Chapter 2 - Contracts

Question 1

A home improvement salespersons registration is valid for a period of ?

Answer 1

2 years

Question 2

Pre-printed Home Improvement Contracts must use ______ type with bold face headings

Answer 2

10- point

Question 3

The maximum amount of a down payment on a home improvement project contract is _____ or _____, which ever is less

Answer 3

10% or $1,000

Question 4

The maximum value of a sales promotion or gift given to potential customer is how much ?

Answer 4

$5.00

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 _____ days of 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 an emergency

Answer 8

10%

Question 9

The regulations of the truth in lending act are commonly known as ________

Answer 9

Regulation Z

Question 10

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 ?

Answer 10

1 to 4

Question 11

When must a contractor disclose a previous suspended or revoked license ?

Answer 11

Two or more time within an eight year period

Question 12

The buyer of a home solicitation contract must refund all goods received in the transaction within ho many days ?

Answer 12

20 days

Question 13

A contractor may but is not required to, offer a greater or lower protection in the contract with a homebuyer-known as what ?

Answer 13

Enhanced protection agreement

Question 14

A homeowner may file suit up to _______ _____ after escrow for most construction defects

Answer 14

10 years

Question 15

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

Answer 15

5 years

Question 16

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

Answer 16

1 year

Question 17

How many days to cancel do clients that are 65 years or older have ?

Answer 17

5 days

Question 18

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 18

Fraud and corruption

Question 19

Public works contractors must register with DIR every how often ?

Answer 19

Fiscal year

Question 20

Contractors must hire apprentices if the public works contract is valued at _______ or more ?

Answer 20

$30,000

Question 21

Public works contract are awarded to what bidder ?

Answer 21

Lowest responsible

Question 22

If client cancels how long do you have to pick up any tools left at jobs site ?

Answer 22

20 days

Question 23

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

Answer 23

Excusable

Question 24

When is the time the client loses his/her right to cancel ?

Answer 24

If contract is signed at place of business

Question 25

In case of an extreme emergency the client has how many days to cancel ?

Answer 25

7 days

Question 26

Contractors must list the name and business address of each subcontractor who will perform work greater than how much of the total bid ?

Answer 26

.5% ( half of one percent)

Question 27

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

Answer 27

2 working days

Question 28

Performance bond are also referred to as what ?

Answer 28

Completion bonds

Question 29

Payment bonds are also referred to as what ?

Answer 29

Labor and material bonds

Question 30

The prime contractor on a public works project may require subcontractors to provide what kind of bonds ?

Answer 30

Performance and payment bonds

Question 31

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 ?

Answer 31

90 days

Question 32

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 ?

Answer 32

60 days original contractors

30 days for sub contractors

Question 33

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 .

Answer 33

$25