1|Page
AFIP BASIC CERTIFICATION EXAM LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Which of the following events, if any, can terminate an offer? -
ANSWER-A. Death or insanity of an offeree or offeror
What is "consideration" as it applies to a contract? - ANSWER-A.
The requirement that each party to the contract receives
something of value in exchange for what is given
If a customer is re-contracted five days after the original
agreement was executed, how should the second agreement be
treated? - ANSWER-B. As an entirely new agreement, with the
date the second contract is executed recorded on the installment
sale agreement.
(True/False) TILA/Reg Z treats "loans" and "credit sales" the
same way since they are both essentially a promise to pay. -
ANSWER-False
,2|Page
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. - ANSWER-True
The CFPB issues UDAAP violations. UDAAP stands for: -
ANSWER-C. Unfair, Deceptive, Abusive, Acts or Practices
A contract can be defined as an agreement that includes: -
ANSWER-C. A promise or set of promises that the law enforces
or protects
Which of the following is considered a "credit sale" transaction
under TILA/Reg Z? - ANSWER-B. Karl arranges funding through
the F&I manager for a vehicle purchased at a dealership.
What is an acceleration clause? - ANSWER-B. If the customer
defaults under the contract, the lender can make the full
outstanding balance due and payable
,3|Page
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. - ANSWER-A. force place
What do the letters in UDAP stand for? - ANSWER-E. Unfair,
Deceptive, Acts, Practices
What are the three required elements of a contract? - ANSWER-
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer? - ANSWER-D.
All of the above
The __________ issues UDAP violations to dealers, the
__________ issues UDAAP violations to dealers. - ANSWER-A.
CFPB, FTC
(True/False) The dealer is the creditor in a typical credit
transaction. - ANSWER-True
, 4|Page
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? - ANSWER-D. None of the above
Which of the following transactions are NOT regulation by
TILA/Reg Z? - ANSWER-D. Both A and C
(True/False)
With the exception of some Precomputed Interest contracts used
by secondary finance sources, all other installment sales
contracts are simple interest or interest-bearing contracts. The
following is a layman's explanation of a simple interest installment
sale transaction. In a precomputed contract the finance charge is
computed on the assumption the contract will run full term. If the
customer terminates the agreement during the repayment term,
he will receive a refund of the unearned premium.
In a simple interest- or interest-bearing installment sale
agreement, the finance charge is computed daily and paid
AFIP BASIC CERTIFICATION EXAM LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Which of the following events, if any, can terminate an offer? -
ANSWER-A. Death or insanity of an offeree or offeror
What is "consideration" as it applies to a contract? - ANSWER-A.
The requirement that each party to the contract receives
something of value in exchange for what is given
If a customer is re-contracted five days after the original
agreement was executed, how should the second agreement be
treated? - ANSWER-B. As an entirely new agreement, with the
date the second contract is executed recorded on the installment
sale agreement.
(True/False) TILA/Reg Z treats "loans" and "credit sales" the
same way since they are both essentially a promise to pay. -
ANSWER-False
,2|Page
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. - ANSWER-True
The CFPB issues UDAAP violations. UDAAP stands for: -
ANSWER-C. Unfair, Deceptive, Abusive, Acts or Practices
A contract can be defined as an agreement that includes: -
ANSWER-C. A promise or set of promises that the law enforces
or protects
Which of the following is considered a "credit sale" transaction
under TILA/Reg Z? - ANSWER-B. Karl arranges funding through
the F&I manager for a vehicle purchased at a dealership.
What is an acceleration clause? - ANSWER-B. If the customer
defaults under the contract, the lender can make the full
outstanding balance due and payable
,3|Page
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. - ANSWER-A. force place
What do the letters in UDAP stand for? - ANSWER-E. Unfair,
Deceptive, Acts, Practices
What are the three required elements of a contract? - ANSWER-
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer? - ANSWER-D.
All of the above
The __________ issues UDAP violations to dealers, the
__________ issues UDAAP violations to dealers. - ANSWER-A.
CFPB, FTC
(True/False) The dealer is the creditor in a typical credit
transaction. - ANSWER-True
, 4|Page
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? - ANSWER-D. None of the above
Which of the following transactions are NOT regulation by
TILA/Reg Z? - ANSWER-D. Both A and C
(True/False)
With the exception of some Precomputed Interest contracts used
by secondary finance sources, all other installment sales
contracts are simple interest or interest-bearing contracts. The
following is a layman's explanation of a simple interest installment
sale transaction. In a precomputed contract the finance charge is
computed on the assumption the contract will run full term. If the
customer terminates the agreement during the repayment term,
he will receive a refund of the unearned premium.
In a simple interest- or interest-bearing installment sale
agreement, the finance charge is computed daily and paid
