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NC Business Law And Project magnt > NC Business Law > Flashcards

NC Business Law Flashcards

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1
Q

A major purpose of Licensing is to:

A

Protect the health, safety, and welfare of the public

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2
Q

Where should a general contractor’s license be displayed?

A

At the licensee’s place of business

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3
Q

The state of North Carolina requires you must have a Contractor’s License if the dollar amount of the construction cost exceeds:

A

$30,000

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4
Q

John Smith inherited some money and quit his job. He has decided to build a house for him and his family that they plan to sell within 1 year of completion. His potential cost estimate is $565,000. At this time he is waiting on his building permit so he can begin construction. How has he proceeded?

A

Incorrectly - If you plan to resell a home within one year you must have a builder license

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5
Q

If you fail your contractor’s exam when can you retake the exam?

A

30 days after the previous attempt

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6
Q

North Carolina defines a general contractor as a person or firm or corporation who enters into construction contracts in the amount of at least?

A

$30,000

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7
Q

A company changing its address should report the address change to the NC Licensing Board within how many days?

A

30 days

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8
Q

Does a subcontractor need a license if they are working under the supervision of a prime or general contractor?

A

No

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9
Q

If an applicant is unable to meet the working capital requirements they can?

A

Present a surety bond in lieu of working capital

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10
Q

If a surety bond was used to secure a license and that bond is canceled?

A

The applicant must provide written proof of financial responsibility within thirty days or the license will be suspended.

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11
Q

North Carolina contractor licenses expire annually on December 31st. If the license is not renewed within ___ days following expiration, it becomes invalid.

A

60

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12
Q

How often do Contractor Licenses expire in North Carolina?

A

Every year

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13
Q

Once a contractor’s license expires, what is the period of time before the contractor has to repeat the entire license application process again?

A

4 Years

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14
Q

How much does a limited license application cost?

A

75.00

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15
Q

What is the fee amount to renew your Intermediate license?

A

100.00

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16
Q

According to North Carolina’s “Little Miller” Act, all State construction projects over $300,000.00 require:

A

Performance and Payment Bonds

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17
Q

NC law requires every employer to provide Workers’ Compensation who regularly employs how many people?

A

3 or more

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18
Q

What is the North Carolina Corporate income tax rate?

A

2.50%

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19
Q

What is the purpose of a mechanics’/materialmen’s lien?

A

To attach property to help suppliers and subcontractors to collect monies due.

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20
Q

For the purpose of lien law, who is considered to be in direct contract with the owner of the property?

A

The General contractor

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21
Q

Within _____ days of the building permit issuance, the general contractor can file a notice of contract with the office of the clerk of superior court. The notice must be posted on the property in a visible location adjacent to the posted building permit.

A

30

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22
Q

What is not required on a notice of contract?

A

Date of permit issuance

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23
Q

A lien must be filed within ____ days of providing the last labor or materials?

A

120

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24
Q

A lien must be foreclosed by commencement of a lawsuit within ______days?

A

180

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25
Q

A non-licensed contractor has hired a licensed Contractor to pull permits and supervise the work under the permits. In this scenario, the board could invoke what penalty?

A

Revoke the license of the “licensed contractor”.

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26
Q

How many members make up the North Carolina licensing board?

A

9 Members

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27
Q

Who appoints the members on the licensing board?

A

State Governor

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28
Q

How long is the term period for the members on the licensing board?

A

5 years

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29
Q

What is the minimum amount of times the North Carolina Licensing Board for General Contractors meets each year?

A

2

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30
Q

How many members of the board are required to have a quorum?

A

2

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31
Q

If the qualifier ceases to be connected to a licensee how long will the license remain in effect without a new qualifier?

A

90 days

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32
Q

For ninety days after the qualifier leaves the licensee, the licensee shall or shall not do what?

A

Shall not bid or undertake any additional contracts until the qualifier is replaced

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33
Q

A foreign corporation has filed for a Contractor License. What must be done before the license is issued?

A

The corporation must obtain a certificate of authority from the Secretary of State

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34
Q

How many members of the board does it take to deny or revoke a license?

A

At least 5

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35
Q

The board may impose an administrative fine per violation up to?

A

$5000.00

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36
Q

The Board may take disciplinary action if you?

A

Are fraudulent or deceitful in obtaining a license.

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37
Q

If your contractor’s license is used to pull or gain a permit, you will execute a verified affidavit attesting to the following:

A

That the licensed contractor will personally superintend and manage all aspects of the construction and that the duty will not be delegated to any other person without a license.

