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IAPP CIPP-US Exam Sample Questions


Question # 1

SCENARIO
Please use the following to answer the next QUESTION
Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years. One potential employer, Arnie’s Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was  xtremely disorganized. He imagines that his credit report could still be sitting in the office, unsecured.
Two days ago, Noah got another interview for a position at Sam’s Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.
Regardless, the effect of Noah’s credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills – all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.
In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.
After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.
Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.
Based on the scenario, which legislation should ease Noah’s worry about his credit report as a result of applying at Arnie’s Emporium?

A.

The Privacy Rule under the Gramm-Leach-Bliley Act (GLBA).

B.

The Safeguards Rule under the Gramm-Leach-Bliley Act (GLBA).

C.

The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA).

D.

The Red Flags Rule under the Fair and Accurate Credit Transactions Act (FACTA).



C.

The Disposal Rule under the Fair and Accurate Credit Transactions Act (FACTA).






Question # 2

A large online bookseller decides to contract with a vendor to manage Personal Information (PI). What is the least important factor for the company to consider when selecting the vendor?

A.

The vendor’s reputation 

B.

The vendor’s financial health

C.

The vendor’s employee retention rates

D.

The vendor’s employee training program



C.

The vendor’s employee retention rates






Question # 3

Why was the Privacy Protection Act of 1980 drafted?

A.

To respond to police searches of newspaper facilities

B.

To assist prosecutors in civil litigation against newspaper companies

C.

To assist in the prosecution of white-collar crimes

D.

To protect individuals from personal privacy invasion by the police



A.

To respond to police searches of newspaper facilities






Question # 4

Which of the following does Title VII of the Civil Rights Act prohibit an employer from asking a job applicant?

A.

Questions about age

B.

Questions about a disability

C.

Questions about a national origin

D.

Questions about intended pregnancy



C.

Questions about a national origin






Question # 5

Who has rulemaking authority for the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)?

A.

State Attorneys General

B.

The Federal Trade Commission

C.

The Department of Commerce

D.

The Consumer Financial Protection Bureau



D.

The Consumer Financial Protection Bureau





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