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NEW QUESTION 42
SCENARIO
Please use the following to answer the next question:
Chuck, a compliance auditor for a consulting firm focusing on healthcare clients, was required to travel to the client's office to perform an onsite review of the client's operations. He rented a car from Finley Motors upon arrival at the airport as so he could commute to and from the client's office. The car rental agreement was electronically signed by Chuck and included his name, address, driver's license, make/model of the car, billing rate, and additional details describing the rental transaction. On the second night, Chuck was caught by a red light camera not stopping at an intersection on his way to dinner. Chuck returned the car back to the car rental agency at the end week without mentioning the infraction and Finley Motors emailed a copy of the final receipt to the address on file.
Local law enforcement later reviewed the red light camera footage. As Finley Motors is the registered owner of the car, a notice was sent to them indicating the infraction and fine incurred. This notice included the license plate number, occurrence date and time, a photograph of the driver, and a web portal link to a video clip of the violation for further review. Finley Motors, however, was not responsible for the violation as they were not driving the car at the time and transferred the incident to AMP Payment Resources for further review. AMP Payment Resources identified Chuck as the driver based on the rental agreement he signed when picking up the car and then contacted Chuck directly through a written letter regarding the infraction to collect the fine.
After reviewing the incident through the AMP Payment Resources' web portal, Chuck paid the fine using his personal credit card. Two weeks later, Finley Motors sent Chuck an email promotion offering 10% off a future rental.
What should Finley Motors have done to incorporate the transparency principle of Privacy by Design (PbD)?

• A. Provided notice of data sharing practices within the electronically signed rental agreement.
• B. Documented that Finley Motors has a legitimate interest to share Chuck's information.
• C. Obtained verbal consent from Chuck and recorded it within internal systems.
• D. Signed a data sharing agreement with AMP Payment Resources.

Answer: A

NEW QUESTION 43
SCENARIO
Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only accepting cash and personal checks.
As business grew, Carol couldn't keep up with demand, and traveling to festivals became burdensome. Carol opened a small boutique and hired Sam to run it while she worked in the studio. Sam was a natural salesperson, and business doubled. Carol told Sam, "I don't know what you are doing, but keep doing it!" But months later, the gift shop was in chaos. Carol realized that Sam needed help so she hired Jane, who had business expertise and could handle the back-office tasks. Sam would continue to focus on sales. Carol gave Jane a few weeks to get acquainted with the artisan craft business, and then scheduled a meeting for the three of them to discuss Jane's first impressions.
At the meeting, Carol could not wait to hear Jane's thoughts, but she was unprepared for what Jane had to say.
"Carol, I know that he doesn't realize it, but some of Sam's efforts to increase sales have put you in a vulnerable position. You are not protecting customers' personal information like you should." Sam said, "I am protecting our information. I keep it in the safe with our bank deposit. It's only a list of customers' names, addresses and phone numbers that I get from their checks before I deposit them. I contact them when you finish a piece that I think they would like. That's the only information I have! The only other thing I do is post photos and information about your work on the photo sharing site that I use with family and friends. I provide my email address and people send me their information if they want to see more of your work. Posting online really helps sales, Carol. In fact, the only complaint I hear is about having to come into the shop to make a purchase." Carol replied, "Jane, that doesn't sound so bad. Could you just fix things and help us to post even more online?"
'I can," said Jane. "But it's not quite that simple. I need to set up a new program to make sure that we follow the best practices in data management. And I am concerned for our customers. They should be able to manage how we use their personal information. We also should develop a social media strategy." Sam and Jane worked hard during the following year. One of the decisions they made was to contract with an outside vendor to manage online sales. At the end of the year, Carol shared some exciting news. "Sam and Jane, you have done such a great job that one of the biggest names in the glass business wants to buy us out!
And Jane, they want to talk to you about merging all of our customer and vendor information with theirs beforehand." What type of principles would be the best guide for Jane's ideas regarding a new data management program?

• A. Vendor management principles.
• B. Collection limitation principles.
• C. Fair Information Practice Principles
• D. Incident preparedness principles.

Answer: C

Explanation:
Explanation/Reference: https://www.worldprivacyforum.org/2008/01/report-a-brief-introduction-to-fair-information-practices/

NEW QUESTION 44
Which activity would best support the principle of data quality?

• A. Providing notice to the data subject regarding any change in the purpose for collecting such data.
• B. Ensuring that the number of teams processing personal information is limited.
• C. Ensuring that information remains accurate.
• D. Delivering information in a format that the data subject understands.

Answer: C

Explanation:
Explanation/Reference: https://iapp.org/resources/article/fair-information-practices/

NEW QUESTION 45
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