CMT Business Operations & Ethics Flashcards

Which federal law governs the disposal of electronic waste (e-waste) and requires responsible recycling?

Answer: Resource Conservation and Recovery Act (RCRA), supplemented by state-specific e-waste laws

RCRA and corresponding state laws regulate how electronics containing hazardous materials must be disposed of.

What does professional liability insurance (errors and omissions) protect a repair technician from?

Answer: Claims that the technician's work caused damage or loss to a customer's device or data

E&O insurance covers claims arising from professional mistakes, such as accidentally damaging a customer's device.

A customer wants to pay in cash and asks the technician not to issue a receipt. The correct response is to:

Answer: Issue a receipt regardless, as proper records are required for tax compliance and consumer protection

All transactions must be documented for tax purposes and to protect both parties in case of disputes.

What is the significance of the FTC's 'Magnuson-Moss Warranty Act' for mobile repair technicians?

Answer: It prohibits manufacturers from voiding warranties solely because a consumer used a third-party repair service

The Magnuson-Moss Warranty Act gives independent repair technicians legal backing when manufacturers threaten warranty voiding.

What is the recommended frequency for backing up business repair records and customer data?

Answer: Daily automated backups with offsite or cloud storage for disaster recovery

Daily automated backups ensure business continuity and protect against data loss from hardware failure.

What is meant by 'conflict of interest' in a mobile repair business context?

Answer: A situation where a technician's personal interests could improperly influence their professional decisions

Recognizing and disclosing conflicts of interest is essential to maintaining professional integrity.