AFIP Certification Questions and Answers 2025
(True/False): Ignorance of the law will shield you from
liability if you are noncompliant.
False
(True/False): As an F&I manager working directly with
customers, you are individually responsible for your
actions and what you say to each customer.
True
In a typical credit transaction the (bank)/(dealer) is the creditor.
The dealer is the creditor
What is a contract?
A contract is an agreement involving a promise or set of promises that
the law enforces or protects.
The formation of a contract requires three elements:
1. Offer
2. Acceptance
Master01 | October, 2024/2025 | Latest update
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3. Consideration
An offer consists of three elements:
1. An expression of a promise or commitment (intent) to enter a
contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this case, the
customer)
An offer may be terminated by:
1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer:
1. The offer is accepted by one who is entitled to accept
2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the offer and,
therefore, do not amount to a counteroffer
The Statute of Frauds
Master01 | October, 2024/2025 | Latest update
,AFIP Certification Questions and Answers 2025
Generally requires that all contracts involving the sale of goods for a
price of $500 or more be in writing.
The Statute of Frauds requires a written contract for the sale of goods for a
price of _______ or more.
$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?"
The parties to the contract must be of legal age under the laws of the
state in which the contract is written.
Criteria that can block the formation of a valid contract:
1. The need for a written agreement under the Statute of Frauds and
certain provisions of the Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it applies to a contract?
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
The requirement that each party to the contract receives something of
value in exchange for what is given.
Finance Charge
The Finance Charge is the resulting dollar amount calculated by
applying the Annual Percentage Rate to the Amount Financed over
the term of the contract.
How the Itemization of Amount Financed is completed
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract
Section A) General Information -- Identifies the parties to the
agreement.
Section B) Mandated Disclosures -- Disclosures required by TILA
Master01 | October, 2024/2025 | Latest update
(True/False): Ignorance of the law will shield you from
liability if you are noncompliant.
False
(True/False): As an F&I manager working directly with
customers, you are individually responsible for your
actions and what you say to each customer.
True
In a typical credit transaction the (bank)/(dealer) is the creditor.
The dealer is the creditor
What is a contract?
A contract is an agreement involving a promise or set of promises that
the law enforces or protects.
The formation of a contract requires three elements:
1. Offer
2. Acceptance
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
3. Consideration
An offer consists of three elements:
1. An expression of a promise or commitment (intent) to enter a
contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this case, the
customer)
An offer may be terminated by:
1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer:
1. The offer is accepted by one who is entitled to accept
2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the offer and,
therefore, do not amount to a counteroffer
The Statute of Frauds
Master01 | October, 2024/2025 | Latest update
,AFIP Certification Questions and Answers 2025
Generally requires that all contracts involving the sale of goods for a
price of $500 or more be in writing.
The Statute of Frauds requires a written contract for the sale of goods for a
price of _______ or more.
$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?"
The parties to the contract must be of legal age under the laws of the
state in which the contract is written.
Criteria that can block the formation of a valid contract:
1. The need for a written agreement under the Statute of Frauds and
certain provisions of the Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it applies to a contract?
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
The requirement that each party to the contract receives something of
value in exchange for what is given.
Finance Charge
The Finance Charge is the resulting dollar amount calculated by
applying the Annual Percentage Rate to the Amount Financed over
the term of the contract.
How the Itemization of Amount Financed is completed
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract
Section A) General Information -- Identifies the parties to the
agreement.
Section B) Mandated Disclosures -- Disclosures required by TILA
Master01 | October, 2024/2025 | Latest update
