[Jan-2022] Free CIPP-C Exam Questions CIPP-C Actual Free Exam Questions
Verified CIPP-C dumps and 180 unique questions
NEW QUESTION 66
What is a reason the European Court of Justice declared the Data Retention Directive invalid in 2014?
- A. The requirements specified that data must be held within the EU.
- B. The requirements affected individuals without exception.
- C. The requirements had limitations on how national authorities could use data.
- D. The requirements were financially burdensome to EU businesses.
Answer: C
NEW QUESTION 67
Under the GDPR, which of the following is true in regard to adequacy decisions involving cross-border transfers?
- A. To be considered as adequate, third countries must implement the EU General Data Protection Regulation into their national legislation.
- B. The European Commission can adopt an adequacy decision for individual companies.
- C. The European Commission can adopt, repeal or amend an existing adequacy decision.
- D. EU member states are vested with the power to accept or reject a European Commission adequacy decision.
Answer: B
NEW QUESTION 68
Under Article 58 of the GDPR, which of the following describes a power of supervisory authorities in European Union (EU) member states?
- A. The right to access data for investigative purposes.
- B. The ability to enact new laws by executive order.
- C. The authority to select penalties when a controller is found guilty in a court of law.
- D. The discretion to carry out goals of elected officials within the member state.
Answer: A
NEW QUESTION 69
SCENARIO
Please use the following to answer the next question:
Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago.
Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.
Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.
Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.
Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible.
Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.
In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.
Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis's contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes.
Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system.
Which statement accurately summarizes Bedrock's obligation in regard to Louis's data portability request?
- A. Bedrock does not have a duty to transfer Louis's data to Zantrum if doing so is legitimately not technically feasible.
- B. Bedrock has failed to comply with the duty to transfer Louis's data to Zantrum because the duty applies wherever personal data are processed by automated means and necessary for the performance of a contract with the customer.
- C. Bedrock has failed to comply with the duty to transfer Louis's data to Zantrum because it has an obligation to develop commonly used, machine-readable and interoperable formats so that all customer data can be ported to other insurers on request.
- D. Bedrock does not have to transfer Louis's data to Zantrum because the right to data portability does not apply where personal data are processed in order to carry out tasks in the public interest.
Answer: D
NEW QUESTION 70
A company in France suffers a robbery over the weekend owing to a faulty alarm system. When it is determined that the break-in involves the loss of a substantial amount of data, the company decides on a CCTV system to monitor for future incidents. Company technicians install cameras in the entrance of the building, hallways and offices. Footage is recorded continuously, and is monitored by the home office in the United States. What is the most realistic step the company could take to address their security concerns and comply with the personal data processing principles set out in Article 5 of the GDPR?
- A. Seek informed consent from company employees.
- B. Have cameras recording during work hours only.
- C. Restrict camera placement to building entrances only.
- D. Retain captured footage for no more than 30 days.
Answer: A
NEW QUESTION 71
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 harmonize the implementation of the European Convention of Human Rights across all member states.
- D. To further reconcile the protection of the fundamental rights of individuals with the free flow of data from one member state to another.
Answer: B
NEW QUESTION 72
Based on GDPR Article 35, which of the following situations would trigger the need to complete a DPIA?
- A. A company wants to build a dating app that creates candidate profiles based on location data and data from third-party sources.
- B. A company wants to use location data to infer information on a person's clothes purchasing habits.
- C. A company wants to use location data to track delivery trucks in order to make the routes more efficient.
- D. A company wants to combine location data with other data in order to offer more personalized service for the customer.
Answer: A
NEW QUESTION 73
When may a financial institution share consumer information with non-affiliated third parties for marketing purposes?
- A. After disclosing marketing practices to customers and after giving them an opportunity to opt in.
- B. After disclosing marketing practices to customers and after giving them an opportunity to opt out.
- C. After disclosing information-sharing practices to customers and after giving them an opportunity to opt out.
- D. After disclosing information-sharing practices to customers and after giving them an opportunity to opt in.
Answer: C
NEW QUESTION 74
SCENARIO
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B.
Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B's payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A's factories. Company B won't hold any biometric data itself, but the related data will be uploaded to Company B's UK servers and used to provide the payroll service. Company B's live systems will contain the following information for each of Company A's employees:
* Name
* Address
* Date of Birth
* Payroll number
* National Insurance number
* Sick pay entitlement
* Maternity/paternity pay entitlement
* Holiday entitlement
* Pension and benefits contributions
* Trade union contributions
Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn't sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn't have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B's live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C's U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C's U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A's employees is visible to anyone visiting Company C's website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
The GDPR requires sufficient guarantees of a company's ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?
- A. Avoiding the use of another company's data to improve their own services.
- B. Requesting advice and technical support from Company A's IT team.
- C. Vetting companies' measures with the appropriate supervisory authority.
- D. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
Answer: D
NEW QUESTION 75
Which entities must comply with the Telemarketing Sales Rule?
- A. For-profit and not-for-profit organizations when selling additional services to establish customers
- B. For-profit organizations calling businesses when a binding contract exists between them
- C. For-profit organizations and for-profit telefunders regarding charitable solicitations
- D. Nonprofit organizations calling on their own behalf
Answer: A
NEW QUESTION 76
According to the GDPR, how is pseudonymous personal data defined?
