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

The FCRA requires that anyone accessing a consumer credit report must have a permissible purpose, such as employment screening or a court-ordered investigation.

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

Spoliation of evidence refers to destroying or failing to preserve evidence that may be relevant to litigation, which can result in legal sanctions.

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

In two-party (all-party) consent states, all parties to a conversation must consent to recording; recording without consent may be a criminal act.

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

Conflict of interest avoidance requires that PIs refrain from accepting cases where their personal, financial, or relational interests may compromise objectivity.

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

The Gramm-Leach-Bliley Act specifically prohibits using false pretenses to obtain customer financial information from financial institutions.

Private Investigator Exam Practice Test

Private Investigator Exam Practice Test

Private Investigator Exam Legal & Ethics 2