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Practice Questions

In passing FACTA, Congress overturned what guidance originally provided by the FTC in the "Vail Letter"?

That employee investigations conducted by third parties were subject to the FCRA and therefore must be disclosed to employees.

That employees must be provided the opportunity to respond to any adverse action.

That a lie detector test administered by an employer may not be conducted by a third party.

That the FCRA applies to employee investigations in addition to background screening of prospective employees.

Company X intends to contact its customers via email, but first provides an opportunity to opt out. If Company X wants to start making phone calls to consumers, should it call consumers that have opted out?

Yes, because once a company has contact information, there is implied consent to use the information unless the consumer opts out.

Yes, so long as there are no legal requirements prohibiting it.

No, because the TSR prohibits it.

No, because personal information is used in a manner different than how it was used when initially obtained.

Which of the following best describes the "collection limitation" principle?

Data should only be used for the purposes for which it was originally obtained.

Data should only be disclosed to third parties that will process the data for the benefit of the data controller.

Data should be acquired only for the purposes for which it is relevant.

Data should be destroyed when it is no longer needed for the purposes for which it was used.

All of the following are reasons that a company would conduct a complete data inventory, except:

To help the organization leverage data to serve business goals.

It is legally mandated.

It resolves cross-border compliance conflicts.

It can help an organization understand its legal obligations.

Which of the following best describes an "unfair" trade practice?

A practice that is likely to mislead consumers acting reasonably under the circumstances, which results in substantial injury, with a lack of off-setting benefits.

A practice that results in substantial injury, with a lack of off-setting benefit, and the injury is one that consumers could not reasonably have avoided.

A practice that interferes with a consumer's ability to understand data practices, thereby causing injury that a consumer could not reasonably avoid.

A material misstatement or omission that is likely to mislead consumers who are acting reasonably under the circumstances.

Under HIPAA's data breach rules, how soon after a data breach of PHI is notice required to be sent to affected individuals?

Within 60 days of discovery of the breach.

Within a reasonable time not to exceed 45 days.

At the most expeditious time possible and without reasonable delay.

Within 30 days of the verification that a breach occurred.

How would a financial institution best protect itself from liability for a potential violation of the notice requirements of the GLBA's Privacy Rule?

By certifying with a self-regulatory agency.

By utilizing the model form promulgated by federal regulators.

By obtaining customer opt-out consent.

By certifying compliance with the E.U.-U.S. Data Privacy Framework.

What did the U.S. Supreme Court hold in Toyota Motor Manufacturing, Kentucky, Inc. v. Williams, that was later overturned by the ADA Amendments Act of 2008?

That whether an impairment substantially limits a major life function should be determined by reference to the ameliorative effects of mitigating measures.

That addition to, but not current use of, alcohol or illicit substances constitutes a disability under the ADA.

That whether an applicant is "qualified" for employment should be made by reference to the ameliorative effects of mitigating measures.

That the ADA did not cover conditions that were episodic or in remission.

Under the CCPA, which of the following is true?

Before selling personal information of children under the age of 16, consent must be obtained.

Before selling the personal information of children under the age of 13, consent must be obtained.

Before processing the personal information of children under the age of 16, consent must be obtained.

Processing of personal information of children under 16 is prohibited, regardless of consent.

Each of the following states have passed legislation that places strict limits on the processing of biometric data, except:

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