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NY Home Improvement Contractor Study Exam with Complete Solutions, Exams of Engineering

New York University Tandon School of EngineeringEngineering

NY Home Improvement Contractor Study Exam with Complete Solutions

Typology: Exams

2023/2024

Available from 09/09/2024

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NY Home Improvement Contractor Study
Exam with Complete Solutions
A "savings" claim in an adv ertisment cannot imply what? - ANSWER-The amount
specified is the selling price.
Can a Contractor charge a fee for an estimate? - ANSWER-Yes, but they must disclose
the fee to the consumer before providing the estimate and must include and itemize the
fee in the total estimated contract price.
Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ANSWER-No, nor can they act as an agent for, advertise, or promote
loans.
Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in
connection with unlicensed home improvement work? - ANSWER-Yes!
Change of business address, ownership, management, or trade name must be reported
to DCA within how many days? - ANSWER-10 days
Do plumbers and electricians who do not perform work outside their trade need a H.I.
license? - ANSWER-No, they have their own trade licenses.
Do salespersons need to notify DCA about their employers? - ANSWER-Yes within 48
hours of new employment.
Does an individual employee of a contractor, who does not solicit or negotiate contracts,
need to be licensed? - ANSWER-No
Does the H.I. contract have to be in englsh? - ANSWER-Yes, unless another language
was used in any oral (spoken) sales presentation, in which case the contract needs to
be in that language and in English.
How long can a contractor elect to secure a bond or participate in DCA's Home
Improvement Trust Fund? - ANSWER-Every 2 years
How many business locations can a H.I. Contractor's license cover? - ANSWER-One. A
seperate license is required for each place of business.
How many days does a contractor or salesperson have to honor valid notice of
cancellation? - ANSWER-10 business days
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NY Home Improvement Contractor Study

Exam with Complete Solutions

A "savings" claim in an adv ertisment cannot imply what? - ANSWER-The amount specified is the selling price. Can a Contractor charge a fee for an estimate? - ANSWER-Yes, but they must disclose the fee to the consumer before providing the estimate and must include and itemize the fee in the total estimated contract price. Can a H.I. Contractor arrange a home loan or a home improvement loan for a consumer? - ANSWER-No, nor can they act as an agent for, advertise, or promote loans. Can the DCA padlock (close down) and confiscate (take) the tools and trucks used in connection with unlicensed home improvement work? - ANSWER-Yes! Change of business address, ownership, management, or trade name must be reported to DCA within how many days? - ANSWER-10 days Do plumbers and electricians who do not perform work outside their trade need a H.I. license? - ANSWER-No, they have their own trade licenses. Do salespersons need to notify DCA about their employers? - ANSWER-Yes within 48 hours of new employment. Does an individual employee of a contractor, who does not solicit or negotiate contracts, need to be licensed? - ANSWER-No Does the H.I. contract have to be in englsh? - ANSWER-Yes, unless another language was used in any oral (spoken) sales presentation, in which case the contract needs to be in that language and in English. How long can a contractor elect to secure a bond or participate in DCA's Home Improvement Trust Fund? - ANSWER-Every 2 years How many business locations can a H.I. Contractor's license cover? - ANSWER-One. A seperate license is required for each place of business. How many days does a contractor or salesperson have to honor valid notice of cancellation? - ANSWER-10 business days

How many years must a H.I. Contractor maintain copies of contracts, books of account, and other records reflecting all transactions related to the home improvement business?

