Private Investigator Exam Legal & Ethics 2

Question 1

Under the Fair Credit Reporting Act (FCRA), what must a PI have before obtaining a consumer credit report on a subject?

Accepted Answer

A permissible purpose as defined by FCRA

Answer

A court order

Answer

Client's notarized request

Answer

State PI license number

Question 2

What is 'spoliation of evidence' and why is it relevant to PI work?

Accepted Answer

The intentional or negligent destruction of evidence, which can harm a case

Answer

The deterioration of surveillance equipment

Answer

Presenting false evidence to a client

Answer

Sharing case files without permission

Question 3

In a two-party consent state, a PI records a phone call with only their own consent. This recording is:

Accepted Answer

Potentially illegal and inadmissible in that state

Answer

Admissible as long as the PI was a party to the call

Answer

Legal because the PI is a licensed investigator

Answer

Legal if the client authorized it

Question 4

Which ethical principle requires a PI to avoid taking cases where personal interests conflict with the client's interests?

Accepted Answer

Conflict of interest avoidance

Answer

Confidentiality

Answer

Non-maleficence

Answer

Duty of care

Question 5

What is the primary legal risk of using a pretext to obtain information from a bank about a subject?

Accepted Answer

Potential violation of the Gramm-Leach-Bliley Act (GLBA), which prohibits financial data pretexting

Answer

Violation of the PI code of conduct

Answer

Violation of the Fourth Amendment

Answer

FCRA non-compliance

Question 6

A client asks a PI to find out where a person lives without disclosing why. The PI should:

Accepted Answer

Determine the purpose and ensure it is lawful before proceeding

Answer

Proceed immediately since address lookups are routine

Answer

Refuse all address location requests

Answer

Provide the address only to law enforcement