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NEW QUESTION 47
SCENARIO
Please use the following to answer the next question:
Joe started the Gummy Bear Company in 2000 from his home in Vermont, USA.
Today, it is a multi-billion-dollar candy company operating in every continent. All of the company's IT servers are located in Vermont. This year Joe hires his son Ben to join the company and head up Project Big, which is a major marketing strategy to triple gross revenue in just 5 years. Ben graduated with a PhD in computer software from a top university. Ben decided to join his father's company, but is also secretly working on launching a new global online dating website company called Ben Knows Best.
Ben is aware that the Gummy Bear Company has millions of customers and believes that many of them might also be interested in finding their perfect match. For Project Big, Ben redesigns the company's online web portal and requires customers in the European Union and elsewhere to provide additional personal information in order to remain a customer. Project Ben begins collecting data about customers' philosophical beliefs, political opinions and marital status.
If a customer identifies as single, Ben then copies all of that customer's personal data onto a separate database for Ben Knows Best. Ben believes that he is not doing anything wrong, because he explicitly asks each customer to give their consent by requiring them to check a box before accepting their information. As Project Big is an important project, the company also hires a first year college student named Sam, who is studying computer science to help Ben out.
Ben calls out and Sam comes across the Ben Knows Best database. Sam is planning on going to Ireland over Spring Beak with 10 of his friends, so he copies all of the customer information of people that reside in Ireland so that he and his friends can contact people when they are in Ireland.
Joe also hires his best friend's daughter, Alice, who just graduated from law school in the U.S., to be the company's new General Counsel. Alice has heard about the GDPR, so she does some research on it. Alice approaches Joe and informs him that she has drafted up Binding Corporate Rules for everyone in the company to follow, as it is important for the company to have in place a legal mechanism to transfer data internally from the company's operations in the European Union to the U.S.
Joe believes that Alice is doing a great job, and informs her that she will also be in-charge of handling a major lawsuit that has been brought against the company in federal court in the U.S. To prepare for the lawsuit, Alice instructs the company's IT department to make copies of the computer hard drives from the entire global sales team, including the European Union, and send everything to her so that she can review everyone's information. Alice believes that Joe will be happy that she did the first level review, as it will save the company a lot of money that would otherwise be paid to its outside law firm.
As a result of Sam's actions, the Gummy Bear Company potentially violated Articles 33 and 34 of the GDPR and will be required to do what?

• A. Analyze and evaluate the liability for customers in Ireland.
• B. Analyze and evaluate all of its breach notification obligations.
• C. Notify its Data Protection Authority about the data breach.
• D. Notify all of its customers that reside in the European Union.

Answer: C

NEW QUESTION 48
Under the GDPR, who would be LEAST likely to be allowed to engage in the collection, use, and disclosure of a data subject's sensitive medical information without the data subject's knowledge or consent?

• A. A member of the judiciary involved in adjudicating a legal dispute involving the data subject and concerning the health of the data subject.
• B. A public authority responsible for public health, where the sharing of such information is considered necessary for the protection of the general populace.
• C. A journalist writing an article relating to the medical condition in question, who believes that the publication of such information is in the public interest.
• D. A health professional involved in the medical care for the data subject, where the data subject's life hinges on the timely dissemination of such information.

Answer: B

Explanation:
Explanation/Reference: https://www.eui.eu/Documents/ServicesAdmin/DeanOfStudies/ResearchEthics/Guide-Data- Protection-Research.pdf

NEW QUESTION 49
SCENARIO
Please use the following to answer the next question:
You have just been hired by a toy manufacturer based in Hong Kong. The company sells a broad range of dolls, action figures and plush toys that can be found internationally in a wide variety of retail stores. Although the manufacturer has no offices outside Hong Kong and in fact does not employ any staff outside Hong Kong, it has entered into a number of local distribution contracts. The toys produced by the company can be found in all popular toy stores throughout Europe, the United States and Asia. A large portion of the company's revenue is due to international sales.
The company now wishes to launch a new range of connected toys, ones that can talk and interact with children. The CEO of the company is touting these toys as the next big thing, due to the increased possibilities offered: The figures can answer children's questions on various subjects, such as mathematical calculations or the weather. Each figure is equipped with a microphone and speaker and can connect to any smartphone or tablet via Bluetooth. Any mobile device within a 10-meter radius can connect to the toys via Bluetooth as well.
The figures can also be associated with other figures (from the same manufacturer) and interact with each other for an enhanced play experience.
When a child asks the toy a question, the request is sent to the cloud for analysis, and the answer is generated on cloud servers and sent back to the figure. The answer is given through the figure's integrated speakers, making it appear as though that the toy is actually responding to the child's question. The packaging of the toy does not provide technical details on how this works, nor does it mention that this feature requires an internet connection. The necessary data processing for this has been outsourced to a data center located in South Africa. However, your company has not yet revised its consumer-facing privacy policy to indicate this.
In parallel, the company is planning to introduce a new range of game systems through which consumers can play the characters they acquire in the course of playing the game. The system will come bundled with a portal that includes a Near-Field Communications (NFC) reader. This device will read an RFID tag in the action figure, making the figure come to life onscreen. Each character has its own stock features and abilities, but it is also possible to earn additional ones by accomplishing game goals. The only information stored in the tag relates to the figures' abilities. It is easy to switch characters during the game, and it is possible to bring the figure to locations outside of the home and have the character's abilities remain intact.
In light of the requirements of Article 32 of the GDPR (related to the Security of Processing), which practice should the company institute?

• A. Encrypt the data in transit over the wireless Bluetooth connection.
• B. Include three-factor authentication before each use by a child in order to ensure the best level of security possible.
• C. Include dual-factor authentication before each use by a child in order to ensure a minimum amount of security.
• D. Insert contractual clauses into the contract between the toy manufacturer and the cloud service provider, since South Africa is outside the European Union.

Answer: A

NEW QUESTION 50
SCENARIO
Please use the following to answer the next question:
Jane Stan's her new role as a Data Protection Officer (DPO) at a Malta-based company that allows anyone to buy and sell cryptocurrencies via its online platform. The company stores and processes the personal data of its customers in a dedicated data center located in Malta (EU).
People wishing to trade cryptocurrencies are required to open an online account on the platform. They then must successfully pass a KYC due diligence procedure aimed at preventing money laundering and ensuring compliance with applicable financial regulations.
The non-European customers are also required to waive all their GDPR rights by reading a disclaimer written in bold and belong a checkbox on a separate page in order to get their account approved on the platform.
The customers must likewise accept the terms of service of the platform. The terms of service also include a privacy policy section, saying, among other things, that if a Are the cybersecurity assessors required to sign a data processing agreement with the company in order to comply with the GDPR''

• A. Yes, the assessors are data processors and their processing of personal data must be governed by a separate contract or other legal act.
• B. No, the assessors do not quality as data processors as they only have access to encrypted data.
• C. Yes. the assessors a-e considered to be joint data controllers and must sign a mutual data processing agreement.
• D. No. the assessors do not quality as data processors as they do not copy the data to their facilities.

Answer: A

NEW QUESTION 51
What was the aim of the European Data Protection Directive 95/46/EC?

• A. To completely prevent the transfer of personal data out of the European Union.
• B. To implement the OECD Guidelines on the Protection of Privacy and trans-border flows of Personal Data.
• C. To further reconcile the protection of the fundamental rights of individuals with the free flow of data from one member state to another.
• D. To harmonize the implementation of the European Convention of Human Rights across all member states.

Answer: B

NEW QUESTION 52
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