AFIP Certification FINAL EXAM GUIDE
QUESTIONS WITH CORRECT DETAILED
ANSWERS LATEST UPDATE THIS YEAR
SURE TO PASS - JUST RELEASED.
What is always the largest number on an installment sale
agreement? - ANSWER ✓ The total sale price
(True/False) Most courts take the position that if there are
any indicators that the mileage is inaccurate, the dealer
must take the appropriate steps to confirm that the
mileage on the vehicle is correct. - ANSWER ✓ True
(True/False) A transfer under the FOA excludes gifts. -
ANSWER ✓ False
(True/False) When surrendering the vehicle, a lessor may
require a lessee to complete a Lessor- Lessee Odometer
Disclosure on its behalf. - ANSWER ✓ True
The statute of limitations under the FOA is _______. -
ANSWER ✓ 2 Years
, (True/False) If an off-lease vehicle is sold to a buyer off
the street or to the person who leased the vehicle (the
lessee), an FOA odometer disclosure statement is
required. - ANSWER ✓ True
Dealers are required to keep odometer disclosure records
on file for _______. - ANSWER ✓ 5 Years
Implied Warranties - ANSWER ✓ Unspoken, unwritten
promises, created by state law, that go from you, as a
seller or merchant, to your customers.
Two types of implied warranties - ANSWER ✓ 1. Implied
warranty of merchantability
2. Implied warranty of fitness for a particular purpose
Implied warranty of merchantability - ANSWER ✓ A
merchant's basic promise that the goods sold will do what
they are supposed to do and that there is nothing
significantly wrong with them. In other words, it is an
implied promise that the goods are fit to be sold.
, Implied warranty of fitness for a particular purpose -
ANSWER ✓ A promise that the law says you, as a seller,
make when your customer relies on your advice that a
product can be used for some specific purpose.
State statutes of limitations for breach of either an
express or an implied warranty - ANSWER ✓ 4 Years from
date of purchase
Express Waranties - ANSWER ✓ Promises and
statements that you voluntarily make about your product
or about your commitment to remedy the defects and
malfunctions that some customers may experience.
Magnuson-Moss Warranty Act - ANSWER ✓ Passed by
Congress in 1975, the Act requires manufacturers and
sellers of consumer products to provide consumers with
detailed information about warranty coverage.
The three basic requirements under the MMWA -
ANSWER ✓ 1. As a warrantor, you must designate, or title,
your written warranty as either "full" or "limited."
, 2. As a warrantor, you must state certain specified
information about the coverage of your warranty in a
single, clear, and easy-to-read document.
3. As a warrantor or a seller, you must ensure that
warranties are available where your warranted consumer
products are sold so that consumers can read them before
buying.
Full Warranty vs. Limited Warranty - ANSWER ✓ "Full
Warranty" means the coverage meets the federal
minimum standards for comprehensive warranties, while
"Limited Warranty" means the coverage does not.
Warranty disclosure requirements - ANSWER ✓ 1. What
does the warranty cover/not cover?
2. What is the period of coverage?
3. What will you do to correct problems?
4. How can the customer get warranty service?
5. How will state law affect your customer's rights under
the warranty?
QUESTIONS WITH CORRECT DETAILED
ANSWERS LATEST UPDATE THIS YEAR
SURE TO PASS - JUST RELEASED.
What is always the largest number on an installment sale
agreement? - ANSWER ✓ The total sale price
(True/False) Most courts take the position that if there are
any indicators that the mileage is inaccurate, the dealer
must take the appropriate steps to confirm that the
mileage on the vehicle is correct. - ANSWER ✓ True
(True/False) A transfer under the FOA excludes gifts. -
ANSWER ✓ False
(True/False) When surrendering the vehicle, a lessor may
require a lessee to complete a Lessor- Lessee Odometer
Disclosure on its behalf. - ANSWER ✓ True
The statute of limitations under the FOA is _______. -
ANSWER ✓ 2 Years
, (True/False) If an off-lease vehicle is sold to a buyer off
the street or to the person who leased the vehicle (the
lessee), an FOA odometer disclosure statement is
required. - ANSWER ✓ True
Dealers are required to keep odometer disclosure records
on file for _______. - ANSWER ✓ 5 Years
Implied Warranties - ANSWER ✓ Unspoken, unwritten
promises, created by state law, that go from you, as a
seller or merchant, to your customers.
Two types of implied warranties - ANSWER ✓ 1. Implied
warranty of merchantability
2. Implied warranty of fitness for a particular purpose
Implied warranty of merchantability - ANSWER ✓ A
merchant's basic promise that the goods sold will do what
they are supposed to do and that there is nothing
significantly wrong with them. In other words, it is an
implied promise that the goods are fit to be sold.
, Implied warranty of fitness for a particular purpose -
ANSWER ✓ A promise that the law says you, as a seller,
make when your customer relies on your advice that a
product can be used for some specific purpose.
State statutes of limitations for breach of either an
express or an implied warranty - ANSWER ✓ 4 Years from
date of purchase
Express Waranties - ANSWER ✓ Promises and
statements that you voluntarily make about your product
or about your commitment to remedy the defects and
malfunctions that some customers may experience.
Magnuson-Moss Warranty Act - ANSWER ✓ Passed by
Congress in 1975, the Act requires manufacturers and
sellers of consumer products to provide consumers with
detailed information about warranty coverage.
The three basic requirements under the MMWA -
ANSWER ✓ 1. As a warrantor, you must designate, or title,
your written warranty as either "full" or "limited."
, 2. As a warrantor, you must state certain specified
information about the coverage of your warranty in a
single, clear, and easy-to-read document.
3. As a warrantor or a seller, you must ensure that
warranties are available where your warranted consumer
products are sold so that consumers can read them before
buying.
Full Warranty vs. Limited Warranty - ANSWER ✓ "Full
Warranty" means the coverage meets the federal
minimum standards for comprehensive warranties, while
"Limited Warranty" means the coverage does not.
Warranty disclosure requirements - ANSWER ✓ 1. What
does the warranty cover/not cover?
2. What is the period of coverage?
3. What will you do to correct problems?
4. How can the customer get warranty service?
5. How will state law affect your customer's rights under
the warranty?
