AFIP Certification Exam Questions with Latest Questions with Correct Answers

AFIP Certification Exam Questions with Latest Questions with Correct
Answers


Question 1:
(True/False): Ignorance of the law will shield you from liability if you are noncompliant.
Answer:
False


Question 2:
(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.
Answer:
True


Question 3:
In a typical credit transaction the (bank)/(dealer) is the creditor.
Answer:
The dealer is the creditor


Question 4:
What is a contract?
Answer:
A contract is an agreement involving a promise or set of promises that the law enforces or
protects.


Question 5:
The formation of a contract requires three elements:
Answer:
Offer
Acceptance
Consideration

,Question 6:
An offer consists of three elements:
Answer:
An expression of a promise or commitment (intent) to enter a contract
An expression of definite and certain terms
The communication of the offer to the offeree (in this case, the customer)


Question 7:
An offer may be terminated by:
Answer:
An act of the partiesThe operation of law


Question 8:
The offer is accepted by one who is entitled to accept
Answer:
There are three criteria for the acceptance of an offer:
The acceptance takes the proper form and is timely
The terms of acceptance reflect closely the terms of the offer and, therefore, do not amount to
a counteroffer


Question 9:
The Statute of Frauds
Answer:
Generally requires that all contracts involving the sale of goods for a price of $500 or more be in
writing.


Question 10:
The Statute of Frauds requires a written contract for the sale of goods for a price of or more.
Answer:
$500


Question 11:
What is required in order for the parties (the individuals entering into the contract) to have
"legal capacity?"
Answer:
The parties to the contract must be of legal age under the laws of the state in which the
contract is written.

,Question 12:
Criteria that can block the formation of a valid contract:
Answer:
The need for a written agreement under the Statute of Frauds and certain provisions of the
Uniform Commercial Code (U.C.C.)
The need for legal capacity of a party to contract


Question 13:
What is "consideration" as it applies to a contract?
Answer:
The requirement that each party to the contract receives something of value in exchange for
what is given.


Question 14:
Finance Charge
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.


Question 15:
How the Itemization of Amount Financed is completed
Answer:
1. Cash Price (Agreed to price of vehicle) Total Downpayment
Unpaid Balance of Cash Price(Cash Price-Downpayment) Other Charges (GAP, VSC, Etc.)
Amount Financed


Question 16:
4 Key Sections of an installment sale contract
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

, Question 17:
The introductory information and promise to pay contained in Section A of Retail Installment
Form
Answer:
Promise to Pay - This section outlines the purpose of the transaction and the primary
obligations that will be incurred from signing the contract.


Question 18:
The difference between full or partial recourse and no recourse assignments.
Answer:
Essentially determines the length of time, if any, the seller is responsible for the actions of the
buyer.


Question 19:
Warranty disclaimers do not apply to warranties on new or used vehicles to which that
warranty still applies.
Answer:
Manufacturer's


Question 20:
A(n) clause allows the creditor to declare the entire outstanding balance due and payable.
Answer:
Acceleration


Question 21:
As recorded on an installment sale agreement, the total sale price or deferred contract price
would be the total of the .
Answer:
-Payments
-Downpayment
-Net Trade-In


Question 22:
Which is NOT listed as a mandated TILA box disclosure?
Answer:
Holder-in-Due Course Notice