AFIP Certification Exam Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest update!!
Terms in this set (465)
(True/False): Ignorance of the False
law will shield you from
liability if you are
noncompliant.
(True/False): As an F&I manager True
working directly with
customers, you are
individually responsible for your
actions and what you say to
each customer.
In a typical credit transaction the The dealer is the creditor
(bank)/(dealer) is the creditor.
A contract is an agreement involving a promise or set of
What is a contract?
promises that the law enforces or protects.
1. Offer
The formation of a contract
2. Acceptance
requires three elements:
3. Consideration
1. An expression of a promise or commitment (intent) to enter a contract
An offer consists of three 2. An expression of definite and certain terms
elements: 3. The communication of the offer to the offeree (in this case, the customer)
1. An act of the parties
An offer may be terminated by:
2. The operation of law
, 1. The offer is accepted by one who is entitled to accept
There are three criteria for the 2. The acceptance takes the proper form and is timely
acceptance of an offer: 3. The terms of acceptance reflect closely the terms of the offer
and, therefore, do not amount to a counteroffer
Generally requires that all contracts involving the sale of goods
The Statute of Frauds
for a price of $500 or more be in writing.
The Statute of Frauds requires a $500
written
contract for the sale of goods for a
price of
___ or more.
What is required in order for The parties to the contract must be of legal age under the laws
the parties (the individuals of the state in which the contract is written.
entering into the contract) to
have "legal capacity?"
1. The need for a written agreement under the Statute
Criteria that can block the of Frauds and certain provisions of the Uniform
formation of a valid contract: Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it The requirement that each party to the contract receives
applies to a contract? something of value in exchange for what is given.
The Finance Charge is the resulting dollar amount calculated by
Finance Charge
applying the Annual Percentage Rate to the Amount Financed
over the term of the contract.
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
How the Itemization of Amount
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
Financed is completed 4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
Section A) General Information -- Identifies the parties
to the agreement. Section B) Mandated Disclosures --
4 Key Sections of an installment
sale contract 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 Promise to Pay - This section outlines the purpose of the
and promise to pay contained transaction and the primary obligations that will be incurred
in Section A of Retail from signing the contract.
Installment Form
The difference between full or Essentially determines the length of time, if any, the seller is
partial recourse and no recourse responsible for the actions of the buyer.
assignments.
Warranty disclaimers do not apply Manufacturer's
to _______ warranties on new or
used vehicles to which that
warranty still applies.
A(n)__ clause allows the creditor Acceleration
to
declare the entire outstanding
balance due and payable.
As recorded on an installment sale -Payments
agreement, the total sale price -Downpayment
or deferred contract price -Net Trade-In
would be the total of the
________.
|Questions with Correct Answers 2025 latest update!!
Terms in this set (465)
(True/False): Ignorance of the False
law will shield you from
liability if you are
noncompliant.
(True/False): As an F&I manager True
working directly with
customers, you are
individually responsible for your
actions and what you say to
each customer.
In a typical credit transaction the The dealer is the creditor
(bank)/(dealer) is the creditor.
A contract is an agreement involving a promise or set of
What is a contract?
promises that the law enforces or protects.
1. Offer
The formation of a contract
2. Acceptance
requires three elements:
3. Consideration
1. An expression of a promise or commitment (intent) to enter a contract
An offer consists of three 2. An expression of definite and certain terms
elements: 3. The communication of the offer to the offeree (in this case, the customer)
1. An act of the parties
An offer may be terminated by:
2. The operation of law
, 1. The offer is accepted by one who is entitled to accept
There are three criteria for the 2. The acceptance takes the proper form and is timely
acceptance of an offer: 3. The terms of acceptance reflect closely the terms of the offer
and, therefore, do not amount to a counteroffer
Generally requires that all contracts involving the sale of goods
The Statute of Frauds
for a price of $500 or more be in writing.
The Statute of Frauds requires a $500
written
contract for the sale of goods for a
price of
___ or more.
What is required in order for The parties to the contract must be of legal age under the laws
the parties (the individuals of the state in which the contract is written.
entering into the contract) to
have "legal capacity?"
1. The need for a written agreement under the Statute
Criteria that can block the of Frauds and certain provisions of the Uniform
formation of a valid contract: Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
What is "consideration" as it The requirement that each party to the contract receives
applies to a contract? something of value in exchange for what is given.
The Finance Charge is the resulting dollar amount calculated by
Finance Charge
applying the Annual Percentage Rate to the Amount Financed
over the term of the contract.
1. Cash Price (Agreed to price of vehicle)
2. Total Downpayment
How the Itemization of Amount
3. Unpaid Balance of Cash Price(Cash Price-Downpayment)
Financed is completed 4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
Section A) General Information -- Identifies the parties
to the agreement. Section B) Mandated Disclosures --
4 Key Sections of an installment
sale contract 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 Promise to Pay - This section outlines the purpose of the
and promise to pay contained transaction and the primary obligations that will be incurred
in Section A of Retail from signing the contract.
Installment Form
The difference between full or Essentially determines the length of time, if any, the seller is
partial recourse and no recourse responsible for the actions of the buyer.
assignments.
Warranty disclaimers do not apply Manufacturer's
to _______ warranties on new or
used vehicles to which that
warranty still applies.
A(n)__ clause allows the creditor Acceleration
to
declare the entire outstanding
balance due and payable.
As recorded on an installment sale -Payments
agreement, the total sale price -Downpayment
or deferred contract price -Net Trade-In
would be the total of the
________.
