AFIP Certification Exam Questions & Answers
Latest Update
Terms in this set (465)
(True/False): Ignorance of the False
law will shield you from liability
if you are noncompliant.
(True/False): As an F&I manager True
working directly with customers,
you are individually responsible
for your actions and what you
say to each customer.
In a typical credit transaction The dealer is the creditor
the (bank)/(dealer) is the
creditor.
A contract is an agreement involving a promise or set of
What is a contract?
promises that the law enforces or protects.
1. Offer
The formation of a contract
2. Acceptance
requires three elements:
3. Consideration
1. An expression of a promise or commitment (intent) to enter a
contract
An offer consists of three
2. An expression of definite and certain terms
elements:
3. The communication of the offer to the offeree (in this case,
the customer)
1. An act of the parties
An offer may be terminated by:
2. The operation of law
, 1. The offer is accepted by one who is entitled to accept
There are three criteria for the 2. The acceptance takes the proper form and is timely
acceptance of an offer: 3. The terms of acceptance reflect closely the terms of the offer
and, therefore, do not amount to a counteroffer
Generally requires that all contracts involving the sale of goods
The Statute of Frauds
for a price of $500 or more be in writing.
The Statute of Frauds requires a $500
written contract for the sale of
goods for a price of ___ or
more.
What is required in order for the The parties to the contract must be of legal age under the laws
parties (the individuals entering of the state in which the contract is written.
into the contract) to have "legal
capacity?"
1. The need for a written agreement under the Statute of Frauds
Criteria that can block the and certain provisions of the Uniform Commercial Code (U.C.C.)
formation of a valid contract: 2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it The requirement that each party to the contract receives
applies to a contract? something of value in exchange for what is given.
The Finance Charge is the resulting dollar amount calculated by
Finance Charge applying the Annual Percentage Rate to the Amount Financed
over the term of the contract.
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
How the Itemization of Amount
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
Financed is completed
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
, Section A) General Information -- Identifies the parties to the
agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
4 Key Sections of an installment
sale contract
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 Promise to Pay - This section outlines the purpose of the
and promise to pay contained transaction and the primary obligations that will be incurred
in Section A of Retail Installment from signing the contract.
Form
The difference between full or Essentially determines the length of time, if any, the seller is
partial recourse and no responsible for the actions of the buyer.
recourse assignments.
Warranty disclaimers do not Manufacturer's
apply to ____ warranties on
new or used vehicles to which
that warranty still applies.
A(n) clause allows the Acceleration
creditor to declare the entire
outstanding balance due and
payable.
As recorded on an installment -Payments
sale agreement, the total sale -Downpayment
price or deferred contract price -Net Trade-In
would be the total of the _____ _.
Which is NOT listed as a Holder-in-Due Course Notice
mandated TILA box disclosure?
In most states, the _____ is Buyer's Guide
deemed to be part of the
purchase agreement.
(True/False) Because the late False
charges that may be imposed
on an installment sale
agreement are regulated at the
state level, the amount of the
late charge is NOT a required
disclosure item.
, At the time of consummation, an Customer, Dealer
installment sale contract is
between the ___ and the
_______.
The Truth in Lending Act and Personal, Family or Household
Reg. Z govern installment sale
transactions for vehicles
purchased for what type(s) of
uses?
What is always the largest The total sale price
number on an installment sale
agreement?
Allows the creditor to force place insurance - that is, buy
What does "force-placed" or physical damage insurance to cover the creditor's interest in the
"creditor-placed" mean? vehicle or the creditor's and the buyer's interest in the vehicle if
the buyer fails to do so.
(True/False) Installment sale True
agreements notify the customer
of the state's laws regarding
repossession and how (if
applicable) the customer can
redeem the vehicle or reinstate
the contract.
How are installment sale By federal and state law
contracts regulated?
(True/False) If the vehicle is True
declared a total loss, the
creditor may claim the
proceeds from the physical
damage insurance.
A fixed amount of money borrowed for a specified period of
Closed-End Credit time, such as for home mortgages, vehicle purchases and other
types of installment-based financing.
Transaction -- Loan
Document -- Note
Closed-End Credit Terminology
Cost of Credit -- Interest
(Customer Arranged)
Cost of credit stated as -- APR
Parties to the agreement -- Lender- customer
Latest Update
Terms in this set (465)
(True/False): Ignorance of the False
law will shield you from liability
if you are noncompliant.
