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 professional is offered a gift by a product provider in exchange for steering customers toward that provider's products. Accepting this gift would most likely constitute:
Answer: A kickback, which is unethical and potentially illegal
Receiving undisclosed gifts or payments that influence product recommendations constitutes a kickback, violating ethical and potentially legal standards.
What does 'suitability' mean in the context of F&I product recommendations?
Answer: The product genuinely meets the customer's specific needs and financial situation
Suitability means matching product recommendations to the customer's actual needs, circumstances, and ability to pay.
If an F&I professional discovers an error in a signed contract that benefits the dealership at the customer's expense, the ethical action is to:
Answer: Notify the customer and correct the error
Ethical conduct requires correcting errors that disadvantage customers, even when discovered after signing.
A customer asks an F&I professional whether a specific product is 'required' to get the loan. The professional knows it is not required. The ethical response is to:
Answer: Clearly state that the product is optional and not a loan condition
Misrepresenting optional products as loan requirements is deceptive and a direct violation of ethical conduct standards.
Which of the following best illustrates the ethical principle of 'transparency' in F&I transactions?
Answer: Providing a full breakdown of all costs, products, and terms before asking for a signature
Transparency requires proactively providing customers with a complete and itemized breakdown of all costs and terms.
Under the FTC's Used Car Rule and related ethical standards, what must dealers provide to customers regarding vehicle history and condition?
Answer: A Buyers Guide with warranty information prominently displayed on the vehicle
The FTC Used Car Rule requires dealers to display a Buyers Guide on every used vehicle disclosing warranty status and terms.
How does continuous professional education contribute to ethical conduct for F&I professionals?
Answer: It ensures professionals stay current on regulations, products, and best practices to serve customers ethically
Ongoing education keeps F&I professionals current on evolving regulations and ethical standards, enabling them to serve customers with accuracy and integrity.