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.

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2
Q

A licensed builder shall report minor changes of his license within…

A

30 days

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3
Q

Can an employer deduct wages from an employee to cover workers comp.?

A

No, never…

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4
Q

A non-licensed builder may file a lien on a dwelling they themselves built

A

Never…you can’t do that…

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5
Q

If the Board fails to determine the penalties within the set time limits, the ________ may determine the penalty.

A

Director

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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.

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7
Q

A cost-plus contract is defined as…

A

Direct costs plus an additional fee for the contractor’s services.

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8
Q

The Director is appointed by the

A

Governor

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9
Q

From the choices below, select the definition that best describes “place of business”.

A

Actual established physical location.

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10
Q

The Department shall acknowledge receipt of a complaint to the complainant within

A

15 days

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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

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12
Q

Issued when the subcontractor is not paid

A

Claim of lien

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13
Q

What tax form does a builder send to his sub contractors?

A

1099

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14
Q

Business tax information should be kept for a minimum of

A

7 years…

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15
Q

Books and records of a builder are open to inspection by

A

Department of Licensing & Regulatory Affairs

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16
Q

General public means anyone

A

18 years or older, who resides in Michigan, and other than a licensed occupation

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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

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18
Q

Minors are required to have a ___________ in order to be employed, unless specifically exempted.

A

Work Permit

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19
Q

The Board sets minimal standards of

A

Acceptable practice

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20
Q

Respondent is

A

the person whom a complaint has been filed against

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21
Q

Per EPA 747-B-99-004, the lead pre renovation rule (PRE) applies to residential homes built

A

before 1978

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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

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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

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24
Q

The investigative unit shall report the status of a complaint to the director within

A

30 days

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25
Q

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.

A

7 days

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26
Q

After receipt of the Administrative Law Hearings examiners report, the Board shall assess penalties within

A

60 days

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27
Q

A person who has failed to renew his license within 3 years may

A

Pay all the late and registration fees

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28
Q

The Board shall meet no less than _____ times per year.

A

2

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29
Q

All requirements for testing must be completed within

A

1 year of filing the builders license application

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30
Q

Definition of control & possession

A

Physical dominion

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31
Q

An unlicensed residential contractor who violates Act 299 for the first time is guilty of a misdemeanor punishable by

A

A fine not less than $5000 or more than $25,000 or not more than 1 year in jail or both.

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32
Q

When would an employee not be covered by worker’s compensation?

A

Traveling from home to work.

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33
Q

A requirement that all contracts of a licensee be reviewed by an attorney is an example of a

A

Limitation

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34
Q

A builders license shall be displayed

A

At the place of business

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35
Q

Lead free means solder and flux containing

A

Less than 0.2% lead

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36
Q

B.F.D. means

A

Barrier Free Design

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37
Q

Combining money from several jobs to finish an existing job is an example of

A

Commingling

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38
Q

What is required of a non-resident of Michigan to obtain a builders license?

A

Passing the Michigan builders exam and filing an irrevocable consent to service

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39
Q

A construction company must file his estimated income taxes

A

Quarterly

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40
Q

The Board is made up of

A

9 members

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41
Q

A newly constructed building cannot be used or occupied in whole or part without

A

Certificate of Occupancy

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42
Q

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?

A

Progress payment or draw.

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43
Q

Personal tax records should be kept for a minimum of

A

3 years

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44
Q

A sole proprietor is personally liable for what debts?

A

Liable for all debts of the business.

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45
Q

According to Federal tax law, what is the last date employers can provide a W-2 to an employee?

A

Jan 31

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46
Q

The Board is made up of

A

6 licensed members and 3 from the general public

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47
Q

A Notice of Furnishing is delivered to the _________________ by the supplier.

A

General contractor/owner

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48
Q

A.D.A. requirements do not apply to

A

Residential private apartments and homes

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49
Q

An employer shall notify MIOSHA within _____ of a fatality.

A

8 hours

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50
Q

In reference to the occupational code, the word “Department” refers to

A

Licensing & regulatory Affairs (LARA)

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51
Q

Who is responsible for notifying the department of a licensee’s change of address?

