CCCP Regulatory Compliance & Legal Frameworks 4 — Questions and Answers
Question 1: Under the Telephone Consumer Protection Act (TCPA), which type of call or text is prohibited without prior express written consent?
- Live calls to residential landlines for charitable fundraising
- Autodialed or prerecorded calls/texts to a consumer's cell phone for marketing purposes (Correct answer)
- Robocalls made between 8 AM and 9 PM local time for informational purposes
- Manual calls made by a live agent to numbers on the Do Not Call registry
Correct answer: Autodialed or prerecorded calls/texts to a consumer's cell phone for marketing purposes
The TCPA requires prior express written consent before making autodialed or prerecorded marketing calls or texts to mobile phones, with violations subject to statutory damages of $500–$1,500 per call.
Question 2: The Federal Sentencing Guidelines for Organizations (FSGO) allow courts to reduce a company's culpability score for an effective compliance program. Which factor would INCREASE the culpability score under the FSGO?
- The company had a formal code of conduct and ethics hotline
- High-level personnel were involved in or condoned the offense (Correct answer)
- The company self-reported the offense to appropriate authorities
- The company cooperated fully with the government investigation
Correct answer: High-level personnel were involved in or condoned the offense
Under the FSGO, the culpability score is multiplied upward when high-level personnel participated in, condoned, or were willfully ignorant of the offense, reflecting the organization's greater culpability.
Question 3: A company subject to the California Consumer Privacy Act (CCPA) receives a consumer request to delete their personal information. Which category of data is expressly exempt from the deletion requirement?
- Purchase history stored in the company's CRM system
- Information necessary to complete a transaction the consumer originally requested (Correct answer)
- Email addresses collected for marketing newsletter subscriptions
- Browsing behavior data collected through third-party cookies
Correct answer: Information necessary to complete a transaction the consumer originally requested
The CCPA exempts businesses from honoring deletion requests when the information is necessary to complete the transaction for which it was collected or to fulfill a contract with the consumer.
Question 4: Which legal doctrine holds that a parent corporation may be held liable for the regulatory violations of its subsidiary when the parent exercises 'pervasive control' over the subsidiary's day-to-day operations?
- Respondeat superior
- Piercing the corporate veil (Correct answer)
- Vicarious liability through agency
- Successor liability doctrine
Correct answer: Piercing the corporate veil
Piercing the corporate veil allows courts to hold a parent corporation liable for a subsidiary's obligations when the subsidiary is so dominated and controlled that it is effectively an alter ego of the parent.
Question 5: Under the Sherman Antitrust Act, a per se violation occurs without requiring proof of actual anticompetitive effects. Which conduct qualifies as a per se violation?
- A company acquiring a competitor that holds less than 10% market share
- Horizontal price-fixing agreements among direct competitors (Correct answer)
- A company offering volume discounts to large customers only
- An exclusive dealing arrangement lasting less than one year
Correct answer: Horizontal price-fixing agreements among direct competitors
Horizontal price-fixing among competitors is a per se violation of the Sherman Act, meaning it is automatically illegal regardless of the prices set or the parties' intent.
Question 6: The Consumer Financial Protection Bureau (CFPB) has enforcement authority over which type of conduct under the Dodd-Frank Act?
- Insider trading by bank executives
- Unfair, deceptive, or abusive acts or practices (UDAAP) by financial service providers (Correct answer)
- Foreign exchange manipulation by US banks
- Excessive executive compensation at systemically important financial institutions
Correct answer: Unfair, deceptive, or abusive acts or practices (UDAAP) by financial service providers
The CFPB is authorized to prevent unfair, deceptive, or abusive acts or practices (UDAAP) by covered persons offering consumer financial products and services.
Question 7: Under the Export Administration Regulations (EAR), what is the 'de minimis rule' used to determine?
- Whether a foreign-produced item containing US-origin content requires a US export license (Correct answer)
- The minimum dollar threshold for filing Electronic Export Information (EEI)
- Whether a violation is subject to criminal versus civil penalties
- The amount of controlled technology a traveler may carry abroad without authorization
Correct answer: Whether a foreign-produced item containing US-origin content requires a US export license
The EAR's de minimis rule determines whether foreign-produced items incorporating controlled US-origin content exceed certain percentage thresholds (10% or 25%) that would subject the foreign item to EAR jurisdiction.
CCCP Regulatory Compliance & Legal Frameworks 4
Under the Telephone Consumer Protection Act (TCPA), which type of call or text is prohibited without prior express written consent?