- A. Data that can no longer be attributed to a specific data subject without the use of additional information kept separately.
- B. Data that has been rendered anonymous in such a manner that the data subject is no longer identifiable.
- C. Data that has been encrypted or is subject to other technical safeguards.
- D. Data that can no longer be attributed to a specific data subject, with no possibility of re-identifying the data.
Answer: A
NEW QUESTION 77
Under the Data Protection Law Enforcement Directive of the EU, a government can carry out covert investigations involving personal data, as long it is set forth by law and constitutes a measure that is both necessary and what?
- A. DPA-approved.
- B. Important.
- C. Proportionate.
- D. Prudent.
Answer: C
NEW QUESTION 78
With respect to international transfers of personal data, the European Data Protection Board (EDPB) confirmed that derogations may be relied upon under what condition?
- A. When it has been determined that adequate protection can be performed.
- B. Only if the Data Protection Impact Assessment (DPIA) shows low risk.
- C. If the data controller has received preapproval from a Data Protection Authority (DPA), after submitting the appropriate documents.
- D. Only as a last resort and when interpreted restrictively.
Answer: A
NEW QUESTION 79
SCENARIO
Please use the following to answer the next question:
Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.
Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick's instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.
Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its clients' data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying information from the contact information. JaphSoft's engineers, however, maintain all contact information in the same database as the identifying information.
Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies' websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem's as well as EcoMick's latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem's products, she has never shopped EcoMick, nor provided her personal data to that company.
Why would the consent provided by Ms. Iman NOT be considered valid in regard to JaphSoft?
- A. She did not read the privacy notice stating that her personal data would be shared.
- B. She only viewed the visual representations of the privacy notice Liem provided.
- C. She was not told which controller would be processing her personal data.
- D. She has never made any purchases from JaphSoft and has no relationship with the company.
Answer: A
NEW QUESTION 80
What must be included in a written agreement between the controller and processor in relation to processing conducted on the controller's behalf?
- A. An obligation on the processor to assist the controller in complying with the controller's obligations to notify the supervisory authority about personal data breaches.
- B. An obligation on both parties to report any serious personal data breach to the supervisory authority.
- C. An obligation on both parties to agree to a termination of the agreement if the other party is responsible for a personal data breach.
- D. An obligation on the processor to report any personal data breach to the controller within 72 hours.
Answer: B
NEW QUESTION 81
In which of the following cases, cited as an example by a WP29 guidance, would conducting a single data protection impact assessment to address multiple processing operations be allowed?
- A. A railway operator who plans to evaluate the same video surveillance in all the train stations of his company.
- B. A data controller who plans to use a new technology product that has already undergone a DPIA by the product's provider.
- C. A medical organization that wants to begin genetic testing to support earlier research for which they have performed a DPIA.
- D. A marketing team that wants to collect mailing addresses of customers for whom they already have email addresses.
Answer: A
NEW QUESTION 82
Which jurisdiction must courts have in order to hear a particular case?
- A. Subject matter jurisdiction and professional jurisdiction
- B. Personal jurisdiction and subject matter jurisdiction
- C. Personal jurisdiction and professional jurisdiction
- D. Subject matter jurisdiction and regulatory jurisdiction
Answer: B
NEW QUESTION 83
SCENARIO
Please use the following to answer the next question:
Anna and Frank both work at Ontario University. Anna is a lawyer responsible for data protection, while Frank is a lecturer in the engineering department. The University maintains a number of types of records:
* Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information.
* Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files).
* Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees.
These records are available to former students after registering through Ontario's Alumni portal.
Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers.
* Under their security policy, the University encrypts all of its personal data records in transit and at rest.
In order to improve his teaching, Frank wants to investigate how his engineering students perform in relational to Department for Education expectations. He has attended one of Anna's data protection training courses and knows that he should use no more personal data than necessary to accomplish his goal. He creates a program that will only export some student data: previous schools attended, grades originally obtained, grades currently obtained and first time university attended. He wants to keep the records at the individual student level. Mindful of Anna's training, Frank runs the student numbers through an algorithm to transform them into different reference numbers. He uses the same algorithm on each occasion so that he can update each record over time.
One of Anna's tasks is to complete the record of processing activities, as required by the GDPR. After receiving her email reminder, as required by the GDPR. After receiving her email reminder, Frank informs Anna about his performance database.
Ann explains to Frank that, as well as minimizing personal data, the University has to check that this new use of existing data is permissible. She also suspects that, under the GDPR, a risk analysis may have to be carried out before the data processing can take place. Anna arranges to discuss this further with Frank after she has done some additional research.
Frank wants to be able to work on his analysis in his spare time, so he transfers it to his home laptop (which is not encrypted). Unfortunately, when Frank takes the laptop into the University he loses it on the train. Frank has to see Anna that day to discuss compatible processing. He knows that he needs to report security incidents, so he decides to tell Anna about his lost laptop at the same time.
Before Anna determines whether Frank's performance database is permissible, what additional information does she need?
- A. More information about the algorithm Frank used to mask student numbers.
- B. More information about the extent of the information loss.
- C. More information about what students have been told and how the research will be used.
- D. More information about Frank's data protection training.
Answer: C
NEW QUESTION 84
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