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Residential Builders License > Law > Flashcards

Law Flashcards

1
Q

What is a payment bond?

A

It guarantees everyone gets paid

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2
Q

What is a performance bond?

A

It guarantees that the contractor will complete the project

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3
Q

What is a bid bond?

A

It is something given to the owner by the contractor to guarantee the contractor will do the work if they win

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4
Q

“All Risk Builders Insurance” is purchased by who?

A

Whoever owns the property

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5
Q

What are the Workers Compensation benefits for death on the job?

A

The dependents receive 80% of the after tax wage for 500 weeks

It also covers up to $6000 in funeral costs

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6
Q

Can horseplay be compensable under Workers Compensation?

A

Yes, though if it was intentional misconduct then it would not be

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7
Q

True or False – Certain workers can get a Workers Compensation exclusion.

A

TRUE

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8
Q

Can a Sole Proprietor be covered under Workers Compensation?

A

No

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9
Q

What is the threshold that requires your company to have Workers Compensation?

A

If you have one employee that works more than 35 hours per week for 13 or more weeks in a year

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10
Q

Through workers compensation you can be paid up to what percent of your after tax wages?

A

80%

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11
Q

In order to collect workers compensation you must be off work how long?

A

1 Week

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12
Q

What form must be submitted for a workers compensation injury report?

A

Form 100

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13
Q

Employers must prevent asbestos exposure in excess of _______.

A

0.1 Fiber per cubic cm

or 1% of air as an 8 hour weighted average

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14
Q

What is the Radon Take Action Level?

A

4 PCI/L

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15
Q

What is used to help control radon

A

4” of gravel under floor slabs and a 6 mil vapor barrier

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16
Q

How long does lead stay in the blood?

A

30 days

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17
Q

How long does lead stay in the soft organs?

A

6 - 8 month

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18
Q

How long does lead stay in the bones and teeth?

A

Forever

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19
Q

Are you required to provide owner and tenants the “Renovate Right” pamphlet and obtain proof of delivery when working on a home that may have lead paint?

A

Yes

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20
Q

You cannot disturb more than _____ of lead paint without being lead certified.

A

Interior –> 6 square feet

Exterior –> 20 square feet

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21
Q

Lead based paint can be in homes built before what date?

A

1978

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22
Q

Employers must protect employees against lead exposure in order to keep it below _______.

A

50 micrograms per meter squared of air over an 8 hour period

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23
Q

Substantial completion of work is obtained when?

A

The owner can take possession and use the property as intended

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24
Q

What is the implied warranty period?

A

1 year

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25
Q

What is included in a “Cost Plus Percentage of Cost” contract?

A

Time and material plus overhead

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26
Q

What is included in a “Cost Plus a Fee” contract?

A

Materials + Labor + Construction Management Fee

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27
Q

What is included in a “Unit Price” contract?

A

Based on the units not sure much the total is since you do not know how many units

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28
Q

What is the most common contract?

A

Lump sum

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29
Q

What is a short term contract that often comes back to bite you call?

A

Letter of Intent

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30
Q

What must you file if you are registering as an “LLC”

A

Articles of Organization

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31
Q

What must you file if you are registering as an “Corporation”

A

Articles of Incorporation

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32
Q

What is a “Joint Venture”

A

It is when more than one existing businesses join together to form one organization

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33
Q

What are the benefits of an “LLC”?

A

They have the limited liability of a corporation and have the tax advantage of a partnership

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34
Q

What are the requirements of an “S” Corporation?

A

Must be a US Citizens and approved to be taxed as a partnership

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35
Q

What is a Corporation

A

Shareholders pay taxes as does the Corporation

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36
Q

What is a “Limited Partnership”?

A

They have a “Silent Partner” and have complex legal documentation

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37
Q

What is a “General Partnership”?

A

When you merge assets, credit, equipment and each partner is liable for the business debts of the other partner(s)

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38
Q

What is a “Sole Proprietorship”?

A

Owner is liable and that includes personal assets

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39
Q

How long must I-9 forms be retained by employers?

A

3 years or 1 year after employment ends (whichever is longer)

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40
Q

The I-9 must be completed within how many days of starting employment?

A

3

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41
Q

For minors school plus work cannot exceed how many hours?

A

48

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42
Q

Minors for the sake of employment is anyone between the ages of _______.

A

14 and 17

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43
Q

What is the minimum wage for 16 - 17 year olds?

A

85% of the general minimum wage

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44
Q

What are the training wage requirements?

A

16 - 19 year olds can be paid $4.25/hour for the first 90 days

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45
Q

What is the Elliot Larson Civil Rights Act?

A

Don’t discriminate

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46
Q

If you fail to pay your employees or your check to them bounces you will get ______.

A

A fine up to $1000 and or a year in jail

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47
Q

Are you required to put fringe benefits in writing?

