AFIP - Basic Certification Course
Study online at https://quizlet.com/_cxqhsm
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
, AFIP - Basic Certification Course
Study online at https://quizlet.com/_cxqhsm
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 sec-
ondary finance sources, all other installment sales contracts are simple inter-
est 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 fi-
nance 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)
State law can require additional disclosures beyond those mandated by the
TILA, Reg. Z: True
25. (True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box
items:
Study online at https://quizlet.com/_cxqhsm
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
, AFIP - Basic Certification Course
Study online at https://quizlet.com/_cxqhsm
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 sec-
ondary finance sources, all other installment sales contracts are simple inter-
est 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 fi-
nance 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)
State law can require additional disclosures beyond those mandated by the
TILA, Reg. Z: True
25. (True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box
items:
