CFD Regulatory Compliance 3 — Questions and Answers
Question 1: When a floral business hires employees under 18 years old, which federal law sets restrictions on their working hours and tasks?
- Fair Labor Standards Act (FLSA) (Correct answer)
- Family and Medical Leave Act (FMLA)
- Americans with Disabilities Act (ADA)
- National Labor Relations Act (NLRA)
Correct answer: Fair Labor Standards Act (FLSA)
The FLSA's child labor provisions restrict hours and types of work for minors, including limiting use of certain equipment like box cutters.
Question 2: Which certification body administers the Certified Floral Designer (CFD) credential in the United States?
- American Institute of Floral Designers (AIFD) (Correct answer)
- American Floral Endowment (AFE)
- Society of American Florists (SAF)
- Floral Design Institute (FDI)
Correct answer: American Institute of Floral Designers (AIFD)
AIFD administers the CFD examination and credential, setting professional standards for floral design education and practice.
Question 3: A florist's cold storage unit uses refrigerants. Under EPA Section 608, what is required when refrigerant is serviced?
- Any employee may vent refrigerant during repair
- Only certified technicians may service refrigerant-containing equipment (Correct answer)
- Refrigerants must be vented outdoors to prevent pressure buildup
- No federal rules apply to small commercial units
Correct answer: Only certified technicians may service refrigerant-containing equipment
EPA Section 608 prohibits venting regulated refrigerants and requires technicians who service refrigeration equipment to be EPA-certified.
Question 4: A wedding florist collects customer credit card data online. Which standard governs how that payment data must be protected?
- HIPAA
- PCI DSS (Correct answer)
- FERPA
- SOX
Correct answer: PCI DSS
The Payment Card Industry Data Security Standard (PCI DSS) applies to any business that stores, processes, or transmits cardholder data.
Question 5: Under IRS rules, a self-employed freelance florist must pay self-employment tax to cover:
- State income tax only
- Both the employer and employee shares of Social Security and Medicare taxes (Correct answer)
- Only Medicare tax
- Federal income tax exclusively
Correct answer: Both the employer and employee shares of Social Security and Medicare taxes
Self-employed individuals pay self-employment tax (15.3%) covering both employer and employee portions of Social Security (12.4%) and Medicare (2.9%).
Question 6: A floral shop's delivery van requires which type of commercial insurance coverage under most U.S. state laws?
- Personal auto insurance is sufficient for any business use
- Commercial auto liability insurance (Correct answer)
- Homeowner's insurance with a rider
- No insurance is required for vehicles under 10,000 lbs
Correct answer: Commercial auto liability insurance
Vehicles used for business delivery purposes must be covered by commercial auto insurance, as personal auto policies typically exclude business use.
Question 7: Which federal law requires floral businesses with 50 or more employees to offer unpaid, job-protected leave for family or medical reasons?
- OSHA
- FLSA
- FMLA (Correct answer)
- COBRA
Correct answer: FMLA
The Family and Medical Leave Act (FMLA) entitles eligible employees of covered employers to take up to 12 weeks of unpaid, protected leave per year.
CFD Regulatory Compliance 3
When a floral business hires employees under 18 years old, which federal law sets restrictions on their working hours and tasks?