CDG Industry Ethics & Market Knowledge 2

Question 1

A client asks you to grade their diamond higher than it deserves to increase its resale value. What is the ethical response?

Accepted Answer

Decline and explain that accurate grading protects both parties

Answer

Accurate grading is a foundational ethical obligation; falsifying grades harms consumers and undermines market trust.

Question 2

The Kimberley Process Certification Scheme (KPCS) was established primarily to:

Accepted Answer

Prevent conflict diamonds from entering the legitimate trade

Answer

The KPCS was created in 2003 to certify that rough diamonds are not used to finance rebel movements or wars.

Question 3

Which organization publishes the International Diamond Grading System widely used by gemological laboratories?

Accepted Answer

GIA

Answer

The Gemological Institute of America (GIA) developed and publishes the International Diamond Grading System.

Question 4

A retail jeweler inflates a diamond's carat weight on a sales receipt. Under US consumer protection law, this constitutes:

Accepted Answer

Deceptive trade practice or fraud

Answer

Misrepresenting a diamond's carat weight on a receipt violates FTC regulations and constitutes deceptive trade practice.

Question 5

When a gemologist discovers a previously undetected fracture filling during estate appraisal, they should:

Accepted Answer

Disclose the treatment fully in the appraisal report

Answer

Full disclosure of any detected treatment is required in an ethical and professional appraisal report.

(CDG) Certified Diamond Grader Practice Test