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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q120-Q125):

NEW QUESTION # 120
Which statute is considered part of U.S. federal privacy law?

• A. The e-Privacy Directive.
• B. The Fair Credit Reporting Act.
• C. SB 1386.
• D. The Personal Information Protection and Electronic Documents Act.

Answer: B
NEW QUESTION # 121
SCENARIO
Please use the following to answer the next QUESTION:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the main problem with Cheryl's suggested method of communicating the new privacy policy?

• A. The policy might not be implemented consistency across departments.
• B. Employees would not be comfortable with a policy that is put into action over time.
• C. The policy would not be considered valid if not communicated in full.
• D. Employees might not understand how the documents relate to the policy as a whole.

Answer: A
NEW QUESTION # 122
SCENARIO
Please use the following to answer the next question:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals - ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?

• A. Because HealthCo did not conduct due diligence to verify or monitor CloudHealth's security measures
• B. Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI
• C. Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI
• D. Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred

Answer: A
NEW QUESTION # 123
What do the Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act all have in common?

• A. They require employers not to discriminate against certain classes when employees use personal information
• B. They afford certain classes of employees' privacy protection by limiting inquiries concerning their personal information
• C. They require that employers provide reasonable accommodations to certain classes of employees
• D. They permit employers to use or disclose personal information specifically about employees who are members of certain classes

Answer: A
NEW QUESTION # 124
Most states with data breach notification laws indicate that notice to affected individuals must be sent in the
"most expeditious time possible without unreasonable delay." By contrast, which of the following states currently imposes a definite limit for notification to affected individuals?

• A. New York
• B. Maine
• C. Florida
• D. California

Answer: C Explanation:
Explanation/Reference: https://www.itgovernanceusa.com/data-breach-notification-laws
NEW QUESTION # 125
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