CML Business Practices & Professional Ethics 3 — Questions and Answers
Question 1: Under professional ethics standards, a CML who learns a competitor is operating without a license should:
- Use the information to undercut the competitor's pricing
- Report the unlicensed activity to the appropriate licensing authority (Correct answer)
- Warn shared customers privately
- Ignore it as a business matter between competitors
Correct answer: Report the unlicensed activity to the appropriate licensing authority
Reporting unlicensed competitors protects the public and upholds professional standards in the industry.
Question 2: What is the ethical obligation of a locksmith who discovers a significant security vulnerability in a client's existing lock system?
- Exploit the information in negotiations for a larger contract
- Inform the client of the vulnerability and recommend solutions (Correct answer)
- Keep the information confidential to avoid alarming the client
- Report the vulnerability only if asked directly
Correct answer: Inform the client of the vulnerability and recommend solutions
Locksmiths have a duty to inform clients of security risks they discover, as client protection is a core professional responsibility.
Question 3: Which record retention practice is considered best for a locksmith business from both legal and ethical standpoints?
- Retain records for 90 days then shred
- Keep records indefinitely in an unsecured location
- Maintain records for the legally required period in a secure system (Correct answer)
- Store records only for active customers
Correct answer: Maintain records for the legally required period in a secure system
Retaining records for the legally required period in a secure system balances compliance, liability protection, and data security.
Question 4: A locksmith business that accepts a contract to service a competitor's former client should:
- Request the competitor's proprietary key codes for the account
- Service the client based solely on their own assessment (Correct answer)
- Contact the former locksmith for background on the account
- Decline the job to avoid interfering with a competitor
Correct answer: Service the client based solely on their own assessment
A locksmith should conduct their own independent security assessment without seeking proprietary information from competitors.
Question 5: The ALOA Code of Ethics requires members to:
- Report all competitor pricing to ALOA headquarters
- Refuse service to customers who have switched locksmiths
- Conduct business honestly and maintain the dignity of the profession (Correct answer)
- Share master key codes with other ALOA members upon request
Correct answer: Conduct business honestly and maintain the dignity of the profession
The ALOA Code of Ethics centers on honesty, professional dignity, and ethical conduct in all business activities.
Question 6: A CML is hired to audit a corporation's physical security. The MOST ethical way to handle sensitive security findings is:
- Post findings on social media to demonstrate expertise
- Share findings with competing vendors to generate bids
- Deliver a confidential written report solely to authorized personnel (Correct answer)
- Discuss findings with employees to gauge their security awareness
Correct answer: Deliver a confidential written report solely to authorized personnel
Security audit findings contain sensitive information that must be delivered confidentially only to authorized decision-makers.
Question 7: When a locksmith business is sold, the ethical obligation regarding customer records is to:
- Destroy all records to protect former customer privacy
- Transfer records to the new owner with customer notification as required by law (Correct answer)
- Retain all records personally regardless of the sale
- Post a public notice listing all customer names and addresses
Correct answer: Transfer records to the new owner with customer notification as required by law
Business sales require proper transfer of customer records in compliance with privacy laws and with appropriate customer notification.
CML Business Practices & Professional Ethics 3
Under professional ethics standards, a CML who learns a competitor is operating without a license should: