Ch2. Contracts

Question 1

A home improvement salesperson’s registration is valid for a period of ________.

Answer 1

Two years

Question 2

Pre-printed Home Improvement Contracts must use ____________ type with boldface headings.

Answer 2

10-point

Question 3

The maximum amount of a down payment on a Home Improvement
Contract is ______,or _______ whichever is less.

Answer 3

10% or $1000

Question 4

The maximum value of a sales promotion or gift given to potential customers is _______.

Answer 4

$5

Question 5

Home Solicitation Contracts must include a notice called the “Three-Day Right to Cancel” in at least _______________ typeface.

Answer 5

12-point bold

Question 6

Except in an emergency, refunds must be made within __________ of a cancellation.

Answer 6

10 days

Question 7

If a buyer mails a cancellation to the contractor, the cancellation is effective when it is ___________________.

Answer 7

Deposited in the mail

Question 8

It is illegal for a contractor to raise prices more than _____ for 180 days after a declaration of emergency.

Answer 8

10%

Question 9

The regulations of the Truth in Lending Act are commonly known as _____________.

Answer 9

Regulation Z

Question 10

The maximum contract price for a Service and Repair Contract is ________.

Answer 10

$750

Question 11

A contractor may only accept payment on a Service and Repair Contract when work is __________.

Answer 11

Completed

Question 12

A buyer has the right to cancel a Service and Repair Contract until the contractor _______ work.

Answer 12

Starts

Question 13

A homeowner may file suit up to __________ after escrow closes for most construction defects

Answer 13

10 years

Question 14

A homeowner may file suit for an improper application of paint up to __________ after escrow closes.

Answer 14

5 years

Question 15

A contractor must provide an express limited warranty for at least _______ covering fit and finish items.

Answer 15

1 year

Question 16

The purpose of the competitive bidding process is to obtain the best value for public money, eliminate ___________ and___________, and to provide equal opportunity for all qualified contractors.

Answer 16

Fraud and corruption

Question 17

Public Works Contractors must register with DIR every _____________.

Answer 17

Fiscal year

Question 18

Contractors must hire apprentices, if the public works contract is valued at _________
or more.

Answer 18

$30,000

Question 19

Public Works Contracts are awarded to the _________________ bidder.

Answer 19

Lowest reasponsible

Question 20

An _____________ delay occurs due to unforeseen conditions outside the control of the contractor.

Answer 20

Excusable

Question 21

Contractors must list the name and business address of each subcontractor who will perform work greater than _____ of the total bid.

Answer 21

0.5%

Question 22

Written notice must be sent to the subcontractor within _______________ in the case of an accidental clerical error listing a
subcontractor.

Answer 22

6 working days

Question 23

The prime contractor on a public works project may require subcontractors to provide _____________ and __________ bonds.

Answer 23

Performance and payment

Question 24

If a contractor violates any of the provisions of the Subletting and Subcontracting Fair Practices Act, the contractor may be charged a penalty of up to _____ of the subcontract involved.

Answer 24

10%