Michigan Building license Review Questions Flashcards
What is the first offense penalty for engaging in residential building without a license?
A fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 1 year, or both.
What is the penalty for engaging in residential building without a license, resulting in a death?
A fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than 4 years, or both
On your individual builder’s license application, what should you write as your “business address”?
Your personal address
What is the cost of the individual builder’s license?
195
After receiving your residential builder’s license, what are the only trades not covered by your license?
Plumbing, electrical, and HVAC
Name of department that regulates your license
LARA (licensing and regulation authority)
Addenda contract
Addition to scope of work in contract
Who is the TESTING company for the State of Michigan?
PSI
What is the name of the department that regulates your license?
LARA
What is a good current ratio?
2:1
good quick assets ratio
1:1
What are the 2 parts of the Residential Builder Examination?
Business and Law examination & Practice and Trade examination
How long will you have to complete the Practice and Trade portion of the exam?
180 minutes
What is a quick asset ratio?
1 to 1
Under the Carpentry section of the test, what does a “span table” tell us?
What species and what grade of lumber a floor joist has to be to span a certain distance.
Which is NOT a reason that you need a residential business license?
It allows you to work on commercial properties
Where does most fraud occur?
n the residential market
As a builder, your license falls under the regulation of _____.
both rules by the director and board, as well as laws of the state of Michigan
What is the makeup of the 9 members of the board?
There are 6 individuals with a license or registration in the occupation that the board monitors and 3 members of the general public.
Under the definition of occupational code, what does the word “limitation” refer to?
A condition, stricture, restraint, or probation attached to a license relative to the scope of practice
Sec. 309 if there is a penalty who determines the hearing
A board, p u on completion of a hearing conducted pursuant g p
to section 511,
Sec. 308. (1) A board shall promulgate rules as required in the article
in which it is created as are necessary and appropriate to fulfill its ROLE.
Sec. 310. A board shall aid the department in interpreting a licensure
or registration requirement set forth in this act which is incomplete or
subjective in nature to determine whether the person seeking a license
or a certificate of registration or a renewal has met the requirements for
the issuance or renewal.
ec. 316. ( ) 1 Unless otherwise provided in an article, a BOARD AND DEPARTMENT shall develop an examination or p test req y uired by an
article. The board and the department in develop g in an examination or
test may p ado t an examination or test pp y re ared by another agency if the g y
board and the department determine that the examination or test serves
as a basis for determining whether a person has
ec. 411. (1) Subject to subsection (2), a person who fails to renew a
license or registration on or before the expiration date shall not practice
the occupation, operate, or use the title after the expiration date printed
on the license or registration. A license or registration shall lapse on the
day after the expiration date
The license expires May 31st every 3 years.
A person who fails to renew a license or registration on or before
the expiration date shall be permitted to renew the license or registration
by payment of the required license or registration fee and a late renewal
fee within 60 days after the expiration date
60 days, $20 late fee
Except as otherwise provided in this act, a person who fails to
renew a license or registration within the time period set forth in
subsection (2) may be relicensed or reregistered without examination
and without meeting additional education or training requirements in
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Sec. 411. () j 1 Sub ect to subsection ( ), p 2 aerson who fails to renew a
license or registration on or before the expiration date shall not practice p
the occupation, operate, or p p use the title after the exp p iration date printed
on the license or registration. A license or registration shall lapse on the
day after the expiration date.
() p 2 Aerson who fails to renew a license or registration on or before
the exp p iration date shall be permitted to renew the license or registration g
byp ya ment of the required license or registration fee an g d a late renewal
fee within 60 days afte y r the expiration date.
