Exam Practice Test Questions And Correct

New Jersey Home Improvement Contractor Exam Practice Test Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

All topics covered: NJ Contractor Law, Contracts, Business Practices, Safety,

Codes, Consumer Protection, Finance, Estimating, Liens

• A New Jersey Home Improvement Contractor must register with which

agency before performing work in the state?

• Division of Revenue
• New Jersey Division of Consumer Affairs
• New Jersey Department of Labor
• Local Building Department

Rationale: The NJ Division of Consumer Affairs oversees the HIC

registration program for consumer protection.

• Home improvement contracts in NJ must be in writing when the total

price exceeds: 1 / 3

A. $100

B. $300

C. $500

D. $1,000

Rationale: State law requires written contracts for any job of $500 or

more.

• A contractor’s HIC registration in NJ is valid for how long?
• 6 months
• 1 year
• 2 years
• 5 years

Rationale: NJ HIC registration must be renewed every two years.

4. The New Jersey Consumer Fraud Act is designed to protect:

• Only licensed businesses
• Commercial property owners
• Consumers from deceptive business practices
• State agencies

Rationale: The Act prevents fraud and mandates fair business

practices.

5. A home improvement contractor in NJ must provide proof of:

• Workers compensation only
• No insurance required
• Auto insurance only 2 / 3

• Commercial general liability insurance

Rationale: Liability insurance is required for obtaining and

maintaining registration.

• What must be included in a written home improvement contract?
• Contractor hobbies
• Social security number
• Start and completion dates
• Business competitor list

Rationale: Dates are required for consumer protection and

scheduling transparency.

7. Change orders must be:

• Verbal
• Written and signed by both parties
• Sent by email only
• Issued by inspector

Rationale: Written change orders protect both contractor and

customer regarding modifications and costs.

8. A contractor advertising “special discounts” must:

• Offer them every day
• Clearly disclose all terms and limitations
• Add hidden fees
• Mention only verbally
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