AFIP - BASIC CERTIFICATION COURSE EXAM
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
The ________ issues UDAP violations to dealers, the ________ issues UDAAP
violations to dealers.
CPFB, FTC
(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
Which of the following events, if any, can terminate an offer?
A. Death or insanity of an offeree or offeror
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
If a customer is re-contracted five days after the original agreement was
executed, how should the second agreement be treated?
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.
False
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
The CFPB issues UDAAP violations. UDAAP stands for:
C. Unfair, Deceptive, Abusive, Acts or Practices
A contract can be defined as an agreement that includes:
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?
B. Karl arranges funding through the F&I manager for a vehicle purchased at a
dealership.
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full outstanding
balance due and payable
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
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer?
D. All of the above
The __________ issues UDAP violations to dealers, the __________ issues
UDAAP violations to dealers.
A. CFPB, FTC
(True/False) The dealer is the creditor in a typical credit transaction.
True
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
Which of the following transactions are NOT regulation by TILA/Reg Z?
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
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
The ________ issues UDAP violations to dealers, the ________ issues UDAAP
violations to dealers.
CPFB, FTC
(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
Which of the following events, if any, can terminate an offer?
A. Death or insanity of an offeree or offeror
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
If a customer is re-contracted five days after the original agreement was
executed, how should the second agreement be treated?
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.
False
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
The CFPB issues UDAAP violations. UDAAP stands for:
C. Unfair, Deceptive, Abusive, Acts or Practices
A contract can be defined as an agreement that includes:
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?
B. Karl arranges funding through the F&I manager for a vehicle purchased at a
dealership.
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full outstanding
balance due and payable
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
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer?
D. All of the above
The __________ issues UDAP violations to dealers, the __________ issues
UDAAP violations to dealers.
A. CFPB, FTC
(True/False) The dealer is the creditor in a typical credit transaction.
True
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
Which of the following transactions are NOT regulation by TILA/Reg Z?
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
