AFIP Certification Actual Exam Study
Guide (Questions and Answers) Expert
Graded A+ | Latest Edition
1. What are the three elements of a contract - ANSWER A. Offer
B. Acceptance
C. Consideration
2. if a vehicle on the lot qualifies for a service contract - ANSWER you must
indicated on the contract that it is eligible for the service contract
3. There are two websites on the buyer’s guide - ANSWER 1) how to get the
history on the vehicle
2) How to find out if any open recalls have been issued
4. The Financial Privacy Rule States: - ANSWER You give a privacy notice to
all Customers
5. financial privacy safe harbor requirement - ANSWER Dealer must print the
privacy notice on a form bill
6. financial privacy safeguards rule states: - ANSWER the seller must protect
the information given by the customer
7. any information found on the internet is: - ANSWER public information
,8. financial privacy safeguards rule requirements: - ANSWER - ensure the
security and confidentiality of customer information
- ensure the protection of this information from anticipated threats and
hazards
- ensure the protection against unauthorized access
9. Under the safeguards rule, the following practices must be taken: -
ANSWER - appoint a corporate security officer
- Have a written information security procedure
10.Failure to comply with privacy rule and safeguards rule: - ANSWER -
Enforcement by the FTC
- a UDAP claim can be assessed
11.Disposal Rule: - ANSWER Disposal of NPI and alignment with privacy
rules even when hiring a destruction company
12.Red-Flags Rule requirements: - ANSWER - Make certain that the person
giving the information is legitimately the person
- you must appoint a corporate security officer
- implement a written identity theft prevention program
13.What is in the Red-Flags Program: - ANSWER - Identify relevant red-flags
- Detect and evaluate red-flags
- Respond to suspected and detected red-flags
14.An initial or active duty fraud alert stays in effect for: - ANSWER 1 year
15.an extended fraud alert stays in effect for: - ANSWER 7 years
,16.if you file a fraud alert with one credit reporting agency then? - ANSWER
all others will be notified
17.how much do fraud alerts cost? - ANSWER $0
18.How to give credit to a customer with an extended fraud alert? - ANSWER
you must confirm with the customer that they are the one that gave the PIN
19.How much do credit freezes cost? - ANSWER $0
20.Vehicle conditions on the buyer’s guide - ANSWER You must have an
updated condition report on the buyer’s guide
21.on the back of the buyer’s guide: complaints after sale contact lists: -
ANSWER 1) the dealership rep name
2) Phone number
3) Job Title
22.Third party warranty company disclosures: - ANSWER 1) check "no dealer
warranty" Box
2) Check "Other used vehicle warranty" Box
23.The maximum penalty for violating the used car rule is: - ANSWER
$43,792
24.IRS 8300 Form: What is Cash? - ANSWER 1) Cashier’s Check
2) Bank Draft
, 3) Travelers Check
4)the amount of $9,500 but this is not required to be submitted to the 8300
25.Which of the following requires IRS 8300: - ANSWER - The customer paid
$15,000 cash down but the sale did not take place
26.Buy Here Pay Here 8300: - ANSWER The total amount received in cash in
a 12 month period that is over $10,000 needs to be listed on the IRS 8300
27.How to identify the customer on the IRS 8300 Form? - ANSWER - SSN
- ITIN
- EIN
28.Suspicious Transaction IRS 8300 Form requirements: - ANSWER - You
cannot tell the customer you filled out the 8300 form
- you do not send the customer a letter explaining the form was
submitted
29.Non-resident alien identification - ANSWER - Passport number
- Driver’s License number
30.What happens when a customer refuses to give SSN number: - ANSWER
write on the form "customer refused to give SSN" and get their drivers
license number
31.negligent failure to fill out form IRS8300: - ANSWER Fined $280 per
return
Guide (Questions and Answers) Expert
Graded A+ | Latest Edition
1. What are the three elements of a contract - ANSWER A. Offer
B. Acceptance
C. Consideration
2. if a vehicle on the lot qualifies for a service contract - ANSWER you must
indicated on the contract that it is eligible for the service contract
3. There are two websites on the buyer’s guide - ANSWER 1) how to get the
history on the vehicle
2) How to find out if any open recalls have been issued
4. The Financial Privacy Rule States: - ANSWER You give a privacy notice to
all Customers
5. financial privacy safe harbor requirement - ANSWER Dealer must print the
privacy notice on a form bill
6. financial privacy safeguards rule states: - ANSWER the seller must protect
the information given by the customer
7. any information found on the internet is: - ANSWER public information
,8. financial privacy safeguards rule requirements: - ANSWER - ensure the
security and confidentiality of customer information
- ensure the protection of this information from anticipated threats and
hazards
- ensure the protection against unauthorized access
9. Under the safeguards rule, the following practices must be taken: -
ANSWER - appoint a corporate security officer
- Have a written information security procedure
10.Failure to comply with privacy rule and safeguards rule: - ANSWER -
Enforcement by the FTC
- a UDAP claim can be assessed
11.Disposal Rule: - ANSWER Disposal of NPI and alignment with privacy
rules even when hiring a destruction company
12.Red-Flags Rule requirements: - ANSWER - Make certain that the person
giving the information is legitimately the person
- you must appoint a corporate security officer
- implement a written identity theft prevention program
13.What is in the Red-Flags Program: - ANSWER - Identify relevant red-flags
- Detect and evaluate red-flags
- Respond to suspected and detected red-flags
14.An initial or active duty fraud alert stays in effect for: - ANSWER 1 year
15.an extended fraud alert stays in effect for: - ANSWER 7 years
,16.if you file a fraud alert with one credit reporting agency then? - ANSWER
all others will be notified
17.how much do fraud alerts cost? - ANSWER $0
18.How to give credit to a customer with an extended fraud alert? - ANSWER
you must confirm with the customer that they are the one that gave the PIN
19.How much do credit freezes cost? - ANSWER $0
20.Vehicle conditions on the buyer’s guide - ANSWER You must have an
updated condition report on the buyer’s guide
21.on the back of the buyer’s guide: complaints after sale contact lists: -
ANSWER 1) the dealership rep name
2) Phone number
3) Job Title
22.Third party warranty company disclosures: - ANSWER 1) check "no dealer
warranty" Box
2) Check "Other used vehicle warranty" Box
23.The maximum penalty for violating the used car rule is: - ANSWER
$43,792
24.IRS 8300 Form: What is Cash? - ANSWER 1) Cashier’s Check
2) Bank Draft
, 3) Travelers Check
4)the amount of $9,500 but this is not required to be submitted to the 8300
25.Which of the following requires IRS 8300: - ANSWER - The customer paid
$15,000 cash down but the sale did not take place
26.Buy Here Pay Here 8300: - ANSWER The total amount received in cash in
a 12 month period that is over $10,000 needs to be listed on the IRS 8300
27.How to identify the customer on the IRS 8300 Form? - ANSWER - SSN
- ITIN
- EIN
28.Suspicious Transaction IRS 8300 Form requirements: - ANSWER - You
cannot tell the customer you filled out the 8300 form
- you do not send the customer a letter explaining the form was
submitted
29.Non-resident alien identification - ANSWER - Passport number
- Driver’s License number
30.What happens when a customer refuses to give SSN number: - ANSWER
write on the form "customer refused to give SSN" and get their drivers
license number
31.negligent failure to fill out form IRS8300: - ANSWER Fined $280 per
return