() p 3 Except as otherwise provided in this act, a person who fails to , p
renew a license or registration within the time period set forth in
subsection (2) may be relicensed or () y reregistered without examination g
and without meeting additional education or training requirements in
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P.A. 299 OF 1980
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force at the time of application for relicensure or reregistration if all of the
following conditions are m
The person applies WITHIN 3 years after the expiration date of the
last license or registration
Within 3 years
The person pays an application processing fee, the late renewal
fee, and the per year license or registration fee for the upcoming
licensure or registration period, subject to subsection
Except as otherwise provided in this act, a person may be
relicensed or reregistered subsequent to 3 or more years after the
expiration date of the last license or registration upon showing that the
person meets the requirements for licensure or registration as
established by the department in rules or procedures which may require
a person to pass all or part of a required examination, to complete
continuing education requirements, or to meet current education or
training requirements
If you go past 3 year period, the determines which requirements you would have to do.
Sec. 501. A complaint which alleges that a person has violated this
act or a rule promulgated or an order issued under this act shall be
lodged with the department. The department of attorney general, the
department, a board, or any other person may file a complaint
You cna file complaitn against somone else
“Complainant
means a person who has filed a complaint with the
department alleging that a person has violated this act or a rule
promulgated or an order issued under this act. If a complaint is made by
the department, the director shall designate 1 or more employees of the
department to act as the complainan
“Respondent
means a person against whom a complaint has
been filed who may be a person who is or is required to be licensed or
registered under this act
Sec. 502. The department, upon receipt of a complaint, immediately
shall begin its investigation of the allegations of the complaint and shall
open a correspondence file. The department shall make a written
acknowledgment of the complaint within 15DAYS after receipt of the
complaint to the person making the complaint. If the complaint is made
by the department, the director shall designate 1 or more employees of
the department to act as the person making the complaint
15 days, department will respond back within 15 days, when you notify you also get 15 days
Sec. 503. The department shall conduct the investigation required
under section 502. In furtherance of that investigation, the department
gg g p
Sec. 501. A comp g laint which alleges that a person has violated this p
act or a rule p g romul ated or an order issued under this act shall be
lodg p ed with the department. The department of attorney general, the y g
department, a board, or any other person may file a complaint.
Sec. 501a. As used in this article:
() p a “Complainant” means a person who has filed a complaint with the p
dep gg artment alleging that a person has violated this act or a rule
p g romul ated or an order issued under this act. If a complaint is made by p
the dep , artment, the director shall designate 1 or more employees of the g
department to act as the complainant.
() p b “Respondent” means a p g erson against whom a complaint has
been filed who may be a per y son who is or is required to be licensed or
registered under this act.
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Sec. 502. The department, up p on receipt of a complaint, immediately p
shall beg g in its investigation of the allegations of the complaint and shall
op p en a correspondence file. The department shall make a written
acknowledg p ment of the complaint within 15 days after receipt of the
compp g laint to the person making the complaint. If the complaint is made
by of
p p
the department, the director shall designate 1 or more employees
the department to act as the person making the complaint.
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Sec. 503. The department shall conduct the investigation required g q
under section 502. In furtherance of that investigation, the department
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P.A. 299 OF 1980
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may request that the attorney general petition the circuit court to issue a
subpoena requiring a person to appear before the department and be
examined with reference to a matter within the scope of the investigation
and to produce books, papers, or documents pertaining to the
investigation
Sec. 504. (1) The investigative UNIT OF THE DERPSRTNEMTN WITHIN 30 Days
after the department receives the complaint, shall report to the director
on the status of the investigation. If, for good cause shown, an
investigation cannot be completed within 30 days, the director may
extend the time in which a report may be filed
wihtin 30 days. The investigative UNIT OF THE DERPSRTNEMTN WITHIN
If the report of the investigative unit made pursuant to subsection
(1) discloses evidence of a violation of this act or a rule promulgated or
an order issued under this act, the department or the department of
attorney general shall prepare the appropriate action against the
respondent which may be any of the following
A formal complaint.
(b) A cease and desist order.
(c) A notice of summary suspension.
(d) A citation.
