Private Investigator Exam Guide 5 — Questions and Answers
Question 1: What is 'dumpster diving' in the context of PI investigations, and is it generally legal?
- Searching underwater for submerged evidence; requires a permit
- Retrieving discarded items from trash placed in a public area; generally legal once trash is abandoned (Correct answer)
- Accessing a dumpster on private property with owner permission; requires written consent
- Reviewing digital trash files on a computer; always illegal
Correct answer: Retrieving discarded items from trash placed in a public area; generally legal once trash is abandoned
Once trash is placed in a public area for collection, it is generally considered abandoned, making retrieval legal under California v. Greenwood.
Question 2: Which of the following best describes 'open source intelligence' (OSINT)?
- Intelligence gathered through covert government spy satellites
- Information collected from publicly available sources such as social media, news, and public records (Correct answer)
- Data extracted from password-protected corporate databases
- Confidential informant testimony obtained by police
Correct answer: Information collected from publicly available sources such as social media, news, and public records
OSINT refers to the systematic collection and analysis of information from publicly available sources, a legal and widely used PI technique.
Question 3: A PI operating across state lines must be aware that:
- A single state license is valid nationwide under federal reciprocity
- Each state has its own licensing laws, and working without a valid license in another state may be illegal (Correct answer)
- The federal PI license covers all 50 states automatically
- Only FBI agents can conduct investigations that cross state lines
Correct answer: Each state has its own licensing laws, and working without a valid license in another state may be illegal
PI licensing is state-specific with no universal federal license, meaning investigators must comply with each state's requirements when working across borders.
Question 4: What ethical rule should guide a PI when a client's instructions conflict with the law?
- Follow the client's instructions since they are paying for the service
- Negotiate a middle ground that satisfies the client while bending legal rules minimally
- Refuse to carry out illegal instructions and potentially withdraw from the case (Correct answer)
- Comply with instructions but document disagreement in writing
Correct answer: Refuse to carry out illegal instructions and potentially withdraw from the case
A PI must refuse to follow instructions that require illegal actions; professional codes of conduct and law both require declining unethical or unlawful tasks.
Question 5: What is the significance of a PI obtaining a signed client contract before starting an investigation?
- It grants the PI police powers during the investigation
- It defines the scope, fees, and legal boundaries of the engagement, protecting both parties (Correct answer)
- It automatically makes all collected evidence admissible in court
- It exempts the PI from state licensing requirements
Correct answer: It defines the scope, fees, and legal boundaries of the engagement, protecting both parties
A signed contract clearly establishes expectations, scope, and legal responsibilities, reducing disputes and protecting both the PI and client.
Question 6: Which of the following describes a 'conflict of interest' situation a PI must avoid?
- Accepting multiple unrelated clients in different cities simultaneously
- Representing opposing parties in the same case without full disclosure and consent (Correct answer)
- Specializing in more than one type of investigation
- Charging different rates for different types of cases
Correct answer: Representing opposing parties in the same case without full disclosure and consent
Representing adversarial parties in the same matter without disclosure is a conflict of interest that violates professional ethics and can harm clients.
Question 7: Under the Fair Credit Reporting Act (FCRA), a PI acting as a consumer reporting agency must:
- Share all reports freely with any requesting party
- Follow strict rules on permissible purpose, accuracy, and consumer rights when compiling investigative reports (Correct answer)
- Obtain a court order before compiling any report on an individual
- Report all findings to the Federal Trade Commission immediately
Correct answer: Follow strict rules on permissible purpose, accuracy, and consumer rights when compiling investigative reports
When a PI's compiled report qualifies as a consumer report under the FCRA, they must comply with rules on permissible purpose, accuracy, and consumer dispute rights.
Private Investigator Exam Guide 5
What is 'dumpster diving' in the context of PI investigations, and is it generally legal?