(True/False): As an F&I manager True
working directly with customers,
you are individually responsible
for your actions and what you
say to each customer.
In a typical credit transaction The dealer is the creditor
the (bank)/(dealer) is the
creditor.
A contract is an agreement involving a promise or set of
What is a contract?
promises that the law enforces or protects.
1. Offer
The formation of a contract
2. Acceptance
requires three elements:
3. Consideration
1. An expression of a promise or commitment (intent) to enter a
contract
An offer consists of three
2. An expression of definite and certain terms
elements:
3. The communication of the offer to the offeree (in this case,
the customer)
1. An act of the parties
An offer may be terminated by:
2. The operation of law
, 1. The offer is accepted by one who is entitled to accept
There are three criteria for the 2. The acceptance takes the proper form and is timely
acceptance of an offer: 3. The terms of acceptance reflect closely the terms of the offer
and, therefore, do not amount to a counteroffer
Generally requires that all contracts involving the sale of goods
The Statute of Frauds
for a price of $500 or more be in writing.
The Statute of Frauds requires a $500
written contract for the sale of
goods for a price of ___ or
more.
What is required in order for the The parties to the contract must be of legal age under the laws
parties (the individuals entering of the state in which the contract is written.
into the contract) to have "legal
capacity?"
1. The need for a written agreement under the Statute of Frauds
Criteria that can block the and certain provisions of the Uniform Commercial Code (U.C.C.)
formation of a valid contract: 2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it The requirement that each party to the contract receives
applies to a contract? something of value in exchange for what is given.
The Finance Charge is the resulting dollar amount calculated by
Finance Charge applying the Annual Percentage Rate to the Amount Financed
over the term of the contract.
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
How the Itemization of Amount
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
Financed is completed
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
, Section A) General Information -- Identifies the parties to the
agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
4 Key Sections of an installment
sale contract
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 Promise to Pay - This section outlines the purpose of the
and promise to pay contained transaction and the primary obligations that will be incurred
in Section A of Retail Installment from signing the contract.
Form
The difference between full or Essentially determines the length of time, if any, the seller is
partial recourse and no responsible for the actions of the buyer.
recourse assignments.
Warranty disclaimers do not Manufacturer's
apply to ____ warranties on
new or used vehicles to which
that warranty still applies.
A(n) clause allows the Acceleration
creditor to declare the entire
outstanding balance due and
payable.
As recorded on an installment -Payments
sale agreement, the total sale -Downpayment
price or deferred contract price -Net Trade-In
would be the total of the _____ _.
Which is NOT listed as a Holder-in-Due Course Notice
mandated TILA box disclosure?
In most states, the _____ is Buyer's Guide
deemed to be part of the
purchase agreement.
(True/False) Because the late False
charges that may be imposed
on an installment sale
agreement are regulated at the
state level, the amount of the
late charge is NOT a required
disclosure item.
, At the time of consummation, an Customer, Dealer
installment sale contract is
between the ___ and the
_______.
The Truth in Lending Act and Personal, Family or Household
Reg. Z govern installment sale
transactions for vehicles
purchased for what type(s) of
uses?
What is always the largest The total sale price
number on an installment sale
agreement?
Allows the creditor to force place insurance - that is, buy
What does "force-placed" or physical damage insurance to cover the creditor's interest in the
"creditor-placed" mean? vehicle or the creditor's and the buyer's interest in the vehicle if
the buyer fails to do so.
(True/False) Installment sale True
agreements notify the customer
of the state's laws regarding
repossession and how (if
applicable) the customer can
redeem the vehicle or reinstate
the contract.
How are installment sale By federal and state law
contracts regulated?
(True/False) If the vehicle is True
declared a total loss, the
creditor may claim the
proceeds from the physical
damage insurance.
A fixed amount of money borrowed for a specified period of
Closed-End Credit time, such as for home mortgages, vehicle purchases and other
types of installment-based financing.
Transaction -- Loan
Document -- Note
Closed-End Credit Terminology
Cost of Credit -- Interest
(Customer Arranged)
Cost of credit stated as -- APR
Parties to the agreement -- Lender- customer
