CSP Industry Regulations 3 — Questions and Answers
Question 1: A CSP collects attendee email addresses at a live event. Which regulation most directly governs how they may use these addresses for future marketing?
- The Digital Millennium Copyright Act (DMCA)
- The CAN-SPAM Act (Correct answer)
- The Sarbanes-Oxley Act
- The Freedom of Information Act
Correct answer: The CAN-SPAM Act
The CAN-SPAM Act establishes requirements for commercial email, including the right to opt out and honest subject lines, which applies to speakers marketing their services.
Question 2: Under NSA guidelines, how should a CSP handle a situation where they are asked to deliver a keynote that contradicts their publicly stated values?
- Accept all engagements to avoid accusations of discrimination
- Decline or negotiate topic adjustments, as authenticity and ethical alignment are professional obligations (Correct answer)
- Deliver the keynote but include a personal disclaimer slide
- Report the organizer to the NSA ethics board before responding
Correct answer: Decline or negotiate topic adjustments, as authenticity and ethical alignment are professional obligations
NSA ethics support speakers maintaining personal and professional integrity, which includes the right to decline engagements that conflict with their values.
Question 3: Which of the following best describes 'independent contractor' status as it relates to most professional speaking engagements?
- Speakers are employees of the event organization and entitled to benefits
- Speakers are typically classified as independent contractors, responsible for their own taxes and insurance (Correct answer)
- Speaking fees are exempt from federal income tax
- Speakers must form an LLC to legally accept speaking fees
Correct answer: Speakers are typically classified as independent contractors, responsible for their own taxes and insurance
Professional speakers are generally classified as independent contractors, meaning clients do not withhold taxes and speakers must manage self-employment tax obligations.
Question 4: What is the primary purpose of errors and omissions (E&O) insurance for professional speakers?
- To cover physical injury to audience members during presentations
- To protect speakers from claims arising from mistakes, inaccuracies, or negligent advice in their presentations (Correct answer)
- To reimburse speakers for cancelled event fees
- To cover equipment damage during travel
Correct answer: To protect speakers from claims arising from mistakes, inaccuracies, or negligent advice in their presentations
E&O insurance protects professional speakers if a client claims they suffered financial harm due to incorrect information or advice given during a presentation.
Question 5: A CSP gives advice during a keynote that an attendee follows and subsequently suffers financial loss. What legal concept determines whether the speaker bears liability?
- Strict liability
- Negligence — whether the speaker owed a duty of care and breached it (Correct answer)
- Vicarious liability
- Sovereign immunity
Correct answer: Negligence — whether the speaker owed a duty of care and breached it
Negligence law requires proving duty, breach, causation, and damages, and whether a speaker is liable depends on whether reasonable care was exercised in the advice given.
Question 6: Which NSA membership requirement directly relates to regulatory compliance for using the CSP designation?
- Maintaining a website with client testimonials
- Meeting minimum revenue and presentation volume thresholds and adhering to the NSA Code of Professional Ethics (Correct answer)
- Completing 40 hours of business law continuing education annually
- Registering the CSP trademark with the USPTO
Correct answer: Meeting minimum revenue and presentation volume thresholds and adhering to the NSA Code of Professional Ethics
The CSP designation requires documented proof of speaking activity, revenue, and client evaluations, alongside ongoing adherence to the NSA Code of Professional Ethics.
Question 7: When a speaker's contract includes a 'kill fee' clause, what does this protect?
- The organizer from paying if the speaker cancels last minute
- The speaker from losing all income if the organizer cancels after preparation work has begun (Correct answer)
- Both parties equally in the event of a natural disaster
- The bureau from losing its commission on a cancelled engagement
Correct answer: The speaker from losing all income if the organizer cancels after preparation work has begun
A kill fee compensates the speaker for preparation time and lost opportunity when an organizer cancels an engagement after the speaker has begun preparation.
CSP Industry Regulations 3
A CSP collects attendee email addresses at a live event.
Which regulation most directly governs how they may use these addresses for future marketing?