Ethical and Professional Conduct Flashcards
7 cards from real AFIP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethical and Professional Conduct flashcards as text
An F&I manager feels pressure from a sales manager to approve a customer for financing by overstating the customer's income on the application. The correct ethical response is to:
Answer: Refuse and explain that falsifying financial information is fraud
Falsifying income on a credit application is loan fraud; no authority or pressure justifies participating in illegal activity.
Which scenario most clearly represents a conflict of interest for an F&I professional?
Answer: Earning a higher commission on one lender's product than another's without disclosing this to the customer
Earning undisclosed financial incentives that influence product recommendations creates a conflict of interest that must be disclosed.
A customer who is non-English speaking appears confused during the F&I process. The ethical course of action is to:
Answer: Arrange for a qualified interpreter or translated documents before proceeding
Ensuring a customer fully understands the transaction — including through language accommodation — is an ethical and legal requirement.
The principle of 'fair dealing' in F&I ethics primarily means:
Answer: Treating customers honestly and equitably throughout the transaction
Fair dealing requires honest, equitable treatment of every customer without deception or exploitation.
A customer signs a contract and later claims they did not understand they had purchased a GAP product. To prevent this ethical and legal risk, F&I professionals should:
Answer: Both verbally explain each product and obtain written acknowledgment
Both verbal explanation and written acknowledgment create a clear record that the customer was informed and agreed to each product.
Under AFIP standards, how should an F&I professional handle a customer who asks to waive the explanation of F&I products to speed up the process?
Answer: Still provide required disclosures but streamline the presentation appropriately
Required disclosures cannot be waived by a customer's preference; the professional must provide them, though the presentation can be efficient.
Which of the following behaviors would violate the AFIP Code of Ethics regarding customer privacy?
Answer: Sharing a customer's credit information with an unauthorized third party
Sharing customer financial information with unauthorized parties violates privacy laws and the AFIP ethical obligation to protect consumer data.