AFIP - BASIC CERTIFICATION COURSE | 2025 LATEST UPDATED|
COMPLETE QUESTIONS AND ANSWERS | 100% RATED CORRECT | 100%
VERFIED | ALREADY GRADED A+|GET A+
1. The ________ issues UDAP violations to dealers, the ________ issues
UDAAP violations to dealers.: CPFB, FTC
2. (True/False) If circumstances require that a second lease agreement be
executed - the customer must be recontracted - the date recorded on the
second agreement must be the date of the original contract.: False
3. Which of the following events, if any, can terminate an offer?: A. Death or
insanity of an offeree or offeror
4. What is "consideration" as it applies to a contract?: A. The requirement that
each party to the contract receives something of value in exchange for what is
given 5. If a customer is re-contracted five days after the original agreement
was executed, how should the second agreement be treated?: B. As an
entirely new agreement, with the date the second contract is executed recorded
on the installment sale agreement.
,6. (True/False) TILA/Reg Z treats "loans" and "credit sales" the same way
since they are both essentially a promise to pay.: False
7. Although not specifically required by the TILA or Reg Z., an installment
sale contract may contain an acceleration clause. This is a contract provision
that allows the funding source who accepted the assignment of the
installment sale agreement to require the customer to pay all or part of the
outstanding balance if certain requirements are not met.: True
8. The CFPB issues UDAAP violations. UDAAP stands for:: C. Unfair,
Deceptive, Abusive, Acts or Practices
9. A contract can be defined as an agreement that includes:: C. A promise or
set of promises that the law enforces or protects
10. Which of the following is considered a "credit sale" transaction under
TILA/Reg Z?: B. Karl arranges funding through the F&I manager for a vehicle
purchased at a dealership.
11. What is an acceleration clause?: B. If the customer defaults under the
contract, the lender can make the full outstanding balance due and payable
12. An installment sale contract may contain a provision that allows the
lender to _______ property insurance if the customer fails to obtain insurance
or lets it lapse.: A. force place
,13. What do the letters in UDAP stand for?: E. Unfair, Deceptive, Acts, Practices
14. What are the three required elements of a contract?: D. An offer,
acceptance, and consideration.
15. What are the criteria for "acceptance" of an offer?: D. All of the above
16. The __________ issues UDAP violations to dealers, the __________ issues
UDAAP violations to dealers.: A. CFPB, FTC
17. (True/False) The dealer is the creditor in a typical credit transaction.: True
18. As noted in the Truth in Lending Act and Reg. Z, if the customer owes more
on the trade-in than the used car manager allowed, should the F&I
manager do?: D. None of the above
19. Which of the following transactions are NOT regulation by TILA/Reg Z?:
D. Both A and C
20. (True/False)
With the exception of some Precomputed Interest contracts used by
secondary finance sources, all other installment sales contracts are simple
interest or interest-bearing contracts. The following is a layman's explanation
of a simple interest installment sale transaction. In a precomputed contract
the finance charge is computed on the assumption the contract will run full
, term. If the customer terminates the agreement during the repayment term, he
will receive a refund of the unearned premium.
In a simple interest- or interest-bearing installment sale agreement, the
finance charge is computed daily and paid monthly throughout the term of
the agreement. If the customer pays-off the vehicle before the scheduled end
of the contract there is unearned finance charge money to refund, but it has
been each month the contract has been in force. There is no refund of the
unearned finance charge.: True
21. Which of the following regulations implements the Truth in Lending Act?:
D. Regulation Z
22. (True/False)
The Truth in Lending Act (TILA) is implemented by Regulation Z: True
23. THE APR is a mandated disclosure. It must be used in oral discussion with
a customer, in funding-related advertisements, and on the retail
installment
sale agreement. A customer asks, what does the APR mean? Your response
should be:: B. That's the "cost of credit" as a yearly rate
24. (True/False)
COMPLETE QUESTIONS AND ANSWERS | 100% RATED CORRECT | 100%
VERFIED | ALREADY GRADED A+|GET A+
1. The ________ issues UDAP violations to dealers, the ________ issues
UDAAP violations to dealers.: CPFB, FTC
2. (True/False) If circumstances require that a second lease agreement be
executed - the customer must be recontracted - the date recorded on the
second agreement must be the date of the original contract.: False
3. Which of the following events, if any, can terminate an offer?: A. Death or
insanity of an offeree or offeror
4. What is "consideration" as it applies to a contract?: A. The requirement that
each party to the contract receives something of value in exchange for what is
given 5. If a customer is re-contracted five days after the original agreement
was executed, how should the second agreement be treated?: B. As an
entirely new agreement, with the date the second contract is executed recorded
on the installment sale agreement.
,6. (True/False) TILA/Reg Z treats "loans" and "credit sales" the same way
since they are both essentially a promise to pay.: False
7. Although not specifically required by the TILA or Reg Z., an installment
sale contract may contain an acceleration clause. This is a contract provision
that allows the funding source who accepted the assignment of the
installment sale agreement to require the customer to pay all or part of the
outstanding balance if certain requirements are not met.: True
8. The CFPB issues UDAAP violations. UDAAP stands for:: C. Unfair,
Deceptive, Abusive, Acts or Practices
9. A contract can be defined as an agreement that includes:: C. A promise or
set of promises that the law enforces or protects
10. Which of the following is considered a "credit sale" transaction under
TILA/Reg Z?: B. Karl arranges funding through the F&I manager for a vehicle
purchased at a dealership.
11. What is an acceleration clause?: B. If the customer defaults under the
contract, the lender can make the full outstanding balance due and payable
12. An installment sale contract may contain a provision that allows the
lender to _______ property insurance if the customer fails to obtain insurance
or lets it lapse.: A. force place
,13. What do the letters in UDAP stand for?: E. Unfair, Deceptive, Acts, Practices
14. What are the three required elements of a contract?: D. An offer,
acceptance, and consideration.
15. What are the criteria for "acceptance" of an offer?: D. All of the above
16. The __________ issues UDAP violations to dealers, the __________ issues
UDAAP violations to dealers.: A. CFPB, FTC
17. (True/False) The dealer is the creditor in a typical credit transaction.: True
18. As noted in the Truth in Lending Act and Reg. Z, if the customer owes more
on the trade-in than the used car manager allowed, should the F&I
manager do?: D. None of the above
19. Which of the following transactions are NOT regulation by TILA/Reg Z?:
D. Both A and C
20. (True/False)
With the exception of some Precomputed Interest contracts used by
secondary finance sources, all other installment sales contracts are simple
interest or interest-bearing contracts. The following is a layman's explanation
of a simple interest installment sale transaction. In a precomputed contract
the finance charge is computed on the assumption the contract will run full
, term. If the customer terminates the agreement during the repayment term, he
will receive a refund of the unearned premium.
In a simple interest- or interest-bearing installment sale agreement, the
finance charge is computed daily and paid monthly throughout the term of
the agreement. If the customer pays-off the vehicle before the scheduled end
of the contract there is unearned finance charge money to refund, but it has
been each month the contract has been in force. There is no refund of the
unearned finance charge.: True
21. Which of the following regulations implements the Truth in Lending Act?:
D. Regulation Z
22. (True/False)
The Truth in Lending Act (TILA) is implemented by Regulation Z: True
23. THE APR is a mandated disclosure. It must be used in oral discussion with
a customer, in funding-related advertisements, and on the retail
installment
sale agreement. A customer asks, what does the APR mean? Your response
should be:: B. That's the "cost of credit" as a yearly rate
24. (True/False)