A

Yes

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48
Q

The Family Medical Leave Act gives up to 12 weeks of unpaid leave in a 12 month period for employers with ______ or more employees.

A

50

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49
Q

What does the “Davis Bacon” Act 1931 require?

A

For Federal Funded projects the prevailing wage must be paid

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50
Q

Should you always hire the most qualified person regardless of disability?

A

Yes

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51
Q

Your first ADA violation is a fine of _____ and your second is _____.

A

$55,000 for the first offense

$110,000 for the second offense

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52
Q

Anything over ________ must be in writing.

A

$1000

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53
Q

Act 227 - Home Solicitation Sale Act

What if you break it and how long can they cancel?

A

Break it and you get up to 6 months in jail and or a $500 fine

They have a 3 day cancellation period

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54
Q

What is the maximum riser height for stairs?

A

8 1/4”

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55
Q

What is the minimum tread length for stairs?

A

9”

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56
Q

Modular homes are inspected when?

A

At the factory

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57
Q

Each building department must have a board of appeals and must act on appeals within how many days?

A

30

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58
Q

What does Act 230 do?

A

It makes code rules into laws

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59
Q

How soon must you discharge a lien once you have been paid?

A

As soon as possible (immediately)

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60
Q

The foreclosure redemption period is ________.

A

4 months

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61
Q

Once you lien a property how long do you have to sue?

A

1 year

62
Q

You must send the General Contractor and the Home Owner a Proof of Service of a Claim of Lien within _______ days of putting the lien on.

A

15 days

63
Q

You must lien the property within _____ days of finishing the work.

A

90 days

64
Q

What does a “Full Conditional Waiver” show?

A

The final payment amount in the future

65
Q

When do you get a “Full Unconditional Waiver”?

A

When the work and payment is fully complete

66
Q

A “Partial Unconditional Waiver” indicates what?

A

Receipt for partial payment for on-going work

67
Q

What is a waiver?

A

A receipt that you have been paid

68
Q

What is a sworn statement?

A

A notarized list of people who have provided labor or materials to a project who are owed money

69
Q

The “Proof of service of notice of furnishing” goes to who and why?

A

The General Contractor and the Home Owner to prove we were on the site. VERIFY!!!!!!!

70
Q

The “notice of furnishing” must be submitted within how many days?

A

CONTRACTORS –> within 20 days of providing services

LABORERS –> 30 days after wages are due

71
Q

Who supplies the “notice of commencement” and within ______ days of the request?

A

The Home Owner

within 10 days

72
Q

What does the “Building Contract Fund” require?

A

Once the Home Owner pays you, you must pay suppliers and subs before using money for personal or business related items

73
Q

How much does it cost for a duplicate license?

A

$10

74
Q

If you change your address or personal name you must notify the department within how many days?

A

30 days

75
Q

An “investigative conference” is with who?

A

Just the Licensee and their attorney if they want one

76
Q

Who determines if a complaint is legit?

A

The local building inspector

77
Q

How many days do you have to respond to the department after a complaint?

A

15

78
Q

How many days do you have to provide a sworn financial statement?

A

35 days

79
Q

TRUE OR FALSE - You must keep good and accessible books

A

TRUE

80
Q

Are you required to build per the plans and models?

A

Yes

81
Q

Do agreements need to be in writing and signed.

A

Yes

82
Q

What needs to be included in all advertising?

A

You license number though no one does this

83
Q

If there is a change in the qualifying officer you must notify LARA within how many days?

A

10

84
Q

If your license is suspended how many days do you have to turn it in?

A

10

85
Q

If you are required by LARA to have a bond due to a limited license and the bond is canceled what will happen?

A

Your license will be suspended

86
Q

The department may deny a license for _______.

A

Good and sufficient cause

87
Q

How many days does an applicant have to submit a requested financial statement?

A

60 days

88
Q

You have how many days after work is done to put a lien on a property?

A

90 days

89
Q

Final orders must be posted on the department website within how many days of the decision being made?

A

30 days

90
Q

Complaint justification verification is done by who?

A

The Building Department

91
Q

Who initiates the alternative dispute resolution procedure?

A

The contractor

92
Q

The sales person must turn over funds received _______.

A

Immediately

93
Q

To avoid abandonment send a certified letter with the following statement ________.

A

“We look forward to completing the project once the issue is resolved”

94
Q

Home Owners have how long to make a complaint?

A

18 months

95
Q

A sales person can work for how many builders?

A

One and only one at a time

96
Q

A non-resident of Michigan may become licensed by filing what?

A

Irrevocable consent to service of process

97
Q

What are the continuing competency requirements?

A

1st renewal 21 hours

2nd renewal 21 hours

3rd and beyond 3 hours with an hour of each of the following: Code, Safety, and Legal Issues

98
Q

True or False – You must have your builders license number on your contracts

A

TRUE

99
Q

You must keep records of continuing competency for how many years?