A

Licensee

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52
Q

Who issues subpoenas?

A

Circuit Court

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53
Q

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 ___________.

A

500 weeks

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54
Q

Per Act 230, stairwell geometry with 1” nosing is

A

Maximum riser 8 1/4” minimum tread 9”

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55
Q

The Department has ______________ over the files from each Board

A

Physical dominion

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56
Q

Per the home solicitation sales Act 227, which of the following is prohibited?

A

Solicitation with a recorded message

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57
Q

In reference to the A.D.A., civil penalties may not exceed _________ for a first violation.

A

55,000

58
Q

A building permit shall be granted in whole or in part or denied within

A

10 business days

59
Q

From the choices below, select the best definition of “liquidated damages”.

A

Financial penalty for default of delays in project completion.

60
Q

A builder who is working under a contract which is _________ must be licensed.

A

$600.00 or more

61
Q

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?

A

1 year.

62
Q

A licensed builder shall report major changes of his or her license within

A

10 days

63
Q

A licensed builder shall reply to a complaint within

A

15 days

64
Q

Which of the following Acts specifically prohibits discrimination practices and policies?

A

Act 453, Elliott- Larsen

65
Q

At a hearing, the respondent may be represented by

A

an attorney

66
Q

The Home Solicitation Sales Act 227 requires a written contract if the dollar amount is more than _______.

A

$25.00

67
Q

________________ hears cases related to Act 317, Section 847.

A

Workers Compensation Magistrate

68
Q

A 1099 form must be given to subcontractors by what date?

A

Jan 31

69
Q

Money paid to a builder by a purchaser is considered to be

A

Trust Fund

70
Q

A requirement that all contracts of a licensee be reviewed by an attorney is an example of a

A

Limitation

71
Q

Issued when the subcontractor is not paid

A

Claim of Lien

72
Q

In reference to a lien, who must be named in a lawsuit submitted by a sub-contractor?

A

Owner & General Contractor

73
Q

The party responsible for providing a “Notice of Furnishing” within 20 days of the first delivery of goods or services is the _________.

A

subcontractor.

74
Q

An employer’s “willful” violation of MIOSHA regulations may result in a fine up to

A

$70,000.00

75
Q

The maximum fine per serious violation of MIOSHA requirement resulting in an employee’s death is

A

$10,000.00

76
Q

The _________ applies for the salespersons license.

A

licensed residential builder

77
Q

The Residential Builders license expires every 3 years on

A

May 31

78
Q

As part of the Energy Conservation Provisions, what is prohibited on a clothes dryer or a gas cooking stove with electrical supply?

A

Pilot light

79
Q

Who hears the contested case?

A

Administrative Law Hearing Examiner

80
Q

The Department and the __________ may remove a limitation.

A

Board

81
Q

After notice by the Department, financial statements of a licensee shall be submitted within

A

30 days

82
Q

Inspections are made between what hours

A

8 A.M. to 6 P.M.

83
Q

According to the U.S. Department of Justice Civil Rights Division, A.D.A. refers to:

A

Americans with Disabilities Act

84
Q

Submitted by contractor to owner when payment is due

A

Sworn statement

85
Q

The first notice issued in reference to a lien is

A

Notice of Commencement

86
Q

The Board’s duties include

A

Interpretation of licensure requirements

87
Q

The _________ of a corporation is responsible for full compliance to codes.

A

qualifying officer

88
Q

A person who violates Act 299 is subject to a civil fine not to exceed

A

$10,000

89
Q

A lien is filed to

A

Recover financial damages by General Contractors & suppliers.

90
Q

The Director is appointed with the advice and consent of the

A

Senate

91
Q

The director may impose a limitation on a license if the board fails to approve nor disapproves the imposition of a limitation within

A

60 days

92
Q

Who approves the context and makeup of the builders test

A

Department and Board

93
Q

The _______________ appoints the members of the Board

A

Governor

94
Q

The Department shall charge a _________ late fee for failing to renew a license on time.