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38
Q

Any person or company that falsely claims to be a licensed contractor can be guilty of

A

A class II misdemeanor

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39
Q

The board may revoke a contractor’s license in what circumstance?

A

If a general contractor licensed is found guilty of gross negligence, incompetency, or misconduct?

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40
Q

A contractor has 6 active permitted projects running. As he travels from project to project he needs to delegate some of the supervisory duties. Who can be assigned this responsibility?

A

No one can be

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41
Q

As a General Contractor which (S) specialty would not be covered under your GC license?

A

Grading and Excavation

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42
Q

An applicant, any owner, principal, qualifier must notify the board if they are in bankruptcy or have been in bankruptcy within?

A

Five years prior to filing for the application

43
Q

For a limited license a general contractor must have assets of ________, or a net worth of at least _________?

A

$17,000 in Assets or $80,000 Net Worth

44
Q

If an applicant is using a surety bond when applying for an NC Limited license. The applicant shall maintain the bond in the amount of?

A

$175,000

45
Q

If an applicant is using a surety bond when applying for an NC intermediate license. The applicant shall maintain the bond in the amount of?

A

$500,000

46
Q

What can happen if you sign a statement or contract, falsely indicating that the work is bonded?

A

Your license can be revoked

47
Q

If a qualifier ceases to be connected to a licensee, licensee must notify the board within?

A

10 days of separation

48
Q

The qualifiers credentials will stay active up to __________ if not actively serving as a qualifier or licensed company?

A

4 years

49
Q

A person may serve as a qualifier for how many licenses?

A

2

50
Q

After how many consecutive years without being a qualifier for an active licensee does the qualifier’s exam credentials get archived?

A

4 years

51
Q

Once a qualifier’s exam credentials are archived, what must they do to activate them again?

A

retake the exam

52
Q

Within how many days of a qualifier ceasing to be connected to a licensee, must a licensee notify the board (in writing)?

A

10 Days

53
Q

Two Intermediate licensees with similar classifications, wish to create a joint venture to bid on a $2,000,000 contract. Which of the following is a TRUE statement regarding the situation?

A

Not able to bid as a joint Venture on this project.

54
Q

In North Carolina the requirements for a qualifier, other than an owner, officer, or partner are?

A

They must work at least 20 hours a week and must be a W-2 employee

55
Q

When a qualifier ceases to be connected to a licensee, the qualifier is required to?

A

Notify the Board in writing

56
Q

What happens to a license if it ceases to have any qualifiers?

A

The license is invalidated

57
Q

A “responsible managing” person for a license applicant means someone who works a minimum of how many hours a week at the company?

A

20 hours or a majority of the operational hours of the company

58
Q

As defined by G.S. 87-10, a “member of the personnel” of a company must meet which of the following conditions?

A

Must be a W-2 employee

59
Q

All licensees shall notify the board of any change in the name in which the licensee is conducting business within?

A

30 days

60
Q

If a public building project is performed pursuant to G .S. 87-1.1, the total amount of work to be performed by all licensed general contractors shall not exceed ____ of the total bid price.

A

25%

61
Q

Licensee shall provide the board with a copy of any bankruptcy petition filed within?

A

30 days

62
Q

If a complaint is filed against a contractor the board will notify the contractor in writing within?

A

30 Days

63
Q

Who may file a complaint against a licensed contractor?

A

Any person who believes that a person, firm, or corporation is in violation of acts specified in G.S. 87-13

64
Q

Who may file a complaint against an unlicensed contractor

A

Any person who believes that a person, firm, or corporation is in violation of acts specified in G.S. 87-13

65
Q

Payment and performance bonds for local governmental projects are required when the total amount of construction contracts awarded for any one project exceed ______.

A

$300,000

66
Q

Payment and performance bonds for a State department or agency (including the UNC system) are required when the sum of all construction contracts for any one project exceed _____.

A

$500,000

67
Q

How much shall bonds be for when a bond is required for local government contracts?

A

100% of the contract value

68
Q

A general contractor has a state project valued at $5,000,000. You have been asked to install a staircase as a subcontractor on this project. Are you required to purchase a performance and/or payment bond?

A

Only if your portion of the project is valued at more than $50,000

69
Q

Per the Model and Payment performance bond, what would be defined include as Labor or material?

A

All material furnished or labor perform

70
Q

As a subcontractor, to file a claim against the payment bond you must provide written notice within how many days of when your last labor was completed or materials were furnished?

A

90 days

71
Q

A subcontractor purchased tile from a supplier directly to install on a state project that has a payment bond. The tile supplier has not received payment. How many days does the supplier have to file a claim?

