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
A customer financing a vehicle through a dealership is protected from discriminatory credit practices primarily by which federal law?
Answer: The Equal Credit Opportunity Act (ECOA)
The ECOA prohibits creditors from discriminating against applicants based on race, sex, age, religion, national origin, or other protected characteristics.
An F&I professional who charges customers different interest rate markups based on ethnicity rather than creditworthiness is violating:
Answer: The Equal Credit Opportunity Act and ethical conduct standards
Disparate pricing based on protected characteristics violates the ECOA and is a serious breach of F&I professional ethics.
What is the ethical obligation of an F&I professional when a customer expresses difficulty understanding complex contract terms?
Answer: Simplify the explanation and confirm understanding before proceeding
Ensuring customer comprehension before proceeding is a core ethical responsibility that supports informed consent.
Which of the following represents a 'best practice' for maintaining ethical standards in F&I menu selling?
Answer: Presenting all products consistently to every customer and documenting their decisions
Consistent, documented menu presentation to all customers ensures equitable treatment and creates a record of ethical practice.
When a customer asks for time to review F&I documents before signing, the ethical and professional response is to:
Answer: Allow the customer adequate time and answer any questions they have
Customers have the right to review documents thoroughly; pressuring them to sign without adequate review is coercive and unethical.
Which action would best demonstrate an F&I professional's commitment to the AFIP Code of Ethics after completing a transaction?
Answer: Following up with the customer to confirm satisfaction and address any questions about their products
Post-sale follow-up to confirm customer satisfaction and address product questions reflects ongoing ethical commitment beyond the transaction.
Under AFIP standards, what is the primary purpose of requiring F&I professionals to maintain their certification through continuing education?
Answer: To ensure ongoing competency and ethical practice as regulations and products evolve
AFIP continuing education requirements exist to ensure professionals remain competent, ethical, and current with regulatory changes that affect consumers.