AFIP Certification Actual Exam NEWEST 2025 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
What is a contract? - CORRECT 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: - CORRECT ANSWER- 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - CORRECT 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: - CORRECT ANSWER- 1. An act of the parties
2. The operation of law
,There are three criteria for the acceptance of an offer: - CORRECT 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 - CORRECT 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. - CORRECT ANSWER- $500
What is required in order for the parties (the individuals entering into the contract) to have
"legal capacity?" - CORRECT 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: - CORRECT 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? - CORRECT ANSWER- The requirement that
each party to the contract receives something of value in exchange for what is given.
Finance Charge - CORRECT 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.
,(True/False): Ignorance of the law will shield you from liability if you are noncompliant. -
CORRECT 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. - CORRECT ANSWER- True
In a typical credit transaction the (bank)/(dealer) is the creditor. - CORRECT ANSWER- The
dealer is the creditor
How the Itemization of Amount Financed is completed - CORRECT 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 - CORRECT 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 - CORRECT 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. - CORRECT
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. - CORRECT ANSWER- Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding balance due and
payable. - CORRECT ANSWER- Acceleration
As recorded on an installment sale agreement, the total sale price or deferred contract price
would be the total of the ________. - CORRECT ANSWER- -Payments
-Downpayment
-Net Trade-In
Which is NOT listed as a mandated TILA box disclosure? - CORRECT ANSWER- Holder-in-Due
Course Notice
In most states, the _______ is deemed to be part of the purchase agreement. - CORRECT
ANSWER- Buyer's Guide
(True/False) Because the 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. - CORRECT ANSWER- False
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
What is a contract? - CORRECT 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: - CORRECT ANSWER- 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - CORRECT 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: - CORRECT ANSWER- 1. An act of the parties
2. The operation of law
,There are three criteria for the acceptance of an offer: - CORRECT 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 - CORRECT 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. - CORRECT ANSWER- $500
What is required in order for the parties (the individuals entering into the contract) to have
"legal capacity?" - CORRECT 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: - CORRECT 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? - CORRECT ANSWER- The requirement that
each party to the contract receives something of value in exchange for what is given.
Finance Charge - CORRECT 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.
,(True/False): Ignorance of the law will shield you from liability if you are noncompliant. -
CORRECT 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. - CORRECT ANSWER- True
In a typical credit transaction the (bank)/(dealer) is the creditor. - CORRECT ANSWER- The
dealer is the creditor
How the Itemization of Amount Financed is completed - CORRECT 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 - CORRECT 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 - CORRECT 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. - CORRECT
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. - CORRECT ANSWER- Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding balance due and
payable. - CORRECT ANSWER- Acceleration
As recorded on an installment sale agreement, the total sale price or deferred contract price
would be the total of the ________. - CORRECT ANSWER- -Payments
-Downpayment
-Net Trade-In
Which is NOT listed as a mandated TILA box disclosure? - CORRECT ANSWER- Holder-in-Due
Course Notice
In most states, the _______ is deemed to be part of the purchase agreement. - CORRECT
ANSWER- Buyer's Guide
(True/False) Because the 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. - CORRECT ANSWER- False