A

5 years

100
Q

True or False – You must maintain a place of business in Michigan

A

TRUE

101
Q

Is a license required if you are building for local government?

A

No

102
Q

Can property be taken in order to pay a penalty?

A

Yes

103
Q

Can your license be suspended until restitution is made?

A

Yes

104
Q

The maximum administrative fine is what?

A

$10,000

105
Q

Who can remove a limitation on a license?

A

Both LARA and the Board

106
Q

Can someone involved in the hearing also participate in determining the penalty?

A

No

107
Q

The penalty determined by the Board is call what?

A

The Final Order

108
Q

Within how long must the Board review the hearing report and determine the penalty?

A

60 days

109
Q

If an informal conference does not resolve things the next step is to move to what?

A

A Hearing

110
Q

As the respondent you must respond within how many days?

A

15 days

111
Q

You can appeal a decision like a “Cease and Desist” as long as the appeal is made within ________.

A

30 days

112
Q

What is an informal conference?

A

Where LARA brings together the complainant and respondent to attempt to resolve the issue

113
Q

How many days does the investigative unit have to report to the director on the status of the investigation?

A

30 days

114
Q

Who issues the subpoena?

A

Circuit court

115
Q

Once a complaint is received by LARA they have how many days to let them know it was received?

A

15 days

116
Q

Who is the respondent?

A

The person the complaint was against

117
Q

Who can file a complaint?

A

Anyone

118
Q

If you fail to renew your license in time you can renew with a late fee of $20 within _______.

A

60 days

119
Q

Who issues the penalty after a hearing?

A

The Board

If the Board fails to do so after 60 days the department can issue the penalty

120
Q

Can a Board member participate in an informal conference?

A

Yes

121
Q

Who appoints Board members?

A

The Governor

122
Q

Who has physical dominion over the files of the Board?

A

The department

and these files are available to the public

123
Q

Who reviews test questions?

A

The Board and the Department

124
Q

The department director is chosen by who?

A

The Governor with the consent of the Senate

125
Q

Rules are made by who?

A

The department and the board

and they ARE NOT law only rules

126
Q

What is physical dominion?

A

Control and possession

127
Q

True or False – A limitation can only be added to your license after an investigation and a hearing

A

TRUE

128
Q

Who is part of the General Public?

A

Anyone who is 18 or older and lives in Michigan

129
Q

True or False – A complaint can be written or in oral form

A

TRUE

130
Q

What does Censure mean?

A

It is an expression of disapproval of a licensee’s conduct. Not necessarily a violation of ACT 299 (take it as a warning to get your act together)

131
Q

What is the name of the Board?

A

Residential Builders and Maintenance and Alteration Contractors Board

132
Q

What is the Department name?

A

LARA - Licensing and Regulatory Affairs

133
Q

You must notify the department of a change in control or direction of a business within how many days?

A

10 days

134
Q

You have how many months to file a complaint?

A

18 months

135
Q

You have how many days to repay the construction lien fund in order to avoid suspension of your license?

A

90 days

136
Q

What is the duration of a renewed builders license as of June 2008?

A

3 years

137
Q

What is the penalty in the case of death or serious injury?

A

Not less than $5,000 or more than $25,000 and/or 4 years in prison

138
Q

If you practice without a license and it is your second offense what is the penalty?

A

Not less than $5,000 or more than $25,000 and/or 2 years in prison

139
Q

If you practice without a license and it is your first offense what is the penalty?

A

Not less than $5,000 or more than $25,000 and/or 1 year in jail

140
Q

What is the time allotted for a residential builder to return a sale person’s license and for the sales person to return their I.D. card by certified mail?

A

5 days

141
Q

Time allotted to license person to notify them of an investigative conference.

A

10 days

142
Q

You must notify the department if you have a change of name or address of the licensed person within how many days?

A

30 days

143
Q

How long do you have to submit financial records once the Board notifies you?

A

30 days

144
Q

How long do you have to request that a limitation be removed after you receive the notice?

A

30 days

145
Q

The Department has how many days to acknowledge the receipt of a complaint to the complainant?

A

15 days

146
Q

The Board has how long to determine penalties after an administrative hearing?

A

60 days

147
Q

You can renew your license within how many years without needing to re-take the exam?

A

3 years

148
Q

Board members consist of who?

A

4 licensed builders

2 licensed maintenance and alteration contractors

1 building inspector

2 from the general public

Totaling 9

149
Q

Board members much meet a minimum of how many times per year?

A

2 times per year minimum

150
Q

What is the term of a Board member?

A

4 years

and no more than 2 consecutive terms

151
Q

What is ACT 299

A

The Occupational Code

Residential Builders License (3 decks)

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