AFIP CERTIFICATION EXAM PRACTICE QUESTIONS WITH VERIFIED SOLUTIONS NEW MODIFIED GRADED A+

AFIP CERTIFICATION EXAM PRACTICE
QUESTIONS WITH VERIFIED SOLUTIONS NEW
MODIFIED GRADED A+


There are three criteria for the acceptance of an offer: --CORRECT ANSWER--
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 --CORRECT ANSWER--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. --CORRECT ANSWER--$500



What is required in order for the parties (the individuals entering into the
contract) to have "legal capacity?" --CORRECT ANSWER--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: --CORRECT
ANSWER--1. The need for a written agreement under the Statute of Frauds and
certain provisions of the Uniform Commercial Code (U.C.C.)

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,2. The need for legal capacity of a party to contract

3. The act of fraudulent inducement



What is "consideration" as it applies to a contract? --CORRECT ANSWER--
The requirement that each party to the contract receives something of value in
exchange for what is given.



Finance Charge --CORRECT ANSWER--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 --CORRECT
ANSWER--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




(True/False): Ignorance of the law will shield you from liability if you are
noncompliant. --CORRECT ANSWER--False




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,(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. --
CORRECT ANSWER--True



In a typical credit transaction the (bank)/(dealer) is the creditor. --CORRECT
ANSWER--The dealer is the creditor



What is a contract? --CORRECT ANSWER--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: --CORRECT ANSWER--1.
Offer

2. Acceptance

3. Consideration



An offer consists of three elements: --CORRECT ANSWER--1. An expression
of a promise or commitment (intent) to enter a contract

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: --CORRECT ANSWER--1. An act of the
parties

2. The operation of law


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, 4 Key Sections of an installment sale contract --CORRECT ANSWER--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 --CORRECT ANSWER--Promise to Pay - This section
outlines the purpose of the transaction and the primary obligations that will be
incurred from signing the contract.



The difference between full or partial recourse and no recourse assignments. --
CORRECT ANSWER--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. --CORRECT ANSWER--
Manufacturer's

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