AFIP CERTIFICATION EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
(True/False): Ignorance of the law will shield you from liability if you are noncompliant. -
ANS 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. - ANS True
In a typical credit transaction the (bank)/(dealer) is the creditor. - ANS The dealer is the
creditor
What is a contract? - ANS 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: - ANS 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - ANS 1. An expression of a promise or commitment
(intent) to enter a contract
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,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: - ANS 1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: - ANS 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 - ANS 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. - ANS $500
What is required in order for the parties (the individuals entering into the contract) to have
"legal capacity?" - ANS 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: - ANS 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
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,What is "consideration" as it applies to a contract? - ANS The requirement that each party to
the contract receives something of value in exchange for what is given.
Finance Charge - ANS 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 - ANS 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 - ANS 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 - ANS Promise to Pay - This section outlines the purpose of the transaction and the
primary obligations that will be incurred from signing the contract.
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, The difference between full or partial recourse and no recourse assignments. -
ANS 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. - ANS Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding balance due and
payable. - ANS Acceleration
As recorded on an installment sale agreement, the total sale price or deferred contract price
would be the total of the ________. - ANS -Payments
-Downpayment
-Net Trade-In
Which is NOT listed as a mandated TILA box disclosure? - ANS Holder-in-Due Course Notice
In most states, the _______ is deemed to be part of the purchase agreement. - ANS 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.
- ANS False
At the time of consummation, an installment sale contract is between the _______ and the
_______. - ANS Customer, Dealer
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QUESTIONS AND ANSWERS 100% PASS
2026/2027
(True/False): Ignorance of the law will shield you from liability if you are noncompliant. -
ANS 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. - ANS True
In a typical credit transaction the (bank)/(dealer) is the creditor. - ANS The dealer is the
creditor
What is a contract? - ANS 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: - ANS 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: - ANS 1. An expression of a promise or commitment
(intent) to enter a contract
@2026 ALLRIGHTS RESERVED 1
,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: - ANS 1. An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: - ANS 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 - ANS 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. - ANS $500
What is required in order for the parties (the individuals entering into the contract) to have
"legal capacity?" - ANS 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: - ANS 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
@2026 ALLRIGHTS RESERVED 2
,What is "consideration" as it applies to a contract? - ANS The requirement that each party to
the contract receives something of value in exchange for what is given.
Finance Charge - ANS 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 - ANS 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 - ANS 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 - ANS Promise to Pay - This section outlines the purpose of the transaction and the
primary obligations that will be incurred from signing the contract.
@2026 ALLRIGHTS RESERVED 3
, The difference between full or partial recourse and no recourse assignments. -
ANS 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. - ANS Manufacturer's
A(n) _______ clause allows the creditor to declare the entire outstanding balance due and
payable. - ANS Acceleration
As recorded on an installment sale agreement, the total sale price or deferred contract price
would be the total of the ________. - ANS -Payments
-Downpayment
-Net Trade-In
Which is NOT listed as a mandated TILA box disclosure? - ANS Holder-in-Due Course Notice
In most states, the _______ is deemed to be part of the purchase agreement. - ANS 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.
- ANS False
At the time of consummation, an installment sale contract is between the _______ and the
_______. - ANS Customer, Dealer
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