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IAPP Certified Information Privacy Professional/Europe (CIPP/E) Sample Questions (Q182-Q187):

NEW QUESTION # 182
MagicClean is a web-based service located in the United States that matches home cleaning services to customers. It otters its services exclusively in the United States It uses a processor located in France to optimize its dat a. Is MagicClean subject to the GDPR?

A. Yes. because MagicClean's data processing agreement with the French processor is an establishment in the EU
B. Yes, because MagicClean is processing data in the EU
C. No. because MagicClean is not offering services to EU data subjects.
D. No, because MagicClean is located m the United States only.

Answer: A

NEW QUESTION # 183
Select the answer below that accurately completes the following:
"The right to compensation and liability under the GDPR...

A. ...provides for an exemption from liability if the data controller (or data processor) proves that it is not in any way responsible for the event giving rise to the damage."
B. ...can only be exercised against the data controller, even if a data processor was involved in the same processing."
C. ...is limited to a maximum amount of EUR 20 million per event of damage or loss."
D. ...precludes any subsequent recourse proceedings against other controllers or processors involved in the same processing."

Answer: D

NEW QUESTION # 184
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.
Ben's collection of additional data from customers created several potential issues for the company, which would most likely require what?

A. A data protection impact assessment.
B. A comprehensive data inventory.
C. Hiring a data protection officer.
D. New corporate governance and code of conduct.

Answer: A

Explanation:
Ben's collection of additional data from customers, especially sensitive data such as philosophical beliefs and political opinions, created several potential issues for the company, such as:
The risk of violating the data minimization principle, which requires that personal data collected must be adequate, relevant and limited to what is necessary for the purposes of the processing1.
The risk of infringing the rights and freedoms of the data subjects, who may not be aware of or consent to the secondary use of their data by Ben Knows Best, or the unauthorized access and copying of their data by Sam.
The risk of non-compliance with the GDPR's requirements for processing special categories of data, which include data revealing philosophical beliefs and political opinions. Such data can only be processed under certain conditions, such as explicit consent, substantial public interest, or legal claims2.
The risk of data breaches or losses, as the data is transferred to a separate database, copied by Sam, and stored on the company's servers in Vermont, which may not have adequate security measures or safeguards.
Therefore, the company would most likely require a data protection impact assessment (DPIA) to identify and mitigate these risks. A DPIA is a process that helps assess the impact of the envisaged processing operations on the protection of personal data, and consult with the supervisory authority if the DPIA indicates that the processing would result in a high risk in the absence of measures taken by the controller to mitigate the risk3. The other options are not necessarily required by the GDPR, although they may be good practices or contractual terms. Reference:
Free CIPP/E Study Guide, page 32, section 4.1.2
CIPP/E Certification, page 27, section 4.1.2
The Ultimate CIPP/E Study Guide for 2023, page 36, section 4.1.2
Principles - General Data Protection Regulation (GDPR), Article 5
Special categories of personal data - General Data Protection Regulation (GDPR), Article 9 Data protection impact assessment - General Data Protection Regulation (GDPR), Article 35

NEW QUESTION # 185
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. Vetting companies' measures with the appropriate supervisory authority.
B. Avoiding the use of another company's data to improve their own services.
C. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
D. Requesting advice and technical support from Company A's IT team.

Answer: C

Explanation:
* Article 82 of the GDPR1234 regulates the right to compensation and liability for any person who has suffered material or non-material damage as a result of an infringement of the GDPR.
* Paragraph 4 of Article 821234 states that a controller or processor shall be exempt from liability under paragraph 2 (which holds them liable for the damage caused by processing which infringes the GDPR) if it proves that it is not in any way responsible for the event giving rise to the damage.
* Therefore, the right to compensation and liability under the GDPR provides for an exemption from liability if the data controller (or data processor) proves that it is not in any way responsible for the event giving rise to the damage.
References:
1: Art. 82 GDPR - Right to compensation and liability - General Data Protection Regulation (GDPR)
2: Art. 82 GDPR - Right to compensation and liability - GDPR.eu
3: GDPR Article 82: Right to compensation and liability - Advisera
4: Article 82 GDPR | Right to compensation and liability

NEW QUESTION # 186
A grade school is planning to use facial recognition to track student attendance. Which of the following may provide a lawful basis for this processing?

A. A state law requires facial recognition to verify attendance.
B. The school places a notice near each camera.
C. Processing is necessary for the legitimate interests pursed by the school.
D. The school gets explicit consent from the students.

Answer: B

NEW QUESTION # 187
......

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CIPP-E Cram File & CIPP-E Exam Cram & CIPP-E Latest Dumps

Test CIPP-E Study Guide | Test CIPP-E Preparation

IAPP Certified Information Privacy Professional/Europe (CIPP/E) Sample Questions (Q182-Q187):

Valid CIPP-E exam materials offer you accurate preparation dumps - ActualCollection

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