AFIP - Basic Certification V1 | Exam Questions
and Answers| Latest Update 2025/2026
| Graded A+ | 100% Correct
What is "consideration" as it applies to a contract?
The requirement that each party to the contract receives something of value in exchange for what
is given.
What does the Disposal Rule require?
Requires entities that possess consumer information to properly dispose of such information by
taking reasonable measures to protect against unauthorized access to, or use of, this information.
(True/False) In short, the use of any or a portion of the customer information provided while
completing a credit application should be considered nonpublic personal information. True
Which federal regulation governs the use of fax machines for advertising?
Telephone Consumer Protection Act & Junk Fax Prevention Act
In a typical credit transaction the (bank)/(dealer) is the creditor.
The dealer is the creditor
What is a contract?
A contract is an agreement involving a promise or set of promises that the law enforces or
protects.
, AFIP - Basic Certification V1 | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A (100% Correct)
What is the safe harbor for multi-business emails?
There is a safe harbor if your mechanism for processing opt-out requests is taken out by a
technical difficulty.
The formation of a contract requires three elements:
1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements:
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)
What are the statutes behind the IRS/FinCEN Form 8300?
-The USA Patriot Act of 2001 increased the scope of these related laws to help trace funds used
for terrorism.
-The IRS's 8300 Reporting Rule
An offer may be terminated by:
1. An act of the parties
2. The operation of law
,There are three criteria for the acceptance of an offer:
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
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. $500
What is required in order for the parties (the individuals entering into the contract) to have "legal
capacity?"
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:
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
, AFIP - Basic Certification V1 | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A (100% Correct)
(True/False): Ignorance of the law will shield you from liability if you are noncompliant. 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.
True
Finance Charge
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
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
Section A) General Information -- Identifies the parties to the agreement.
and Answers| Latest Update 2025/2026
| Graded A+ | 100% Correct
What is "consideration" as it applies to a contract?
The requirement that each party to the contract receives something of value in exchange for what
is given.
What does the Disposal Rule require?
Requires entities that possess consumer information to properly dispose of such information by
taking reasonable measures to protect against unauthorized access to, or use of, this information.
(True/False) In short, the use of any or a portion of the customer information provided while
completing a credit application should be considered nonpublic personal information. True
Which federal regulation governs the use of fax machines for advertising?
Telephone Consumer Protection Act & Junk Fax Prevention Act
In a typical credit transaction the (bank)/(dealer) is the creditor.
The dealer is the creditor
What is a contract?
A contract is an agreement involving a promise or set of promises that the law enforces or
protects.
, AFIP - Basic Certification V1 | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A (100% Correct)
What is the safe harbor for multi-business emails?
There is a safe harbor if your mechanism for processing opt-out requests is taken out by a
technical difficulty.
The formation of a contract requires three elements:
1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements:
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)
What are the statutes behind the IRS/FinCEN Form 8300?
-The USA Patriot Act of 2001 increased the scope of these related laws to help trace funds used
for terrorism.
-The IRS's 8300 Reporting Rule
An offer may be terminated by:
1. An act of the parties
2. The operation of law
,There are three criteria for the acceptance of an offer:
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
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. $500
What is required in order for the parties (the individuals entering into the contract) to have "legal
capacity?"
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:
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
, AFIP - Basic Certification V1 | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A (100% Correct)
(True/False): Ignorance of the law will shield you from liability if you are noncompliant. 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.
True
Finance Charge
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
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
Section A) General Information -- Identifies the parties to the agreement.
