Ch2. Contracts Flashcards
A home improvement salesperson’s registration is valid for a period of ________.
Two years
Pre-printed Home Improvement Contracts must use ____________ type with boldface headings.
10-point
The maximum amount of a down payment on a Home Improvement
Contract is ______,or _______ whichever is less.
10% or $1000
The maximum value of a sales promotion or gift given to potential customers is _______.
$5
Home Solicitation Contracts must include a notice called the “Three-Day Right to Cancel” in at least _______________ typeface.
12-point bold
Except in an emergency, refunds must be made within __________ of a cancellation.
10 days
If a buyer mails a cancellation to the contractor, the cancellation is effective when it is ___________________.
Deposited in the mail
It is illegal for a contractor to raise prices more than _____ for 180 days after a declaration of emergency.
10%
The regulations of the Truth in Lending Act are commonly known as _____________.
Regulation Z
The maximum contract price for a Service and Repair Contract is ________.
$750
A contractor may only accept payment on a Service and Repair Contract when work is __________.
Completed
A buyer has the right to cancel a Service and Repair Contract until the contractor _______ work.
Starts
A homeowner may file suit up to __________ after escrow closes for most construction defects
10 years
A homeowner may file suit for an improper application of paint up to __________ after escrow closes.
5 years
A contractor must provide an express limited warranty for at least _______ covering fit and finish items.
1 year
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.
Fraud and corruption
Public Works Contractors must register with DIR every _____________.
Fiscal year
Contractors must hire apprentices, if the public works contract is valued at _________
or more.
$30,000
Public Works Contracts are awarded to the _________________ bidder.
Lowest reasponsible
An _____________ delay occurs due to unforeseen conditions outside the control of the contractor.
Excusable
Contractors must list the name and business address of each subcontractor who will perform work greater than _____ of the total bid.
0.5%
Written notice must be sent to the subcontractor within _______________ in the case of an accidental clerical error listing a
subcontractor.
6 working days
The prime contractor on a public works project may require subcontractors to provide _____________ and __________ bonds.
Performance and payment
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.
10%