A

$20.00

95
Q

A person must have a Salesperson’s license to sell jobs if

A

his or her sales are more than occasional.

96
Q

A licensed residential builder must maintain at least one place of business in

A

The State of Michigan

97
Q

A salesperson may work for

A

One builder

98
Q

A complaint filed against a licensed builder must be within _______ of job completion.

A

18 months

99
Q

A salesperson shall turn over money for a sale to their licensed builder

A

Immediately

100
Q

A builder may use funds from one project for another project

A

Never

101
Q

The license of a salesperson shall be ________ when that salesperson transfers employment

A

sent to the Department

102
Q

A builder must furnish his/her _________ to the advertising media.

A

builder’s license I.D. #

103
Q

A builder is required to deliver only _________ to his/her customer.

A

All agreements, plans and specs

104
Q

Changes in agreements shall be

A

Signed and in writing

105
Q

Per the occupational code, the builder is liable for his construction project up to

A

18 months after completion, occupancy or purchase, whichever occurs latest

106
Q

What is the purpose of an investigative hearing?

A

To determine if there is sufficient cause for the complaint

107
Q

When a salesperson terminates employment the salesperson returns his/her _______.

A

I.D. card to the Department of Licensing & regulatory Affairs within 5 days of termination

108
Q

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?

A

21

109
Q

A license is required by a contractor to perform all of the following except

A

subcontract work for a licensed builder.

110
Q

What is the first step in the scheduling process?

A

Identify tasks that need to be performed and the time needed to perform them.

111
Q

How many months does a contractor have after filing a claim of lien to bring suit to enforce the lien?

A

12 months

112
Q

A licensed contractor violates occupational code. The Board has the authority to impose all of the following penalties with the exception of?

A

Imprisonment for up to 1 year.

113
Q

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?

A

1 year.

114
Q

A builder shall be notified of penalties or action taken against him by the Board

A

only after the builder or contractor has had an opportunity for a conference or hearing.

115
Q

A formal complaint is filed against a builder for financial mismanagement. Select the organization responsible for investigating the complaint.

A

Builders Investigative Unit.

116
Q

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?

A

90 days.

117
Q

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?

A

Formal hearing

118
Q

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?

A

0%

119
Q

Board of Appeals means

A

Construction Board of Appeals

120
Q

The director of the construction code commission sole statutory authority is to

A

Enforce building codes

121
Q

A performance evaluation pertains to

A

Performing an evaluation survey of a local enforcing agency

122
Q

The construction code is updated every

A

3 years

123
Q

A pre manufactured unit must have a ________________ before being delivered and installed on site.

A

Certificate of Acceptability

124
Q

____________ must be maintained for each hazardous chemical in a work place or job site.

A

Safety data sheet

125
Q

A document meaning no debts are owning

A

Full unconditional waiver

126
Q

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.

A

15 days

127
Q

Subcontractors, suppliers and laborers have up to ________ to file a lawsuit to enforce the lien in court.

A

1 year

128
Q

Laborers send Notice of Furnishing within ________ after wages are due.

A

30 days

129
Q

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.

A

3, 35, 13

130
Q

If a corporation makes over $350,000 in gross receipts, they are required to file

A

Michigan Business tax

131
Q

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.

A

$1,000 / 6 months

132
Q

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.

A

6 / $500

133
Q

The buyer has the right to cancel a home solicitation sales agreement after signing it ______________.

A

Until midnight of the third business day

134
Q

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 _________.

A

Written and signed contract

135
Q

According to the A.D.A. requirements, after July 26, 1994, the A.D.A. applied to employers with ______ or more employees.

A

15

136
Q

Per the A.D.A., when is drug screening allowed?

A

Anytime

137
Q

As of January 1st, 2020 the minimum training hourly wage of an employee shall be ________ per hour.

A

$4.25

138
Q

Minors cannot exceed _______ hours of combined school and work per week.

A

48

139
Q

From the choices below select the best definition of “complaint”.

A

Oral or written grievance filed by the Department.

140
Q

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?

A

Deliver to the customer fully executed copies of the agreement.