AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
AFIP CERTIFICATION ACTUAL EXAM NEWEST AFIP
CERTIFICATION EXAM PREPARATION/AFIP CERTIFICATION
PRACTICE EXAM WITH COMPLETE QUESTIONS AND CORRECT
ANSWERS| BRAND NEW VERSION!
Are there state laws that require TILA and Reg. Z disclosures, even when the
federal government doesn't? - Correct Answer-Yes
If a customer is re-contracted five days after the original agreement was executed,
how should the second agreement be treated? - Correct Answer-You should re-
contract the transaction as of the date of re-contracting, recalculating all deal
terms and disclosures as if the re-contracting were a completely new transaction.
According to TILA and Reg. Z, with the exception of rules regarding
advertisements, dealers must maintain evidence of the TILA and Reg. Z disclosures
(copies of the installment sale contracts) for _______. - Correct Answer-Two years
after the date disclosures are required to be made or action is required to be
taken.
Heather receives a cease and desist order for an ad she ran that violated TILA and
Reg. Z. If she continues to run the ad, what are the potential penalties? - Correct
Answer-Initial violations are subject to the FTC's "cease and desist" (C&D) actions.
Subsequent violations of that C&D order can expose a dealer to fines of up to
$16,000 per day, per violation.
Which regulation implements the Truth in Lending Act? - Correct Answer-
Regulation Z
1|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
(True/False) In any discussion or representation to a prospective or committed
customer regarding the cost of credit - oral discussions, advertisements,
installment sale contracts - the term "APR" or "annual percentage rate" should be
used. - Correct Answer-True
Which types of practices does the Federal Trade Commission Act address as it
relates to advertising? - Correct Answer-Unfair and Deceptive
If a dealership runs a monthly payment ad in which the payment and terms only
apply to one or two of the vehicles offered for sale (and that is not specifically
stated in the ad), it is running a _______ ad. - Correct Answer-Bait-and-Switch
If a dealership hires an agency that runs advertisements on the dealer's behalf
and those ads are later determined to be in violation of either state or federal
advertising laws, who may be held liable? - Correct Answer-Both the dealer and
the agency
What truth-in-advertising rules apply to advertisers? - Correct Answer--Advertising
must be truthful and non-deceptive
-Advertisers must have evidence to back up their claims
-Advertisements cannot be unfair
What makes an advertisement deceptive? - Correct Answer-If an ad contains a
statement - or omits information - that:
-Is likely to mislead consumers acting reasonably under the circumstances
2|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
-Is "material" - that is, important to a consumer's decision to buy or use the
product
What makes an advertisement unfair? - Correct Answer-An ad or business practice
is unfair if:
-It causes or is likely to cause substantial consumer injury which a consumer could
not reasonably avoid
-It is not outweighed by the benefit to consumers
(True/False): Ignorance of the law will shield you from liability if you are
noncompliant. - Correct Answer-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. -
Correct Answer-True
In a typical credit transaction the (bank)/(dealer) is the creditor. - Correct Answer-
The dealer is the creditor
What is a contract? - Correct Answer-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: - Correct Answer-1. Offer
2. Acceptance
3. Consideration
3|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
An offer consists of three elements: - Correct Answer-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: - Correct Answer-1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: - Correct Answer-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 - Correct Answer-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. - Correct Answer-$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?" - Correct Answer-The parties to the contract
must be of legal age under the laws of the state in which the contract is written.
4|Page
AFIP CERTIFICATION ACTUAL EXAM NEWEST AFIP
CERTIFICATION EXAM PREPARATION/AFIP CERTIFICATION
PRACTICE EXAM WITH COMPLETE QUESTIONS AND CORRECT
ANSWERS| BRAND NEW VERSION!
Are there state laws that require TILA and Reg. Z disclosures, even when the
federal government doesn't? - Correct Answer-Yes
If a customer is re-contracted five days after the original agreement was executed,
how should the second agreement be treated? - Correct Answer-You should re-
contract the transaction as of the date of re-contracting, recalculating all deal
terms and disclosures as if the re-contracting were a completely new transaction.
According to TILA and Reg. Z, with the exception of rules regarding
advertisements, dealers must maintain evidence of the TILA and Reg. Z disclosures
(copies of the installment sale contracts) for _______. - Correct Answer-Two years
after the date disclosures are required to be made or action is required to be
taken.
Heather receives a cease and desist order for an ad she ran that violated TILA and
Reg. Z. If she continues to run the ad, what are the potential penalties? - Correct
Answer-Initial violations are subject to the FTC's "cease and desist" (C&D) actions.
Subsequent violations of that C&D order can expose a dealer to fines of up to
$16,000 per day, per violation.
Which regulation implements the Truth in Lending Act? - Correct Answer-
Regulation Z
1|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
(True/False) In any discussion or representation to a prospective or committed
customer regarding the cost of credit - oral discussions, advertisements,
installment sale contracts - the term "APR" or "annual percentage rate" should be
used. - Correct Answer-True
Which types of practices does the Federal Trade Commission Act address as it
relates to advertising? - Correct Answer-Unfair and Deceptive
If a dealership runs a monthly payment ad in which the payment and terms only
apply to one or two of the vehicles offered for sale (and that is not specifically
stated in the ad), it is running a _______ ad. - Correct Answer-Bait-and-Switch
If a dealership hires an agency that runs advertisements on the dealer's behalf
and those ads are later determined to be in violation of either state or federal
advertising laws, who may be held liable? - Correct Answer-Both the dealer and
the agency
What truth-in-advertising rules apply to advertisers? - Correct Answer--Advertising
must be truthful and non-deceptive
-Advertisers must have evidence to back up their claims
-Advertisements cannot be unfair
What makes an advertisement deceptive? - Correct Answer-If an ad contains a
statement - or omits information - that:
-Is likely to mislead consumers acting reasonably under the circumstances
2|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
-Is "material" - that is, important to a consumer's decision to buy or use the
product
What makes an advertisement unfair? - Correct Answer-An ad or business practice
is unfair if:
-It causes or is likely to cause substantial consumer injury which a consumer could
not reasonably avoid
-It is not outweighed by the benefit to consumers
(True/False): Ignorance of the law will shield you from liability if you are
noncompliant. - Correct Answer-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. -
Correct Answer-True
In a typical credit transaction the (bank)/(dealer) is the creditor. - Correct Answer-
The dealer is the creditor
What is a contract? - Correct Answer-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: - Correct Answer-1. Offer
2. Acceptance
3. Consideration
3|Page
, AFIP Certification Actual Exam Newest AFIP Certification Exam Preparation
An offer consists of three elements: - Correct Answer-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: - Correct Answer-1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: - Correct Answer-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 - Correct Answer-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. - Correct Answer-$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?" - Correct Answer-The parties to the contract
must be of legal age under the laws of the state in which the contract is written.
4|Page
