Name *

First Name

Last Name

1. The customer's signature means that they: *

A. Understand and read what they are signing

B. You explained what they are signing

C. Makes the customer responsible for the information on the signed document

D. Both A and C

2. An installment sale and a car loan are the same. *

True

False

3. RISC are issued by a bank or credit union. *

True

False

4. You should use the terms interest and loan when discussing a customer's automobile purchase. *

True

False

6. Negative equity is also known as being "upside down." *

True

False

7. It is a violation of Regulation Z if you do not properly disclose the loan balance of the trade on the contract. *

True

False

8. Hiding the fact that a customer is "upside down" in his trade can create a liability for the dealership. *

True

False

9. It is ok for someone other than the customer to sign any document if: *

A. They give permission to do so

B. If you sign Signature on File

C. If their spouse signs for them

D. If a co-x signs for the buyer

E. None of the above

10. A good approach to ensure that signature is not missed is to use a standard procedure including a checklist *

True

False

11. The federal law regarding deferred down payments states that it must be paid in full by the first payment date. *

True

False

12. Hawai'i state law says the maximum late charge that can be assessed for a late payment is _____% up to $50.00 *

A. 25%

B. 30%

C. 10%

D. 5%

13. In Hawai'i, it is within the law to have customers sign blank documents. *

True

False

14. The liens in the state of Hawai'i must be released within ____ days. *

A. 45

B. 20

C. 30

D. 60

15. If you do not give your customer a signed copy of the documents they signed, they can rescind the deal. *

True

False

16. Gap in Hawai'i is considered gap waiver. Therefore, the lender waives the deficiency balanace including negative equity, tax and license, and any other fees. *

True

False

17. The Magnuson-Moss Warranty Act governs our Vehicle Service Contracts. *

True

False

18. OFAC checks must be run at the time of deal consummation. *

True

False

19. As part of the federal contract disclosure requirements highlighting or making a contract with an X, changes the prominence of the contract and should not be done. It also says the customer should be able to review the contract in his possession before they sign it.

True

False

20. If it is necessary to recontract a customer, the date should remain as the original delivery date. *

A. The customer has an unlisted number

B. The credit report indicated a pattern of activity that is inconsistent with the history and usual pattern of activity

C. the customer cannot answer the challenge questions properly

D. All of the above

E. B & C only

21. In leasing, the 3 components of the monthly lease payments are: The rent charge, the depreciation, and the _________ *

A. Sales Tax

B. Residual amount

C. Excess mileage charge

D. Disposition Fee

22. The form we are required to give the customer prior to the deal being worked as soon as the credit is pulled is called the *

A. Risk based pricing notice

B. Privacy notice

C. OFAC

D. Red Flags

23. A SAR, also known as a Suspicious Activity Report, is a report required to be submitted by the federally insured institution whenever the transaction seems like there is bank fraud.

True

False

24. When a SAR is filed, you will be notified by the federally insured institution. *

True

False

25. In leasing the prior loan balance, (negative equity) remaining lease payments, excess mileage, or excess wear and tear amounts can be added to the Agreed Upon Selling price in the IGCC, the Itemization of Gross Capitalized Cost *

True

False

26. The amount disclosed as cash collected in the lease starts section must be supported with a receipt on file. The amount absorbed by the dealer must be disclosed in the rebate or non-cash credit line. *

True

False

27. A _______ __________ means that the origination of a contract by a customer on behalf of another who is not a party to the contract with the intent of providing such party primary use or possession of the related Vehicle and where such customer intends that party to make the payments owed under the contract. *

A. Pay Stub

B. Power Booking

C. Service Contract

D. Straw Purchase

28. The vehicle and all options therein are accurately described in the contract...the buyer's order submitted to the finance source for each vehicle accurately reflects the items purchased, all options and the terms and conditions of such purchase, the Dealer has not misrepresented the description or any of the terms and conditions of such purchase *

A. Straw purchase

B. Down payment

C. Power booking

D. MSRP

29. Any misrepresentation of _________ can trigger a SAR report. *

A. Income

B. Job time/title

C. Book value

D. Down payment

E. Trade equity

F. POI

F. Straw purchase

H. All of the above

30. It is a TILA violation to print two contracts. One as a "back up." *

A. If the customer lives less than 10 miles from the dealership.

B. If the rebates are changing tomorrow

C. Never

D. Always

31. In addition to a signed lease agreement, a signed buyers order should also be executed because it will contain the necessary state disclosures that the lease agreement may not contain.

True

False

32. Lease orders are the accurate document for proper disclosures to generate on leases. Buyer's orders will not protect the dealer from the disclosures within the document on a lease because of TILA issues. *

True

False

33. Which service contract that has no powertrain coverage? *

A. Mileage Plus

B. 5 Star

C. Wrap Plans

D. 3 Star

34. The service contract that has exclusionary coverage is: *

A. 3 Star

B. 1 Star

C. 4 Star

D. 5 Star

35. If the vehicle is modified or altered, other than a lifted vehicle with the corresponding option checked, the vehicle service contract will be voided *

True

False