AFIP Ethical and Professional Conduct 5

Question 1

A customer financing a vehicle through a dealership is protected from discriminatory credit practices primarily by which federal law?

Accepted Answer

The Equal Credit Opportunity Act (ECOA)

Answer

The ECOA prohibits creditors from discriminating against applicants based on race, sex, age, religion, national origin, or other protected characteristics.

Question 2

An F&I professional who charges customers different interest rate markups based on ethnicity rather than creditworthiness is violating:

Accepted Answer

The Equal Credit Opportunity Act and ethical conduct standards

Answer

Disparate pricing based on protected characteristics violates the ECOA and is a serious breach of F&I professional ethics.

Question 3

What is the ethical obligation of an F&I professional when a customer expresses difficulty understanding complex contract terms?

Accepted Answer

Simplify the explanation and confirm understanding before proceeding

Answer

Ensuring customer comprehension before proceeding is a core ethical responsibility that supports informed consent.

Question 4

Which of the following represents a 'best practice' for maintaining ethical standards in F&I menu selling?

Accepted Answer

Presenting all products consistently to every customer and documenting their decisions

Answer

Consistent, documented menu presentation to all customers ensures equitable treatment and creates a record of ethical practice.

Question 5

When a customer asks for time to review F&I documents before signing, the ethical and professional response is to:

Accepted Answer

Allow the customer adequate time and answer any questions they have

Answer

Customers have the right to review documents thoroughly; pressuring them to sign without adequate review is coercive and unethical.

(AFIP) Certified Association of Finance & Insurance Professionals Practice Test

(AFIP) Certified Association of Finance & Insurance Professionals Practice Test

AFIP Ethical and Professional Conduct 5