At any time during its investigation or after the issuance of a
formal complaint, the department may bring together the complainant
and the respondent for an INFORMAL CONFERENCE. At the informal
conference, the department shall attempt to resolve issues raised in the
complaint and may attempt to aid the parties in reaching a formal
settlement or stipulation
INFORMAL CONFERENCE, when you go there this is when you try to resolve the complaint
Sec. 506. (1) After an investigation has been conducted, the director may
order a person to cease and desist from a violation of this act or a rule
promulgated or an order issued under this act
A person ordered to cease and desist shall be entitled to a
hearing before the department if a written request for a hearing is filed
within 30 days after the effective date of the order
anytime an order comes down you have 30 days to appeal
Upon a violation of a cease and desist order issued under this
act, the department of the attorney general may apply in the circuit court
of this state to restrain and enjoin, temporarily or permanently, or both, a
person from further violating a cease and desist order
if you continue working after a judge order you will go to jail,
Sec. 508. (1) After an investigation has been conducted and a formal
complaint prepared, the department shall serve the formal complaint
upon the respondent and the complainant. At the same time, the
department shall serve the respondent with a notice describing the
compliance conference and hearing processes and offering the
respondent a choice of 1 of the following opportunities
When investigation in private its a complaints conference, also called an investigative conference.
(A) An opportunity to meet with the department to negotiate a
settlement of the matter.b) If the respondent is a licensee or registrant under this act, an
opportunity to demonstrate compliance prior to holding a contested case
hearing, as required by section 92 of the administrative procedures act of
1969, Act No. 306 of the Public Acts of 1969, being section 24.292 of the
Michigan Compiled Laws.
(c) An opportunity to proceed to a contested case hearing as set
forth in section 71 of Act No. 306 of the Public Acts of 1969, being
section 24.271 of the Michigan Compiled Laws
A respondent upon whom service of a formal complaint has been
made pursuant to this section may select, WITHIN 15 DAYS after the receipt
of notice, 1 of the options described in subsection (1). If a respondent
does not select 1 of those options within the time period described in this
section, then the department shall proceed to a contested case hearing
as described in subsection (1)(c).
(3) An informal conference may be attended by a member of the
board
15 days after the receipt of notice.
A board may reject a settlement and require a
contested case hearing under section 71 of Act No. 306 of the Public
Acts of 1969, as amended, being section 24.271 of the Michigan
Compiled Laws
Both you and complaint owner can settle but the board can veto
Sec. 510. This act does not prevent a person against whom a
complaint has been filed from showing compliance with this act, or a rule
or an order promulgated or issued under this act
Sec. 511. If an informal conference is not held or does not result in a
settlement of a complaint, a hearing pursuant to section 92 of Act No.
306 of the Public Acts of 1969, as amended, shall be held. A hearing
under this section may be attended by a member of a board
If not able to resolve at infromal confernce. investigator goes to hearing (judge)
Sec. 512. The department or the department of the attorney general
may petition a circuit court to issue a subpoena which shall require the
person subpoenaed to appear or testify or produce relevant documentary
material for examination at a proceeding conducted under section 511 or
508
Sec. 513. (1) Except as provided in subsection (3), at the conclusion
of a hearing conducted under section 511, the administrative law
hearings examiner shall submit a determination of findings of fact and
conclusions of law to the department and the department of the attorney
general and the appropriate board in a hearing report. The submitted
hearing report may recommend the penalties to be assessed as
prescribed in article 6
THE ADMINISTRAtive LAW hearing organization (know that)
(2) A copy of a hearing report shall be submitted to the person who
made the complaint and to the person against whom the complaint was
lodged.
(3) For a complaint involving professional standards of practice
under article 7, a majority of the members of the board who have not
participated in an investigation of the complaint or who have not attended
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Sec. 510. This act does not prevent a person against whom a
comp g laint has been filed from showing compliance with this act, or a rule p
or an order promulgated or issued under this act,
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Sec. 511. If an informal conference is not held or does not result in a
settlement of a comp g laint, a hearing pursuant to section 92 of Act No.