A

120 days

72
Q

s a subcontractor on a public project, you have not received payment for $32,000 worth of labor and materials. What amount can you file on the claim?

A

$12,000

73
Q

A general contractor has placed a $3,000,000 claim for payment on a public project. The court awarded the general contractor $2,000,000. The general contractor also has $80,000 in attorney’s fees. Who would be responsible for the attorney’s fees?

A

The losing party would be responsible for 100%

74
Q

A payment bond for a state project is active for how long after the last day of labor was performed or material furnished?

A

1 year

75
Q

A payment bond must include the following provisions:

A

the date the bond is executed; the name of the principal; the name of the surety; the name of the contracting body; the contract numbe

76
Q

For public bids, if the request to withdraw is denied, the contractor may contest within?

A

20 days

77
Q

On a public bid a request to withdraw bid must be in writing no later than?

A

72 hours after the opening of bids

78
Q

How many bids are required on public bid jobs?

A

3

79
Q

What is the maximum amount of retainage an owner may withhold on all public contracts over $100,000?

A

5%

80
Q

For public contracts, the balance is due to the prime contractor within how many days?

A

45

81
Q

What is the maximum amount of retainage on periodic or final payments the owner can withhold for public projects less than $100,000?

A

0%

82
Q

On public projects subcontractor is to be paid within how many days of the final payment being made?

A

7

83
Q

What percent interest can be charged for public contracts in which the final payment is delayed by more than forty-five days?

A

1% per month

84
Q

On public contracts in which the final payment was received by the prime if the subcontractor has not been paid by the eighth day what penalty will be added?

A

1% interest per month on the outstanding balance

85
Q

The maximum amount of retainage and owner can withhold for a subcontractor that has completed acceptable work is?

A

.5% of the contract

86
Q

If there is still work to be completed or corrected, but a subcontractor has already finished their part by or before the total project completion is 50%, an owner may retain a maximum amount of _____ of the estimated value of the work to be completed within sixty days of a request.

A

.5% of the contract

87
Q

All electrical material, devices, equipment or appliances shall have what identifying information?

A

All of these - Manufacturer’s name and trademark, Voltage and current, Wattage

88
Q

What is the penalty removing or altering identification symbols on electrical material?

A

Class II misdemeanor

89
Q

When does a building permit in which no work has been started will expire?

A

6 months

90
Q

If work has been discontinued the permit will?

A

expire in 12 months

91
Q

The owner or builder may appeal a “Stop Work Order” within how many days after issuance?

A

5 days

92
Q

A defect is discovered in a new building by a local inspector. The building has passed code inspection and has been issued an occupancy certificate. Who is responsible for correcting the defect?

A

The Owner

93
Q

When is a permit required?

A

Moving a water heater more than 5 feet

94
Q

Subcontractor has asked to be paid by the prime contractor but the owner has not paid the prime contractor. The prime contractor must ?

A

Pay the subcontractor regardless if he has received payment are not

95
Q

The General Contractor has received 75% of the total contract payment for a 28 unit apartment complex. A subcontractor that was used has completed their portion of the work satisfactorily. The subcontractor’s total bill was 100,000.00 and he has received $75,000 in payments. The outstanding amount owed to the subcontractor shall be?

A

Paid to the Sub Contractor regardless if the GC has receive payment

96
Q

The right to withhold retainage from a Subcontractor will vary based on the number of how many units on a contract?

A

12

97
Q

Who has the right to file a claim of lien on property?

A

Any person who performs or furnishes labor or professional design or surveying services or furnishes materials or furnishes rental equipment pursuant to a contract, either express or implied

98
Q

The owner shall designate a lien agent in which the value of a construction project exceeds?

A

$30,000

99
Q

In the event that a lien agent resigns or is no longer licensed, the owner shall designate a successor lien agent within?

A

3 Business Days

100
Q

Claims of lien on real property may be filed at any time after the maturity of the obligation secured thereby but not later than ______ days after the last furnishing of labor or materials.

A

120 days

101
Q

An action to enforce a claim of lien on real property must be commenced with in how many days?

A

180

102
Q

A third-tier subcontractor who furnished labor, materials, or rental equipment at the site of the improvement shall be entitled to a lien upon which funds?

A

Those owed to the second-tier subcontractor with whom the third-tier subcontractor dealt.

103
Q

If any contractor or other person receiving payment from an obligor or from a purchaser or from a lender; knowingly furnish, a false written statement of the sums due or claimed to be due, that person shall be guilty of?

A

Class 1 misdemeanor

NC Business Law And Project magnt (3 decks)

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