025/2026 AFIP CERTIFICATION EXAM
2
WITH Q&A 100% VERIFIED ANSWER
he ________ issues UDAP violations to dealers, the ________ issues UDAAP
T
violations to dealers.
CPFB, FTC
3 multiple choice options
(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
1 multiple choice option
Which of the following events, if any, can terminate an offer?
A. Death or insanity of an offeree or offeror
3 multiple choice options
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
3 multiple choice options
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.
1 multiple choice option
(True/False) TILA/Reg Z treats "loans" and "credit sales" the same way since they are
both essentially a promise to pay.
False
1 multiple choice option
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
1 multiple choice option
The CFPB issues UDAAP violations. UDAAP stands for:
C. Unfair, Deceptive, Abusive, Acts or Practices
, multiple choice options
2
A contract can be defined as an agreement that includes:
C. A promise or set of promises that the law enforces or protects
3 multiple choice options
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.
1 multiple choice option
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full outstanding
balance due and payable
2 multiple choice options
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
2 multiple choice options
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
3 multiple choice options
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
3 multiple choice options
What are the criteria for "acceptance" of an offer?
D. All of the above
3 multiple choice options
The __________ issues UDAP violations to dealers, the __________ issues UDAAP
violations to dealers.
A. CFPB, FTC
3 multiple choice options
(True/False) The dealer is the creditor in a typical credit transaction.
True
1 multiple choice option
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
3 multiple choice options
Which of the following transactions are NOT regulation by TILA/Reg Z?
D. Both A and C
3 multiple choice options
(True/False)
, ith the exception of some Precomputed Interest contracts used by secondary finance
W
sources, all other installment sales contracts are simple interest 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 finance 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
1 multiple choice option
Which of the following regulations implements the Truth in Lending Act?
D. Regulation Z
3 multiple choice options
(True/False)
he Truth in Lending Act (TILA) is implemented by Regulation Z
T
True
1 multiple choice option
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
3 multiple choice options
(True/False)
tate law can require additional disclosures beyond those mandated by the TILA, Reg.
S
Z
True
1 multiple choice option
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box items:
. The amount financed
A
B. The total of the payments
2
WITH Q&A 100% VERIFIED ANSWER
he ________ issues UDAP violations to dealers, the ________ issues UDAAP
T
violations to dealers.
CPFB, FTC
3 multiple choice options
(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
1 multiple choice option
Which of the following events, if any, can terminate an offer?
A. Death or insanity of an offeree or offeror
3 multiple choice options
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
3 multiple choice options
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.
1 multiple choice option
(True/False) TILA/Reg Z treats "loans" and "credit sales" the same way since they are
both essentially a promise to pay.
False
1 multiple choice option
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
1 multiple choice option
The CFPB issues UDAAP violations. UDAAP stands for:
C. Unfair, Deceptive, Abusive, Acts or Practices
, multiple choice options
2
A contract can be defined as an agreement that includes:
C. A promise or set of promises that the law enforces or protects
3 multiple choice options
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.
1 multiple choice option
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full outstanding
balance due and payable
2 multiple choice options
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
2 multiple choice options
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
3 multiple choice options
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
3 multiple choice options
What are the criteria for "acceptance" of an offer?
D. All of the above
3 multiple choice options
The __________ issues UDAP violations to dealers, the __________ issues UDAAP
violations to dealers.
A. CFPB, FTC
3 multiple choice options
(True/False) The dealer is the creditor in a typical credit transaction.
True
1 multiple choice option
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
3 multiple choice options
Which of the following transactions are NOT regulation by TILA/Reg Z?
D. Both A and C
3 multiple choice options
(True/False)
, ith the exception of some Precomputed Interest contracts used by secondary finance
W
sources, all other installment sales contracts are simple interest 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 finance 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
1 multiple choice option
Which of the following regulations implements the Truth in Lending Act?
D. Regulation Z
3 multiple choice options
(True/False)
he Truth in Lending Act (TILA) is implemented by Regulation Z
T
True
1 multiple choice option
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
3 multiple choice options
(True/False)
tate law can require additional disclosures beyond those mandated by the TILA, Reg.
S
Z
True
1 multiple choice option
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box items:
. The amount financed
A
B. The total of the payments