306 of the Public Acts of 1969, as amended, shall be held. A hearing
under this section may be attended by a member of a board.
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p
Sec. 512. The department or the department of the attorney general y g
may petition a circuit court to issue a subpoena which shall require the
p p erson subpoenaed to appear or testify p orroduce relevant documentary
material for examination at a proceeding conducted under section 511 or
508.
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Sec. 513. () p 1 Except as provided in subsection (3), at the conclusion ( )
of a hearing conducted under section 511, the administrative law
hearings examiner shall submit a determination of findings of fact and
conclusions of law to the department and the department of the attorney
g p eneral and the app p ro riate board in a hearing report. The submitted g p
hearing report may recommend the gp y penalties to be assessed as
prescribed in article 6.
( ) py 2 A copy of a hearing p re ort shall be submitted to the person who
made the complaint and to the person against whom the complaint was
lodged.
( ) p 3 For a complaint involving professional standards of practice
under article 7, a majority of the members of the board who have not
participated in an investigation of the complaint or who have not attended
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an informal conference, shall sit to make findings of fact in relation to the
complaint
Sec. 514. (1) Within 60 days after receipt of an administrative law
hearings examiner’s hearing report, the board receiving the hearing
report shall meet and make a determination of the penalties to be
assessed under article 6. The board’s determination shall be made on
the basis of the administrative law hearings examiner’s repor
WITHIN 60 DAYS for board to issue penalty.
(3) A member of a board who has participated in an investigation on
a complaint filed with the department or who has attended an informal
conference shall not participate in making a final determination in a
proceeding on that complaint
A copy of the report goes to everyone.
Who, upon completion of a hearing, shall assess a penalty or penalties?
the board
If you fail to renew your license or registration on or before the expiration date, how many days do you have to resubmit with the proper payment and late fee?
60 days
When the department investigates a complaint and finds evidence of a violation, what actions can be taken against the respondent?
A cease and desist order.
A formal complaint.
A citation.
All of the above.
How many days after the administrative law hearings examiner hears the report must the board determine penalties?
60 days
What is a compliance conference?
A meeting where the respondent meets with the department to discuss the complaint against them.
Which of the following is NOT a possible penalty for operating without a residential builder’s license?
A fine of $50,000.
Which of the following terms means a premise used or intended to be used for a residence purpose and related facilities appurtenant to the premises used or intended to be used as an adjunct of residential occupancy?
residential structure
Other than the listed salesperson, an employee may make a sale when ______.
it is occasional and incidental to the person’s principal employment
Which of the following is why someone would be allowed to operate without a residential business license?
They are an authorized representative of the United States government.
They are the owner of a rental property and are responsible for the maintenance and alteration of that rental property.
An owner of property with reference to a structure on the property for the owner’s own use and occupancy.
All of the above
Beginning the license cycle after December 21, 2007, the department shall issue the license of a residential builder and residential maintenance and alteration contractor for a period of how many years?
3 years
After receiving your initial residential builder’s license, how many continuing competency h are required within the next 3 years?
21 hours
If a salesperson desires to change employment from one residential builder or maintenance and alteration contractor to another _____.
the license shall be forwarded to the department, an application will be made for a transfer, and a new license under the salesperson’s new employer will be issued
Regarding workmanship, how long does a client have to file a “verified complaint”?
18 months
Suppose a licensed residential builder or licensed residential maintenance and alteration contractor wishes to change the control or direction of the business. How long to they have to report that change to the department?
10 days
The department shall conduct a review upon notice that the licensee has violated the Asbestos Abatement Contractors Licensing Act; what are the possible consequences for this violation?
The department may suspend or revoke that person’s license, and fines may be issued.
