AFIP Certification Exam - Questions With
Comprehensive Solutions
Save
Terms in this set (465)
(True/False): Ignorance of False
the law will shield you
from liability if you are
noncompliant.
(True/False): As an F&I True
manager working directly
with customers, you are
individually responsible
for your actions and what
you say to each customer.
In a typical credit The dealer is the creditor
transaction the
(bank)/(dealer) is the
creditor.
A contract is an agreement involving a promise or set
What is a contract?
of promises that the law enforces or protects.
The formation of a 1. Offer
contract requires three 2. Acceptance
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)
,An offer may be 1. An act of the parties
terminated by: 2. The operation of law
1. The offer is accepted by one who is entitled to
accept
There are three criteria for
2. The acceptance takes the proper form and is timely
the acceptance of an
3. The terms of acceptance reflect closely the terms
offer:
of the offer and, therefore, do not amount to a
counteroffer
Generally requires that all contracts involving the sale
The Statute of Frauds
of goods for a price of $500 or more be in writing.
The Statute of Frauds $500
requires a written contract
for the sale of goods for a
price of _______ or more.
What is required in order The parties to the contract must be of legal age under
for the parties (the the laws of the state in which the contract is written.
individuals entering into
the contract) to have
"legal capacity?"
1. The need for a written agreement under the Statute
Criteria that can block the of Frauds and certain provisions of the Uniform
formation of a valid Commercial Code (U.C.C.)
contract: 2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
The requirement that each party to the contract
What is "consideration" as
receives something of value in exchange for what is
it applies to a contract?
given.
The Finance Charge is the resulting dollar amount
Finance Charge calculated by 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
3. Unpaid Balance of Cash Price(Cash Price-
Amount Financed is
Downpayment)
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 Promise to Pay - This section outlines the purpose of
information and promise the transaction and the primary obligations that will
to pay contained in be incurred from signing the contract.
Section A of Retail
Installment Form
The difference between Essentially determines the length of time, if any, the
full or partial recourse and seller is responsible for the actions of the buyer.
no recourse assignments.
Warranty disclaimers do Manufacturer's
not apply to _______
warranties on new or used
vehicles to which that
warranty still applies.
A(n) _______ clause allows Acceleration
the creditor to declare the
entire outstanding
balance due and payable.
, As recorded on an -Payments
installment sale -Downpayment
agreement, the total sale -Net Trade-In
price or deferred contract
price 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 False
late 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 Customer, Dealer
consummation, an
installment sale contract is
between the _______ and the
_______.
The Truth in Lending Act Personal, Family or Household
and 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?
Comprehensive Solutions
Save
Terms in this set (465)
(True/False): Ignorance of False
the law will shield you
from liability if you are
noncompliant.
(True/False): As an F&I True
manager working directly
with customers, you are
individually responsible
for your actions and what
you say to each customer.
In a typical credit The dealer is the creditor
transaction the
(bank)/(dealer) is the
creditor.
A contract is an agreement involving a promise or set
What is a contract?
of promises that the law enforces or protects.
The formation of a 1. Offer
contract requires three 2. Acceptance
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)
,An offer may be 1. An act of the parties
terminated by: 2. The operation of law
1. The offer is accepted by one who is entitled to
accept
There are three criteria for
2. The acceptance takes the proper form and is timely
the acceptance of an
3. The terms of acceptance reflect closely the terms
offer:
of the offer and, therefore, do not amount to a
counteroffer
Generally requires that all contracts involving the sale
The Statute of Frauds
of goods for a price of $500 or more be in writing.
The Statute of Frauds $500
requires a written contract
for the sale of goods for a
price of _______ or more.
What is required in order The parties to the contract must be of legal age under
for the parties (the the laws of the state in which the contract is written.
individuals entering into
the contract) to have
"legal capacity?"
1. The need for a written agreement under the Statute
Criteria that can block the of Frauds and certain provisions of the Uniform
formation of a valid Commercial Code (U.C.C.)
contract: 2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
The requirement that each party to the contract
What is "consideration" as
receives something of value in exchange for what is
it applies to a contract?
given.
The Finance Charge is the resulting dollar amount
Finance Charge calculated by 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
3. Unpaid Balance of Cash Price(Cash Price-
Amount Financed is
Downpayment)
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 Promise to Pay - This section outlines the purpose of
information and promise the transaction and the primary obligations that will
to pay contained in be incurred from signing the contract.
Section A of Retail
Installment Form
The difference between Essentially determines the length of time, if any, the
full or partial recourse and seller is responsible for the actions of the buyer.
no recourse assignments.
Warranty disclaimers do Manufacturer's
not apply to _______
warranties on new or used
vehicles to which that
warranty still applies.
A(n) _______ clause allows Acceleration
the creditor to declare the
entire outstanding
balance due and payable.
, As recorded on an -Payments
installment sale -Downpayment
agreement, the total sale -Net Trade-In
price or deferred contract
price 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 False
late 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 Customer, Dealer
consummation, an
installment sale contract is
between the _______ and the
_______.
The Truth in Lending Act Personal, Family or Household
and 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?
