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NEW QUESTION 22
Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

  • A. Financial institutions must avoid collecting a customer’s sensitive personal information
  • B. Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing
  • C. Financial institutions must help ensure a customer’s understanding of products and services
  • D. Financial institutions must use a prescribed level of encryption for most types of customer records

Answer: C

 

NEW QUESTION 23
What is the main reason some supporters of the European approach to privacy are skeptical about self-regulation of privacy practices?

  • A. A new business owner may not understand the regulations
  • B. A large amount of money may have to be sent on improved technology and security
  • C. Human rights maybe disregarded for the sake of privacy
  • D. Industries may not be strict enough in the creation and enforcement of rules

Answer: D

 

NEW QUESTION 24
SCENARIO
Please use the following to answer the next QUESTION:
Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company’s product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.
This year’s conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. “It’s going to be great,” the developer, Deidre Hoffman, tells you, “if, that is, we actually get it working!” She laughs nervously but explains that because of the tight time frame she’d been given to build the app, she outsourced the job to a local firm. “It’s just three young people,” she says, “but they do great work.” She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. “They do good work, so I chose them.” Deidre is a terrific employee with a strong track record. That’s why she’s been charged to deliver this rushed project. You’re sure she has the best interests of the company at heart, and you don’t doubt that she’s under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app’s handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her about it, but she quickly tries to reassure you, “I’m sure with your help we can fix any security issues if we have to, but I doubt there’ll be any. These people build apps for a living, and they know what they’re doing. You worry too much, but that’s why you’re so good at your job!” What safeguard can most efficiently ensure that privacy protection is a dimension of relationships with vendors?

  • A. Require that a person trained in privacy protection be part of all vendor selection teams
  • B. Include appropriate language about privacy protection in vendor contracts
  • C. Do business only with vendors who are members of privacy trade associations
  • D. Perform a privacy audit on any vendor under consideration

Answer: A

 

NEW QUESTION 25
The “Consumer Privacy Bill of Rights” presented in a 2012 Obama administration report is generally based on?

  • A. Common law principles
  • B. The 1974 Privacy Act
  • C. European Union Directive
  • D. Traditional fair information practices

Answer: C

 

NEW QUESTION 26
……

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