When the board issues the findings of a verified complaint, _____.
the department shall post on its website any final order of the board and the date it was issued
the posting shall occur within 30 days after the final order is issued
the department shall annually post on its website the number of final orders to the board
all of the above
According to the Administrative Rules, an application for a license shall include _____.
the residence address of all individuals, partners, officers, and/or members, as requested by the department
the address of the principal place of business in Michigan
both A and B
Upon final order of license suspension or revocation, the licensee shall surrender the license to the department within how many days of the date of suspension or revocation?
10 days
According to Administrative rules, a licensee shall include the following in all advertising: _____.
the name on the license
the license number
the actual business address as shown on the license
all of the above
According to purchase and sale agreements, the builder or contractor shall make certain that the written agreements clearly state the terms of the transaction, including: _____.
specifications and cost
the type and quality of materials
the type and amount of work to be done
all of the above
After investigation, the department may request a licensee to appear at such _________ as is necessary to determine whether there is cause for complaint that would require a hearing on or dismissal of the complaint.
investigative conference
A respondent in a complaint may be represented by _____.
an attorney
his/her own self
Both A and B
What act was created to collect fees for regulating certain occupations and professions and for certain agencies and businesses, create certain funds, and prescribe certain powers and duties of certain state agencies and departments?
State License Fee Act
What is the “Occupational License For Former Offenders Act?”
An act to encourage and contribute to the rehabilitation of former offenders and to assist them in the assumption of the responsibilities of citizenship.
According to the “Building Contract Fund,” evidence of “intent to defraud” is defined as _____.
when a contractor, or any subcontractor, appropriates money to his/herself for building operations BEFORE the payment by him of all money due or so to become due laborers, subcontractors, material men, or others entitled to payment
Which of the following is true regarding employing minors?
A minor shall not work more than 6 days a week.
Every 5 hours of work requires a 30-minute break.
Both A and B.
Which is NOT an advantage of sole proprietorship?
The owner is liable for all debts.
Which is NOT an advantage of a general partnership?
Each partner is liable for the business debts of the other partner
What allows an individual to invest in a general partnership without input on how the partnership is operated?
limited partnership
What is it called when several business members come together to form a new business entity larger and financially stronger than if they acted alone?
joint venture
The Uniform Commercial Code states that a contract for the sale of goods for the price of $1,000.00 or more must be ______.
in writing sufficient to indicate a sale between parties and signed
According to the Americans With Disabilities Act (ADA), which of the following is NOT true?
Employees are allowed to require a medical exam before making a job offer.
Minimum Wage Law states ____.
after 40 hours in any one work week, compensation is 1 1/2 times the regular rate
an employer shall not discriminate based on sex when paying employees for the same work requirement
Who is covered by the Employing Minors Youth Employment Standards Act?
ages 14, 15, 16, and 17
The Family Medical Leave Act states ____.
employees may receive unpaid leave for certain reasons
employees may receive up to 12 weeks of leave in a 12-month period
this law pertains to employers with 50 or more employees engaged in commerce or affecting commerce
A claim of lien MUST be completed within how many days of last being on the job site?
90 days
If you DO get paid before the lawsuit after filing a lien claim, what form must you complete?
discharge of construction lien
What is the maximum amount you can collect through a judgment in the small claims division of the district court using the small claims form DC84?
$6,000
After Mr. Jones receives a sworn statement that he owes ABC Framing $40,000, how does he know that ABC Framing was ever on the job site?
the proof of service of notice of furnishing
According to the State Construction Code Act, how often will the Construction Code Commission update the state code?
every 3 years
How many days after notification of a complaint does the respondent have to respond?
15 days
Once the investigative unit receives a complaint, who do they verify the legitimacy of the complaint with?
the building inspector of the local jurisdiction (city building department)
If the dispute cannot be resolved at the informal conference, where does it go next?
the administrative law hearing examiner (also known as hearing officer/presiding officer)
The findings/penalty of the Administrative Law Hearing Examiner are reported to _____.
the respondent and claiment
the board
the investigative unit
