AFIP Certification (questions with complete
solutions) graded A+
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 you say to each customer.
The dealer is the creditor
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 of
promises that the law enforces or protects.
5. The formation of a contract re- 1. Otter
quires three elements: 2. Acceptance
3. Consideration
6. An offer consists of three ele- 1. An expression of a promise or commitment (intent) to
ments: enter a contract
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 the 1. The otter is accepted by one who is entitled to accept
acceptance of an offer: 2. The acceptance takes the proper form and is timely
,AFIP Certification (questions with complete
solutions) graded A+
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 of
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 for- 1. The need for a written agreement under the Statute of
mation of a valid contract: 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
13. What is "consideration" as it ap- The requirement that each party to the contract receives
plies to a contract? something of value in exchange for what is given.
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 1. Cash Price (Agreed to price of vehicle)
Financed is completed 2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpay-
ment)
,AFIP Certification (questions with complete
solutions) graded A+
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
16. 4 Key Sections of an installment Section A) General Information -- Identifies the parties to
sale contract the agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
Section C) Insurance-Related Disclosures --Credit insurance
is optional
Section D) Signature Blocks - Notice to Buyer Disclosures
--Bind all parties to contract
17. The introductory information Promise to Pay - This section outlines the purpose of the
and promise to pay contained in transaction and the primary obligations that will be incurred
Section A of Retail Installment from signing the contract.
Form
18. The difference between full or Essentially determines the length of time, if any, the seller
partial recourse and no re- is responsible for the actions of the buyer.
course assignments.
19. Warranty disclaimers do not ap- Manufacturer's
ply to warranties on new
or used vehicles to which that
warranty still applies.
20. A(n) clause allows the outstanding balance due and
creditor to declare the entire payable.
,AFIP Certification (questions with complete
solutions) graded A+
Acceleration
solutions) graded A+
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 you say to each customer.
The dealer is the creditor
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 of
promises that the law enforces or protects.
5. The formation of a contract re- 1. Otter
quires three elements: 2. Acceptance
3. Consideration
6. An offer consists of three ele- 1. An expression of a promise or commitment (intent) to
ments: enter a contract
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 the 1. The otter is accepted by one who is entitled to accept
acceptance of an offer: 2. The acceptance takes the proper form and is timely
,AFIP Certification (questions with complete
solutions) graded A+
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 of
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 for- 1. The need for a written agreement under the Statute of
mation of a valid contract: 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
13. What is "consideration" as it ap- The requirement that each party to the contract receives
plies to a contract? something of value in exchange for what is given.
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 1. Cash Price (Agreed to price of vehicle)
Financed is completed 2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpay-
ment)
,AFIP Certification (questions with complete
solutions) graded A+
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
16. 4 Key Sections of an installment Section A) General Information -- Identifies the parties to
sale contract the agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
Section C) Insurance-Related Disclosures --Credit insurance
is optional
Section D) Signature Blocks - Notice to Buyer Disclosures
--Bind all parties to contract
17. The introductory information Promise to Pay - This section outlines the purpose of the
and promise to pay contained in transaction and the primary obligations that will be incurred
Section A of Retail Installment from signing the contract.
Form
18. The difference between full or Essentially determines the length of time, if any, the seller
partial recourse and no re- is responsible for the actions of the buyer.
course assignments.
19. Warranty disclaimers do not ap- Manufacturer's
ply to warranties on new
or used vehicles to which that
warranty still applies.
20. A(n) clause allows the outstanding balance due and
creditor to declare the entire payable.
,AFIP Certification (questions with complete
solutions) graded A+
Acceleration
