
Safety data sheet
125
A document meaning no debts are owning
Full unconditional waiver
126
After filing a lien at the county Register of Deeds, subcontractors, suppliers, and laborers must notify the homeowner either in person or certified mail within ______ days.
15 days
127
Subcontractors, suppliers and laborers have up to ________ to file a lawsuit to enforce the lien in court.
1 year
128
Laborers send Notice of Furnishing within ________ after wages are due.
30 days
129
A private employer having ____ or more employees at any one time, or employs one or more workers for ________ or more hours per week for ______ or more weeks, the employer is subject to the Workers Comp. Act.
3, 35, 13
130
If a corporation makes over $350,000 in gross receipts, they are required to file
Michigan Business tax
131
An employer who fails to comply with the provisions of Act 317, Section 611 is guilty of a misdemeanor and may be fined not more than ________, or imprisoned for not more than _________, or both. Each day's failure to comply is a separate offense.
$1,000 / 6 months
132
A telephone solicitor who misrepresents himself or a product is guilty of a misdemeanor punishable by imprisonment for not more than _________ months or a fine of not more than _________, or both.
6 / $500
133
The buyer has the right to cancel a home solicitation sales agreement after signing it ______________.
Until midnight of the third business day
134
Per Act 174 (1962 excerpt) Section 2201.1, a contract for the sale of goods for the price of $1,000.00 or more is not enforceable unless it is a _________.
Written and signed contract
135
According to the A.D.A. requirements, after July 26, 1994, the A.D.A. applied to employers with ______ or more employees.
15
136
Per the A.D.A., when is drug screening allowed?
Anytime
137
As of January 1st, 2020 the minimum training hourly wage of an employee shall be ________ per hour.
$4.25
138
Minors cannot exceed _______ hours of combined school and work per week.
48
139
From the choices below select the best definition of "complaint".
Oral or written grievance filed by the Department.
140
A homeowner hires you to build an addition on his home. What must be done after completing a sales contract in order for the contract to be valid?
Deliver to the customer fully executed copies of the agreement.
