AFIP Certification Exam Questions With
Correct Answers
(True/False): Ignorance of the law will shield you from liability if you are
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noncompliant. - CORRECT ANSWER✔✔-False | | |
(True/False): As an F&I manager working directly with customers, you
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are individually responsible for your actions and what you say to each
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customer. - CORRECT ANSWER✔✔-True
| | |
In a typical credit transaction the (bank)/(dealer) is the creditor. -
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CORRECT ANSWER✔✔-The dealer is the creditor
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What is a contract? - CORRECT ANSWER✔✔-A contract is an agreement
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involving a promise or set of promises that the law enforces or protects.
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The formation of a contract requires three elements: - CORRECT
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ANSWER✔✔-1. Offer |
2. Acceptance
|
3. Consideration
|
,An offer consists of three elements: - CORRECT ANSWER✔✔-1. An
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expression of a promise or commitment (intent) to enter a contract
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2. An expression of definite and certain terms
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3. The communication of the offer to the offeree (in this case, the
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customer)
An offer may be terminated by: - CORRECT ANSWER✔✔-1. An act of the
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parties
|
2. The operation of law
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There are three criteria for the acceptance of an offer: - CORRECT
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ANSWER✔✔-1. The offer is accepted by one who is entitled to accept | | | | | | | | | | |
2. The acceptance takes the proper form and is timely
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3. The terms of acceptance reflect closely the terms of the offer and,
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therefore, do not amount to a counteroffer
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The Statute of Frauds - CORRECT ANSWER✔✔-Generally requires that
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all contracts involving the sale of goods for a price of $500 or more be in
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writing.
|
The Statute of Frauds requires a written contract for the sale of goods
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for a price of _______ or more. - CORRECT ANSWER✔✔-$500
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,What is required in order for the parties (the individuals entering into
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the contract) to have "legal capacity?" - CORRECT ANSWER✔✔-The
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parties to the contract must be of legal age under the laws of the state
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in which the contract is written.
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Criteria that can block the formation of a valid contract: - CORRECT
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ANSWER✔✔-1. The need for a written agreement under the Statute of | | | | | | | | | | |
Frauds and certain provisions of the Uniform Commercial Code (U.C.C.)
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2. The need for legal capacity of a party to contract
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3. The act of fraudulent inducement
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What is "consideration" as it applies to a contract? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-The requirement that each party to the contract receives | | | | | | | | |
something of value in exchange for what is given.
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Finance Charge - CORRECT ANSWER✔✔-The Finance Charge is the
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resulting dollar amount calculated by applying the Annual Percentage
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Rate to the Amount Financed over the term of the contract.
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How the Itemization of Amount Financed is completed - CORRECT
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ANSWER✔✔-1. Cash Price (Agreed to price of vehicle) | | | | | | | |
2. Total Downpayment
| | |
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
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4. Other Charges (GAP, VSC, Etc.)
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, 5. Amount Financed
| |
4 Key Sections of an installment sale contract - CORRECT ANSWER✔✔-
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Section A) General Information -- Identifies the parties to the
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agreement. |
Section B) Mandated Disclosures -- Disclosures required by TILA
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Section C) Insurance-Related Disclosures --Credit insurance is optional
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Section D) Signature Blocks - Notice to Buyer Disclosures --Bind all
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parties to contract | |
The introductory information and promise to pay contained in Section A
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of Retail Installment Form - CORRECT ANSWER✔✔-Promise to Pay - This
| | | | | | | | | |
section outlines the purpose of the transaction and the primary
| | | | | | | | | | |
obligations that will be incurred from signing the contract.
| | | | | | | |
The difference between full or partial recourse and no recourse
| | | | | | | | | |
assignments. - CORRECT ANSWER✔✔-Essentially determines the length
| | | | | | |
of time, if any, the seller is responsible for the actions of the buyer.
| | | | | | | | | | | | |
Correct Answers
(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
|
,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.
| | | | |
Criteria that can block the formation of a valid contract: - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-1. The need for a written agreement under the Statute of | | | | | | | | | | |
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
| | | | |
What is "consideration" as it applies to a contract? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-The requirement that each party to the contract receives | | | | | | | | |
something of value in exchange for what is given.
| | | | | | | |
Finance Charge - CORRECT ANSWER✔✔-The Finance Charge is the
| | | | | | | | |
resulting dollar amount calculated by applying the Annual Percentage
| | | | | | | | |
Rate to the Amount Financed over the term of the contract.
| | | | | | | | | |
How the Itemization of Amount Financed is completed - CORRECT
| | | | | | | | | |
ANSWER✔✔-1. Cash Price (Agreed to price of vehicle) | | | | | | | |
2. Total Downpayment
| | |
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
| | | | | |
4. Other Charges (GAP, VSC, Etc.)
| | | | |
, 5. Amount Financed
| |
4 Key Sections of an installment sale contract - CORRECT ANSWER✔✔-
| | | | | | | | | |
Section A) General Information -- Identifies the parties to 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 | |
The introductory information and promise to pay contained in Section A
| | | | | | | | | | |
of Retail Installment Form - CORRECT ANSWER✔✔-Promise to Pay - This
| | | | | | | | | |
section outlines the purpose of the transaction and the primary
| | | | | | | | | | |
obligations that will be incurred from signing the contract.
| | | | | | | |
The difference between full or partial recourse and no recourse
| | | | | | | | | |
assignments. - CORRECT ANSWER✔✔-Essentially determines the length
| | | | | | |
of time, if any, the seller is responsible for the actions of the buyer.
| | | | | | | | | | | | |
