QUESTIONS & VERIFIED SOLUTIONS 100%
1. The issues UDAP violations to dealers,
CPFB, FTC
the
issues UDAAP violations to dealers.
False
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.
3. Which of the following events, if any, can terminate an A. Death or
insanity of an
offer? otteree or otteror
4. What is "consideration" as it applies to a contract? A. The requirement
that
each party to the
contract receives
something of val-ue in
exchange for what is
given
5. If a customer is re-contracted five days after the orig- B. As an
entirely new
inal agreement was executed, how should the second agreement,
with the date
agreement be treated? 7. Although
not
specifically
required by
6. (True/False) TILA/Reg Z treats "loans" and the TILA or
"credit sales" the same way since they are Reg Z., an
both essentially a promise to pay. installment
,AFIP - BASIC CERTIFICATION COURSE
QUESTIONS & VERIFIED SOLUTIONS 100%
sale contract may contain an accel-eration the second contract is
clause. This is a contract provision that allows exe-cuted recorded on
the funding source who accepted the the in-stallment sale
assignment of the installment sale agreement agreement.
to require the cus-
False
True
,AFIP - BASIC CERTIFICATION COURSE
QUESTIONS & VERIFIED SOLUTIONS 100%
tomer to pay all or part of the outstanding
balance if certain requirements are not met.
8. The CFPB issues UDAAP violations. UDAAP stands for: C. Unfair,
Deceptive, Abu-
sive, Acts or Practices
9. A contract can be defined as an agreement C. A promise or set
that in-cludes: of promises that the
law en-forces 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 A. force place
provision that allows the lender to
property
insurance if the customer fails to obtain
insurance or lets it lapse.
13. What do the letters in UDAP stand for? E. Unfair, Deceptive,
Acts, Practices
, AFIP - BASIC CERTIFICATION COURSE
QUESTIONS & VERIFIED SOLUTIONS 100%
14. What are the three required elements of a contract? D. An otter,
acceptance,
and consideration.
15. What are the criteria for "acceptance" of an offer? D. All of the above
16. A. CFPB, FTC