AFIP CERTIFICATION EXAM 2025 WITH 100%
ACCURATE SOLUTIONS
(True/False): Ignorance of the law will shield you from liability if you
are noncompliant. - Precise Answer ✔✔False
(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. - Precise Answer ✔✔True
In a typical credit transaction the (bank)/(dealer) is the creditor. - Precise
Answer ✔✔The dealer is the creditor
What is a contract? - Precise Answer ✔✔A contract is an agreement
involving a promise or set of promises that the law enforces or protects.
The formation of a contract requires three elements: - Precise Answer
✔✔1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - Precise Answer ✔✔1. An
expression of a promise or commitment (intent) to enter a contract
2. An expression of definite and certain terms
,3. The communication of the offer to the offeree (in this case, the
customer)
An offer may be terminated by: - Precise Answer ✔✔1. An act of the
parties
2. The operation of law
There are three criteria for the acceptance of an offer: - Precise Answer
✔✔1. The offer is accepted by one who is entitled to accept
2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the offer and,
therefore, do not amount to a counteroffer
The Statute of Frauds - Precise Answer ✔✔Generally requires that all
contracts involving the sale of goods for a price of $500 or more be in
writing.
The Statute of Frauds requires a written contract for the sale of goods for
a price of _______ or more. - Precise Answer ✔✔$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?" - Precise Answer ✔✔The parties to
the contract must be of legal age under the laws of the state in which the
contract is written.
,Criteria that can block the formation of a valid contract: - Precise
Answer ✔✔1. The need for a written agreement under the Statute of
Frauds and certain provisions of the Uniform Commercial Code
(U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it applies to a contract? - Precise Answer
✔✔The requirement that each party to the contract receives something
of value in exchange for what is given.
Finance Charge - Precise 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.
How the Itemization of Amount Financed is completed - Precise Answer
✔✔1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract - Precise 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
The introductory information and promise to pay contained in Section A
of Retail Installment Form - Precise Answer ✔✔Promise to Pay - This
section outlines the purpose of the transaction and the primary
obligations that will be incurred from signing the contract.
The difference between full or partial recourse and no recourse
assignments. - Precise Answer ✔✔Essentially determines the length of
time, if any, the seller is responsible for the actions of the buyer.
Warranty disclaimers do not apply to _______ warranties on new or
used vehicles to which that warranty still applies. - Precise Answer
✔✔Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding
balance due and payable. - Precise Answer ✔✔Acceleration
As recorded on an installment sale agreement, the total sale price or
deferred contract price would be the total of the ________. - Precise
Answer ✔✔-Payments
ACCURATE SOLUTIONS
(True/False): Ignorance of the law will shield you from liability if you
are noncompliant. - Precise Answer ✔✔False
(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. - Precise Answer ✔✔True
In a typical credit transaction the (bank)/(dealer) is the creditor. - Precise
Answer ✔✔The dealer is the creditor
What is a contract? - Precise Answer ✔✔A contract is an agreement
involving a promise or set of promises that the law enforces or protects.
The formation of a contract requires three elements: - Precise Answer
✔✔1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - Precise Answer ✔✔1. An
expression of a promise or commitment (intent) to enter a contract
2. An expression of definite and certain terms
,3. The communication of the offer to the offeree (in this case, the
customer)
An offer may be terminated by: - Precise Answer ✔✔1. An act of the
parties
2. The operation of law
There are three criteria for the acceptance of an offer: - Precise Answer
✔✔1. The offer is accepted by one who is entitled to accept
2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the offer and,
therefore, do not amount to a counteroffer
The Statute of Frauds - Precise Answer ✔✔Generally requires that all
contracts involving the sale of goods for a price of $500 or more be in
writing.
The Statute of Frauds requires a written contract for the sale of goods for
a price of _______ or more. - Precise Answer ✔✔$500
What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?" - Precise Answer ✔✔The parties to
the contract must be of legal age under the laws of the state in which the
contract is written.
,Criteria that can block the formation of a valid contract: - Precise
Answer ✔✔1. The need for a written agreement under the Statute of
Frauds and certain provisions of the Uniform Commercial Code
(U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it applies to a contract? - Precise Answer
✔✔The requirement that each party to the contract receives something
of value in exchange for what is given.
Finance Charge - Precise 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.
How the Itemization of Amount Financed is completed - Precise Answer
✔✔1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract - Precise 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
The introductory information and promise to pay contained in Section A
of Retail Installment Form - Precise Answer ✔✔Promise to Pay - This
section outlines the purpose of the transaction and the primary
obligations that will be incurred from signing the contract.
The difference between full or partial recourse and no recourse
assignments. - Precise Answer ✔✔Essentially determines the length of
time, if any, the seller is responsible for the actions of the buyer.
Warranty disclaimers do not apply to _______ warranties on new or
used vehicles to which that warranty still applies. - Precise Answer
✔✔Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding
balance due and payable. - Precise Answer ✔✔Acceleration
As recorded on an installment sale agreement, the total sale price or
deferred contract price would be the total of the ________. - Precise
Answer ✔✔-Payments
