AFIP FEDERAL EXAM PART 1
QUESTIONS AND ANSWERS (GRADED
A)
Federal Trade Commission - ANSWER-What does FTC stand for?
Franchise New - ANSWER-What does the FTC manage?
Consumer Financial Protection Bureau - ANSWER-What does CFPB stand for?
Independent Used, buy here pay here, finance sources - ANSWER-What does CFPB
manage?
$51,744 - ANSWER-FTC 2024 fine for violations
Unfair Deceptive Acts or Practices - ANSWER-What does UDAP stand for?
Unfair Deceptive Abusive Acts or Practices - ANSWER-What does UDAAP stand for?
FTC - ANSWER-What department is UDAP typically charged by?
CFPB - ANSWER-What department is UDAAP typically charged by?
treating customer unethically or providing false or misleading info - ANSWER-How to
get hit with UDAP/UDAAP?
signed by the customer - ANSWER-You cannot enforce a contract unless it's been
______________________.
offer acceptance consideration - ANSWER-3 elements of a contract
something of value has to be exchanged - ANSWER-What makes a consideration in a
contract?
comprehensive and collision - ANSWER-2 types of insurance to protect against loss?
comprehensive - ANSWER-Which insurance protects against acts of god, such as hail,
weather, etc.?
collision - ANSWER-Which insurance pays for damages in crashes?
, forceplace insurance - ANSWER-What is it called when the bank adds a premium to the
payment in case of a lack of insurance?
accelerate balance - ANSWER-What is it called when the bank calls for the balance to
be due because of lack of insurance from customer?
forceplace insurance and accelerate balance - ANSWER-2 ways to protect ourselves or
bank when it comes to insurance on a vehicle?
right of recission - ANSWER-What is the ability to get out of a contract?
no - ANSWER-Do most finance sources allow a right of recission?
customer - ANSWER-Who owns the vehicle during repayment term of the installment
contract?
security interest - ANSWER-The finance source maintains a
________________________ during an installment contract repayment.
lien on the title - ANSWER-The finance source maintains a security interest during a
contracted loan, and this is reflected on the ____________________.
Truth & Lending Act - ANSWER-TILA stands for?
Reg Z - ANSWER-The TILA is also known as _____________.
total sale price - ANSWER-What is the largest # on the installment contract?
total of payments, cash down, and net trade in - ANSWER-What makes up the total sale
price on an installment contract?
customer and dealer only - ANSWER-At the time of signing at the dealership, the
installment contract is between the...
deferred down payment - ANSWER-A hold check is also known as...
before the 2nd scheduled payment - ANSWER-In a deferred down payment, you must
process the check....
finance charge - ANSWER-You CANNOT assess a ___________________ on a
deferred down payment.
no - ANSWER-In a deferred down payment, is the check included in the amount
financed?
QUESTIONS AND ANSWERS (GRADED
A)
Federal Trade Commission - ANSWER-What does FTC stand for?
Franchise New - ANSWER-What does the FTC manage?
Consumer Financial Protection Bureau - ANSWER-What does CFPB stand for?
Independent Used, buy here pay here, finance sources - ANSWER-What does CFPB
manage?
$51,744 - ANSWER-FTC 2024 fine for violations
Unfair Deceptive Acts or Practices - ANSWER-What does UDAP stand for?
Unfair Deceptive Abusive Acts or Practices - ANSWER-What does UDAAP stand for?
FTC - ANSWER-What department is UDAP typically charged by?
CFPB - ANSWER-What department is UDAAP typically charged by?
treating customer unethically or providing false or misleading info - ANSWER-How to
get hit with UDAP/UDAAP?
signed by the customer - ANSWER-You cannot enforce a contract unless it's been
______________________.
offer acceptance consideration - ANSWER-3 elements of a contract
something of value has to be exchanged - ANSWER-What makes a consideration in a
contract?
comprehensive and collision - ANSWER-2 types of insurance to protect against loss?
comprehensive - ANSWER-Which insurance protects against acts of god, such as hail,
weather, etc.?
collision - ANSWER-Which insurance pays for damages in crashes?
, forceplace insurance - ANSWER-What is it called when the bank adds a premium to the
payment in case of a lack of insurance?
accelerate balance - ANSWER-What is it called when the bank calls for the balance to
be due because of lack of insurance from customer?
forceplace insurance and accelerate balance - ANSWER-2 ways to protect ourselves or
bank when it comes to insurance on a vehicle?
right of recission - ANSWER-What is the ability to get out of a contract?
no - ANSWER-Do most finance sources allow a right of recission?
customer - ANSWER-Who owns the vehicle during repayment term of the installment
contract?
security interest - ANSWER-The finance source maintains a
________________________ during an installment contract repayment.
lien on the title - ANSWER-The finance source maintains a security interest during a
contracted loan, and this is reflected on the ____________________.
Truth & Lending Act - ANSWER-TILA stands for?
Reg Z - ANSWER-The TILA is also known as _____________.
total sale price - ANSWER-What is the largest # on the installment contract?
total of payments, cash down, and net trade in - ANSWER-What makes up the total sale
price on an installment contract?
customer and dealer only - ANSWER-At the time of signing at the dealership, the
installment contract is between the...
deferred down payment - ANSWER-A hold check is also known as...
before the 2nd scheduled payment - ANSWER-In a deferred down payment, you must
process the check....
finance charge - ANSWER-You CANNOT assess a ___________________ on a
deferred down payment.
no - ANSWER-In a deferred down payment, is the check included in the amount
financed?
