Regulatory and Statutory Requirements (Overview) Flashcards
The builder or contractor shall deliver to the customer, when construction is involved:
a: Specifications for the job
b: All necessary permits
c: Both plans and specifications
d: Full executed copies of all agreements, including plans and specifications
d: Full executed copies of all agreements, including plans and specifications
Whitie Nowak built a house in January. It was sold in February and Renfru Zetz moved in at completion in September of the same year. The following year in December the pipes froze. Who is responsible for the damage?
(Note: The builder is responsible for faulty workmanship for a period of 18 months. Starting from the date of purchase, completion or occupancy which ever occurs last.)
a: Plumber
b: Builder
c: Heating contractor
d: Homeowner
b: Builder
Which is not a requirement to obtain a builder’s license?
a: Taking a builder’s course and a one year apprenticeship
b: Taking and passing the residential builder’s examination
c: Paying the required license fee
d: Completion of 60 hrs. of required study
a: Taking a builder’s course and a one year apprenticeship
A proper notification of change of address must be made within:
a: 10 days
b: 30 days
c: 45 days
d: 60 days
b: 30 days
What is the first step the Department will take to resolve a complaint between a buyer and builder?
a: File a cease and desist order against the builder
b: File a summary suspension of the builder’s license
c: Hold an informal conference
d: Hold a contested case hearing
c: Hold an informal conference
At what point after a completed contract will the Department not investigate a complaint?
a: A certificate of occupancy is issued
b: A purchase agreement is signed
c: The building is occupied
d: 18 months after completion, occupancy, or purchase, whichever occurs later.
d: 18 months after completion, occupancy, or purchase, whichever occurs later.
A license can be revoked without a hearing:
a: True
b: False
c: Not if the builder shows good faith
d: If the builder is from another state
a: True
A father is the only qualified builder in a partnership he has with his son. The father dies. In order for the son to continue with the business, the son must:
a: Deliver to the department a copy of the death certificate
b: Request that the license be transferred to the son’s name
c: Complete the license application procedure, including taking and passing the exam
d: Claims residential inheritance
c: Complete the license application procedure, including taking and passing the exam
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercising control of the corporation, partnership, or other association is revoked, or denied, the license of the corporation, partnership or other association shall:
a: Be suspended
b: Remain in effect for 30 days
c: Be issued under an assumed name (d.b.a.)
d: Lapse at the end of the month
a: Be suspended
The phrase “good moral character” typically means:
a: Person has no bankruptcies
b: Strong religious convictions
c: Person is honest and fair
d: Person has never been incarcerated
c: Person is honest and fair
An applicant operating as a corporation must submit which of the following to the Department?
a: Copy of the articles of incorporation
b: Certified copy of sales tax license number
c: Names and addresses of corporation board members
d: All of the above
d: All of the above
If, as a licensed builder, you file for bankruptcy, you:
a: Are in violation of the Code and may be subject to any one of the several penalties
b: Must post bond with the Bureau
c: Can continue to operate for not more than 90 days
d: None of the above
a: Are in violation of the Code and may be subject to any one of the several penalties
What is a change in specifications prior to bidding called?
a: A completed application
b: Change order
c: Addition to the contract
d: Change in specifications
d: Change in specifications
A licensee found guilty of one Article 6 violation may be:
a: Suspended, revoked, censured, or placed on probation
b: Suspended, revoked, censured, placed on probation, and/or fined
c: Suspended or reprimanded by the Labor Bureau
d: Suspended, or placed on probation
b: Suspended, revoked, censured, placed on probation, and/or fined
A person who has had a limitation placed on a license may petition the Department, in writing, for a review of the decision to place the limitation. The licensee has how many days to file this petition?
a: 5 days
b: 15 days
c: 30 days
d: 60 days
c: 30 days
An unlicensed builder, Mr. Spencer, contracts to add a room on to homeowner Jones’ house. Upon completion, Mr. Jones refuses to pay builder Spencer for his services. Mr. Spencer:
a: can tear down the room
b: Can record a lien on Mr. Jones’ property
c: Can sue Mr. Jones for his fee, plus court costs
d: Has no recourse
d: Has no recourse
According to the Occupational Code, the following is not a residential builder:
a: One who demolishes houses
b: One who works for an hourly wage for his labor in building a house
c: One who assembles prefabricated housing
d: One who provides plans, labor and materials for the building of a house.
b: One who works for an hourly wage for his labor in building a house
The board member who has participated in an investigation on a complaint filed with the Department, or who has attended an informal conference, _______ participate in making the final decision on that complaint.
a: Must
b: Must not
c: May arbitrate to
d: May be appointed to
b: Must not
A residential builder or maintenance and alteration contractors license is not required if:
a: You contract to build a house as an electrician
b: You build homes part time
c: You are an officer of a court acting within the terms of the officer’s office.
d: You work for a non-profit organization
c: You are an officer of a court acting within the terms of the officer’s office.
A license may be revoked for (mark incorrect answer):
a: A violation of a building code
b: Disregarding blueprints and specifications
c: Mishandling deposit money
d: Both spouses not signing the contract
d: Both spouses not signing the contract
The law regulating licensing of the building trades is known as:
a: Occupational Code of 1980
b: Public Act 299 of 1980
c: Michigan Builders License Law
d: Both A and B
d: Both A and B
A salesperson cannot start selling until he receives his:
a: License and pocket ID card
b: Admittance letter for the examination
c: OL from the builder
d: Until he or she sends in the application for the examination
a: License and pocket ID card
When a builder or contractor wants to advertise in the media, he must:
a: Furnish his license number before any advertising begins.
b: Furnish his license name and address
c: Both a and b
d: Neither, if he’s just in town for a while
c: Both a and b
What is considered a legitimate place of business for a licensed builder?
a: A post office box number
b: A telephone answering service
c: An actual established, physical location from which the builder can and does conduct business and where books and records are kept.
d: The residential construction site
c: An actual established, physical location from which the builder can and does conduct business and where books and records are kept.