AFIP CERTIFICATION EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
What does UDAP stand for?
Unfair, Deceptive Acts or Practices
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter?
Attorney General
If we treat consumers fairly and ethically, then there is ______________ on the
government to enact legislation and write additional rules.
Less Pressure
Which organizations in our industry does the Federal Trade Commission (FTC)
oversee?
Franchise New Dealers
What does UDAAP stand for?
Unfair, Deceptive Abusive Acts or Practices
Which organizations in our industry does the Consumer Financial Protection
Bureau (CFPB) oversee?
Independent Used Dealers
Buy Here Pay Here (BHPH)
Lease Here Pay Here (LHPH)
Finance Sources
,When it comes to a RISC and a lease, the financial institution has a lien on the
vehicle. Why?
The vehicle is collateral (the thing of value)
What is the definition of a contract?
A promise or set of promises between two or more parties that is enforced by law
What does it mean to "force place" the insurance?
The finance source will purchase the required coverage and charge it to the customers
monthly payment
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter?
Attorney General
What does it mean to "Accelerate the Balance."
The finance source will make the full outstanding balance due and payable
What could block the formation of a valid contract?
Dishonesty with a Consumer or Customer
Misrepresentation of Facts or Statements
Fraudulent Inducement
Someone Lacks Mental Capacity
Underage
What does it mean to "educate the consumer before they consummate."
If a customer doesn't understand something in the contract, I should make an effort to
help them understand
If I don't know the answer to a term or condition on the contract I get upper
, management involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I am
administering
Help the customer to understand the terms and conditions of the contract by clarifying
key items they have concerns with
What is the right of recission?
The ability for a customer to get out of a contract
What are the three (3) steps in contracting?
Offer, Acceptance, Consideration
A "Credit Sale" is considered _________ and a "Loan" is considered __________.
Dealer Assisted Financing; Customer Arranged Financing
According to the federal requirements under TILA Reg Z. When do we use APR?
As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads
Printed dialog involving the finance charge
Conversations discussing the cost of credit
If a Dealer receives a cease and desist order for an ad they ran that violated the
Truth in Lending Act/Reg. Z. If the Dealer continues to run the ad, what are the
potential penalties?
They could be required to pay a fine of up to $51,744 per day, per violation
When it comes to negative equity, there are two mathematical computations we
can use; gross and net (netting). Which of the following are accurate.
The Gross format _____ math, the Net format _____ math.
WITH COMPLETE SOLUTIONS VERIFIED
What does UDAP stand for?
Unfair, Deceptive Acts or Practices
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter?
Attorney General
If we treat consumers fairly and ethically, then there is ______________ on the
government to enact legislation and write additional rules.
Less Pressure
Which organizations in our industry does the Federal Trade Commission (FTC)
oversee?
Franchise New Dealers
What does UDAAP stand for?
Unfair, Deceptive Abusive Acts or Practices
Which organizations in our industry does the Consumer Financial Protection
Bureau (CFPB) oversee?
Independent Used Dealers
Buy Here Pay Here (BHPH)
Lease Here Pay Here (LHPH)
Finance Sources
,When it comes to a RISC and a lease, the financial institution has a lien on the
vehicle. Why?
The vehicle is collateral (the thing of value)
What is the definition of a contract?
A promise or set of promises between two or more parties that is enforced by law
What does it mean to "force place" the insurance?
The finance source will purchase the required coverage and charge it to the customers
monthly payment
Who is the primary enforcer of consumer laws within a state. The organization a
dealer would most likely encounter?
Attorney General
What does it mean to "Accelerate the Balance."
The finance source will make the full outstanding balance due and payable
What could block the formation of a valid contract?
Dishonesty with a Consumer or Customer
Misrepresentation of Facts or Statements
Fraudulent Inducement
Someone Lacks Mental Capacity
Underage
What does it mean to "educate the consumer before they consummate."
If a customer doesn't understand something in the contract, I should make an effort to
help them understand
If I don't know the answer to a term or condition on the contract I get upper
, management involved to help explain it
It is my responsibility to understand the terms and conditions on the contracts I am
administering
Help the customer to understand the terms and conditions of the contract by clarifying
key items they have concerns with
What is the right of recission?
The ability for a customer to get out of a contract
What are the three (3) steps in contracting?
Offer, Acceptance, Consideration
A "Credit Sale" is considered _________ and a "Loan" is considered __________.
Dealer Assisted Financing; Customer Arranged Financing
According to the federal requirements under TILA Reg Z. When do we use APR?
As a disclosure on the installment contract
Only in installment advertising, it is not required in lease ads
Printed dialog involving the finance charge
Conversations discussing the cost of credit
If a Dealer receives a cease and desist order for an ad they ran that violated the
Truth in Lending Act/Reg. Z. If the Dealer continues to run the ad, what are the
potential penalties?
They could be required to pay a fine of up to $51,744 per day, per violation
When it comes to negative equity, there are two mathematical computations we
can use; gross and net (netting). Which of the following are accurate.
The Gross format _____ math, the Net format _____ math.
