AFIP Certification Exam Questions with Latest Questions with Correct
Answers
Question 1:
What does UDAP stand for?
Answer:
Unfair, Deceptive Acts or Practices
Question 2:
Who is the primary enforcer of consumer laws within a state. The organization a dealer would
most likely encounter?
Answer:
Attorney General
Question 3:
If we treat consumers fairly and ethically, then there is on the government to enact legislation
and write additional rules.
Answer:
Less Pressure
Question 4:
Which organizations in our industry does the Federal Trade Commission (FTC) oversee?
Answer:
Franchise New Dealers
Question 5:
What does UDAAP stand for?
Answer:
Unfair, Deceptive Abusive Acts or Practices
Question 6:
Which organizations in our industry does the Consumer Financial Protection Bureau (CFPB)
oversee?
Answer:
Independent Used Dealers
Buy Here Pay Here (BHPH) Lease Here Pay Here (LHPH) Finance Sources
,Question 7:
When it comes to a RISC and a lease, the financial institution has a lien on the vehicle. Why?
Answer:
The vehicle is collateral (the thing of value)
Question 8:
What is the definition of a contract?
Answer:
A promise or set of promises between two or more parties that is enforced by law
Question 9:
What does it mean to "force place" the insurance?
Answer:
The finance source will purchase the required coverage and charge it to the customers monthly
payment
Question 10:
What does it mean to "Accelerate the Balance."
Answer:
The finance source will make the full outstanding balance due and payable
Question 11:
What could block the formation of a valid contract?
Answer:
Dishonesty with a Consumer or Customer
Misrepresentation of Facts or Statements Fraudulent Inducement Someone Lacks Mental
Capacity Underage
Question 12:
What does it mean to "educate the consumer before they consummate."
Answer:
If a customer doesn't understand something in the contract, I should make an effort to help
them understand
, Question 13:
If I don't know the answer to a term or condition on the contract I get upper management
involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I am
administering Help the customer to understand the terms and conditions of the contract by
clarifying key items they have concerns with
What is the right of recission?
Answer:
The ability for a customer to get out of a contract
Question 14:
What are the three (3) steps in contracting?
Answer:
Offer, Acceptance, Consideration
Question 15:
A "Credit Sale" is considered and a "Loan" is considered .
Answer:
Dealer Assisted Financing; Customer Arranged Financing
Question 16:
According to the federal requirements under TILA Reg Z. When do we use APR?
Answer:
As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads Printed dialog involving the
finance charge
Conversations discussing the cost of credit
Question 17:
If a Dealer receives a cease and desist order for an ad they ran that violated the Truth in
Lending Act/Reg. Z. If the Dealer continues to run the ad, what are the potential penalties?
Answer:
They could be required to pay a fine of up to $51,744 per day, per violationThey could be
required to pay a fine of up to $51,744 per day, per violation
They could be required to pay a fine of up to $51,744 per day, per violation
They could be required to pay a fine of up to $51,744 per day, per violation
Answers
Question 1:
What does UDAP stand for?
Answer:
Unfair, Deceptive Acts or Practices
Question 2:
Who is the primary enforcer of consumer laws within a state. The organization a dealer would
most likely encounter?
Answer:
Attorney General
Question 3:
If we treat consumers fairly and ethically, then there is on the government to enact legislation
and write additional rules.
Answer:
Less Pressure
Question 4:
Which organizations in our industry does the Federal Trade Commission (FTC) oversee?
Answer:
Franchise New Dealers
Question 5:
What does UDAAP stand for?
Answer:
Unfair, Deceptive Abusive Acts or Practices
Question 6:
Which organizations in our industry does the Consumer Financial Protection Bureau (CFPB)
oversee?
Answer:
Independent Used Dealers
Buy Here Pay Here (BHPH) Lease Here Pay Here (LHPH) Finance Sources
,Question 7:
When it comes to a RISC and a lease, the financial institution has a lien on the vehicle. Why?
Answer:
The vehicle is collateral (the thing of value)
Question 8:
What is the definition of a contract?
Answer:
A promise or set of promises between two or more parties that is enforced by law
Question 9:
What does it mean to "force place" the insurance?
Answer:
The finance source will purchase the required coverage and charge it to the customers monthly
payment
Question 10:
What does it mean to "Accelerate the Balance."
Answer:
The finance source will make the full outstanding balance due and payable
Question 11:
What could block the formation of a valid contract?
Answer:
Dishonesty with a Consumer or Customer
Misrepresentation of Facts or Statements Fraudulent Inducement Someone Lacks Mental
Capacity Underage
Question 12:
What does it mean to "educate the consumer before they consummate."
Answer:
If a customer doesn't understand something in the contract, I should make an effort to help
them understand
, Question 13:
If I don't know the answer to a term or condition on the contract I get upper management
involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I am
administering Help the customer to understand the terms and conditions of the contract by
clarifying key items they have concerns with
What is the right of recission?
Answer:
The ability for a customer to get out of a contract
Question 14:
What are the three (3) steps in contracting?
Answer:
Offer, Acceptance, Consideration
Question 15:
A "Credit Sale" is considered and a "Loan" is considered .
Answer:
Dealer Assisted Financing; Customer Arranged Financing
Question 16:
According to the federal requirements under TILA Reg Z. When do we use APR?
Answer:
As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads Printed dialog involving the
finance charge
Conversations discussing the cost of credit
Question 17:
If a Dealer receives a cease and desist order for an ad they ran that violated the Truth in
Lending Act/Reg. Z. If the Dealer continues to run the ad, what are the potential penalties?
Answer:
They could be required to pay a fine of up to $51,744 per day, per violationThey could be
required to pay a fine of up to $51,744 per day, per violation
They could be required to pay a fine of up to $51,744 per day, per violation
They could be required to pay a fine of up to $51,744 per day, per violation
