Home Improvement Contracts, Consumer Protection, and Deceptive Trade Practices
Domain 2 - Home Improvement Contracts, Consumer Protection, and Deceptive Trade Practices
This domain tests the Connecticut Home Improvement Act contract requirements and the Connecticut Unfair Trade Practices Act (CUTPA), CGS § 42-110a et seq. The exam expects you to spot a defective contract and recognize conduct that DCP or a court will treat as deceptive.
Required contract terms
A home improvement contract must be written and signed by the owner and contractor. It must identify the contractor (name, address, HIC registration number), identify the owner and property, date the agreement, describe the work and materials specifically, state the total price and payment schedule, give start and completion dates, and include a conspicuous three-business-day cancellation notice. It must also advise the owner of the right to file a complaint with DCP. The owner must receive a copy. The cancellation right cannot be waived in the contract.
CUTPA and deceptive practices
CUTPA prohibits unfair or deceptive acts or practices in trade or commerce. Construction examples include false claims of licensure or insurance, bait-and-switch pricing, unsubstantiated 'lifetime' warranties, unauthorized change orders, threats to abandon a job to extract more money, and collecting deposits without intending to perform. Remedies can include actual damages, punitive damages, attorney's fees, costs, and injunctive relief; DCP may also act administratively.
Worked example
A remodeling contract has a cancellation clause in 8-point gray text on page 4 and no DCP complaint notice. The contractor begins demolition the same day. The clause is not conspicuous, and the required notice is missing, so the contract does not comply with the Act. Starting work does not eliminate the owner's cancellation right, and the contractor's attempt to treat the deposit as nonrefundable is a likely deceptive practice.
Traps
Treating an estimate or proposal as a compliant contract; omitting the DCP notice; burying the cancellation clause; accepting a deposit before signing; using oral change orders; and assuming a signed 'waiver' of the three-day right is enforceable.