Chapter 2 - Contracts Flashcards
A home improvement salespersons registration is valid for a period of ?
2 years
Pre-printed Home Improvement Contracts must use ______ type with bold face headings
10- point
The maximum amount of a down payment on a home improvement project contract is _____ or _____, which ever is less
10% or $1,000
The maximum value of a sales promotion or gift given to potential customer is how much ?
$5.00
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 _____ days of 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 an emergency
10%
The regulations of the truth in lending act are commonly known as ________
Regulation Z
A contractor who has his or her license suspended or revoked two or more times within an 8 year period must disclose such information before entering into a contract to perform work on residential property with how many units ?
1 to 4
When must a contractor disclose a previous suspended or revoked license ?
Two or more time within an eight year period
The buyer of a home solicitation contract must refund all goods received in the transaction within ho many days ?
20 days
A contractor may but is not required to, offer a greater or lower protection in the contract with a homebuyer-known as what ?
Enhanced protection agreement
A homeowner may file suit up to _______ _____ after escrow 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
How many days to cancel do clients that are 65 years or older have ?
5 days
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 how often ?
Fiscal year
Contractors must hire apprentices if the public works contract is valued at _______ or more ?
$30,000
Public works contract are awarded to what bidder ?
Lowest responsible
If client cancels how long do you have to pick up any tools left at jobs site ?
20 days
An ________ delay occurs due to unforeseen conditions outside the control of the contractor
Excusable
When is the time the client loses his/her right to cancel ?
If contract is signed at place of business
In case of an extreme emergency the client has how many days to cancel ?
7 days
Contractors must list the name and business address of each subcontractor who will perform work greater than how much of the total bid ?
.5% ( half of one percent)
Written notice must be sent to the subcontractor within ___________ in case of an accidental clerical error listing a subcontractor
2 working days
Performance bond are also referred to as what ?
Completion bonds
Payment bonds are also referred to as what ?
Labor and material bonds
The prime contractor on a public works project may require subcontractors to provide what kind of bonds ?
Performance and payment bonds
If the client does NOT file a Notice of Completion with the county recorder within 15 days from completion of job, the original sub or vendors have up to how many days to put a lien ?
90 days
If the client DOES file a Notice of Completion , the original contractor has how many days to file a line ?
And subcontractors have how many days ?
60 days original contractors
30 days for sub contractors
A home solicitation contract is any contract ( or of any subject to approval) for the sale, lease, or rental of a wide variety of goods and/or services coasting more than _____ that is made at a place other than the owner’s or sellers normal place of business .
$25
