. AFIP Certification Study Guide – Learn, Practice,
Succeed.
False
1. (True/False): Ignorance of
the law will shield you
from liability if you are
noncompliant. True
2. (True/False): As an F&I
manag- er working directly
with cus- tomers, you are
individually re- sponsible
for your actions and what The dealer is the creditor
you say to each customer.
3. In a typical credit
transaction the
(bank)/(dealer) is the credi-
tor.
4. What is a contract? A contract is an agreement involving a promise or set
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
promises that the law enforces or protects.
5. The formation of a 1. Otter
contract re- quires three 2. Acceptance
elements:
3. Consideration
1. An expression of a promise or commitment
6. An offer consists of three
(intent) to enter a contract
ele- ments:
2. An expression of definite and certain terms
3. The communication of the otter to the otteree
(in this case, the customer)
7. An offer may be terminated by: 1. An act of the parties
2. The operation of law
8. There are three criteria for 1. The otter is accepted by one who is entitled to
the acceptance of an accept
offer: 2. The acceptance takes the proper form and is time
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
3. The terms of acceptance reflect closely the
terms of the otter and, therefore, do not amount to
a counterotter
9. The Statute of Frauds Generally requires that all contracts involving the sale
goods for a price of $500 or more be in writing.
10. The Statute of Frauds requires a
$500 written contract for the
sale of goods for a price of
or
more.
11. What is required in order for the The parties to the contract must be of legal age
under the
parties (the individuals entering laws of the state in which the contract is written.
into the contract) to have "legal
capacity?"
12. Criteria that can block the 1. The need for a written agreement under the
for- mation of a valid Statute of Frauds and certain provisions of the
contract:
Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contrac
3. The act of fraudulent inducement
The requirement that each party to the contract receives
13. What is "consideration" as
something of value in exchange for what is given.
it ap- plies to a contract?
14. Finance Charge The Finance Charge is the resulting dollar amount
calculat- ed by applying the Annual Percentage Rate
to the Amount Financed over the term of the
contract.
15. How the Itemization of Amount Financed is
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
completed 1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-
Downpay- ment)
Succeed.
False
1. (True/False): Ignorance of
the law will shield you
from liability if you are
noncompliant. True
2. (True/False): As an F&I
manag- er working directly
with cus- tomers, you are
individually re- sponsible
for your actions and what The dealer is the creditor
you say to each customer.
3. In a typical credit
transaction the
(bank)/(dealer) is the credi-
tor.
4. What is a contract? A contract is an agreement involving a promise or set
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
promises that the law enforces or protects.
5. The formation of a 1. Otter
contract re- quires three 2. Acceptance
elements:
3. Consideration
1. An expression of a promise or commitment
6. An offer consists of three
(intent) to enter a contract
ele- ments:
2. An expression of definite and certain terms
3. The communication of the otter to the otteree
(in this case, the customer)
7. An offer may be terminated by: 1. An act of the parties
2. The operation of law
8. There are three criteria for 1. The otter is accepted by one who is entitled to
the acceptance of an accept
offer: 2. The acceptance takes the proper form and is time
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
3. The terms of acceptance reflect closely the
terms of the otter and, therefore, do not amount to
a counterotter
9. The Statute of Frauds Generally requires that all contracts involving the sale
goods for a price of $500 or more be in writing.
10. The Statute of Frauds requires a
$500 written contract for the
sale of goods for a price of
or
more.
11. What is required in order for the The parties to the contract must be of legal age
under the
parties (the individuals entering laws of the state in which the contract is written.
into the contract) to have "legal
capacity?"
12. Criteria that can block the 1. The need for a written agreement under the
for- mation of a valid Statute of Frauds and certain provisions of the
contract:
Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contrac
3. The act of fraudulent inducement
The requirement that each party to the contract receives
13. What is "consideration" as
something of value in exchange for what is given.
it ap- plies to a contract?
14. Finance Charge The Finance Charge is the resulting dollar amount
calculat- ed by applying the Annual Percentage Rate
to the Amount Financed over the term of the
contract.
15. How the Itemization of Amount Financed is
, . AFIP Certification Study Guide – Learn, Practice,
Succeed.
completed 1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-
Downpay- ment)
