AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
The ________ issues UDAP violations to dealers, the ________ issues UDAAP 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?
,AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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
2 multiple choice options
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
,AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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.
, AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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?
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
The ________ issues UDAP violations to dealers, the ________ issues UDAAP 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?
,AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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
2 multiple choice options
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
,AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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.
, AFIP - Basic Certification Course | Questions and
accurate Answers| Latest 2026/ 2027 Update
|Grade A+ (100% Correct Elaborations)
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?
