DCA Ethical Sourcing & Trade Regulations 3

Question 1

Which industry initiative requires companies in the diamond pipeline to provide written warranties on invoices stating diamonds are conflict-free?

Accepted Answer

The World Diamond Council System of Warranties

Answer

The World Diamond Council System of Warranties requires all buyers and sellers along the supply chain to include conflict-free warranty statements on invoices.

Question 2

What is the primary limitation critics identify in the Kimberley Process Certification Scheme?

Accepted Answer

It narrowly defines 'conflict diamonds' as rebel-funded stones, excluding human rights abuses by state actors

Answer

Critics note that KPCS only addresses rebel-funded conflict diamonds, excluding abuses committed by government forces or state-sanctioned operations.

Question 3

A retailer selling lab-grown diamonds must disclose their origin under which U.S. regulatory authority's guidelines?

Accepted Answer

The Federal Trade Commission Jewelry Guides

Answer

The FTC Jewelry Guides require retailers to clearly disclose when a diamond is laboratory-grown to prevent deceptive trade practices.

Question 4

The Dodd-Frank Act Section 1502 requires U.S.-listed companies to report on 'conflict minerals.' Which of the following is NOT one of the minerals covered by this regulation?

Accepted Answer

Diamond

Answer

Section 1502 of Dodd-Frank covers tin, tantalum, tungsten, and gold (3TG) originating from the DRC region, but does not include diamonds.

Question 5

When a jeweler purchases polished diamonds from a supplier, the supplier's invoice should include a System of Warranties statement. What happens if the jeweler re-sells the diamonds?

Accepted Answer

The jeweler must include a new conflict-free warranty statement on their own invoice

Answer

Each participant in the polished diamond supply chain must include their own conflict-free warranty statement on invoices when selling to the next buyer.

(DCA) Certified Diamond Council of America Diamond Specialist Practice Test

(DCA) Certified Diamond Council of America Diamond Specialist Practice Test

DCA Ethical Sourcing & Trade Regulations 3