  • ANSWER-Six (6) years or the length of time of any contractual guarantee, whichever is longer. How much time does the home owner have to cancel the contract? - ANSWER-Until midnight of the third business day. If a consumer wants more work done beyond what's in the original contract, what should a contractor do? - ANSWER-Provide a written amendment to the contract, which both parties must sign. In what form must a home improvement contract be? - ANSWER-Every home improvement contract must be in writing and signed by everyone involved. May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the home owner (customer)? - ANSWER-No, The prime contractor must secure all necessary permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the contract in accordance with state and local building laws. Must a contractor furnish a consumer with a written estimate? - ANSWER-Yes, if the consumer requests one. Must a contractor or salesperson inform the consumer orally of the consumer's right to cancel? - ANSWER-Yes, verbally and written notice. Must a contractor or salesperson provide the consumer with a separate Notice of Cancellation? - ANSWER-Yes. At the time of signing the contractor or salesperson must attach to the signed contract two copies of a separate, completed form titled "Notice of Cancellation." Must a H.I. Contractor license be posted? - ANSWER-Yes, it must be posted in the Contractor's office where all consumers can see it, or show it to consumers upon request. Must a subcontractor be seperately licensed by DCA? - ANSWER-Yes, this includes electricians and plumbers. No work should be performed and no money should be paid until after the ____ day cancellation period? - ANSWER-3 days What 3 notices must the H.I include? - ANSWER-If the owner does not pay the contractor they may have a claim against the owner, that the contractor is legally required to deposit all payments received prior to completion or the contractor must post a bond or contract of indemnity, and the cancellation notice wording.

What legal entity is a contractor required to be? - ANSWER-A contractor may be an individual, a firm, a company, a partnership, or a corporation. What must a H.I. contract detail? - ANSWER-All labor, services, and materials to be furnished and performed. What must all advertising and sales literature contain? - ANSWER-DCA Home Improvement Contractor license number. What parts of a home can a H.I. include? - ANSWER-Any part of the home OR land (including basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, and terraces.) What percentage of a customers payments can a Contractor use for administrative, overhead, and other projects? - ANSWER-The contractor may not use funds received to pay expenses unrelated to the home improvement, unless the home improvement is completed and all expenses for direct labor, material, and subcontractors related to the home improvement have been paid. What schedule should be inclduded with the H.I. contract? - ANSWER-Schedule of payments and the work/services to be performed if the contract calls for incremental payments. What system installations are part of H.I.? (4) - ANSWER-Central heating/air conditioning, Central vacuum, Doors, windows, awnings, and Communication systems. What type of guarantees or warranties can be made? - ANSWER-Only as long as a defect is likely to show up. What type of guarantees or warranties can NOT be made? - ANSWER-"lifetime" guarantees or warranties When and how does a H.I. Contractor's license get renewed? - ANSWER-About three months before license expiration, DCA will mail a renewal package. It can be renewed by mail, online, or in person at the DCA Licensing Center. When is Painting or decoration of a building, residence, home, or apartment considered H.I.? - ANSWER-When there is painting work being done as part of other home improvement work. When is Painting or decoration of a building, residence, home, or apartment NOT considered H.I.? - ANSWER-When it is a standalone job not part of of other home improvement work.

When must the consumer receive a completed, legible copy of the H.I. contract? - ANSWER-At the time of signing and before any work is done. When would an architect or engineer involved with an H.I. project need a contractor's license? - ANSWER-If they are physically performing H.I. functions outside the scope of an architect or engineer. Where does a contractor go to secure a permit for an addition or alteration to a house? - ANSWER-The New York City Department of Buildings (DOB). Who is a "contractor"? - ANSWER-Anyone who owns, operates, maintains, conducts, controls, or transacts a home improvement business and undertakes or agrees to perform any home improvement. Who is a "salesperson"? - ANSWER-Someone who negotiates a H.I. contract with a consumer or tenant, or solicits a home improvement contract from an owner or tenant. Who must have a DCA license? - ANSWER-Any person who solicits, canvasses, sells, performs, or obtains a H.I. contract as a contractor or salesperson must have a DCA license. Who must obtain building and improvement permits? - ANSWER-The prime contractor. Whose responsibility is it to make sure that any addition or alterations meet building code standards and do not violate local zoning laws? - ANSWER-the H.I. Contractor