CCSK Module 3 Unit 5 Answers – Legal Considerations for Cloud Knowledge Check Quiz Full 100% 2023 – 2024

This is CCSK Module 3 Unit 5 Answers – Legal Considerations for Cloud Knowledge Check Quiz. Our expert team has verified questions and answers with clear explanations to get a full score of 100%. You can review all these questions before taking the exam.

  1. The Cloud Security Alliance Security Guidance providers:

    • Information you should discuss with your attorneys.
    • Legal Guidance
    • Legal Recommendation
    • Legal Advice
    • Answers Explanation & Hint:

      Information you should discuss with your attorneys.

      The Cloud Security Alliance (CSA) Security Guidance provides information that you should discuss with your attorneys. It offers insights, best practices, and guidance related to security considerations in cloud computing. While it provides valuable information to assist organizations in understanding security issues, it’s important to involve legal professionals to ensure that your organization’s legal and regulatory requirements are met when dealing with cloud services. The guidance doesn’t provide specific legal advice or recommendations, but it highlights areas that may have legal implications and require legal expertise.

  2. The Australian Privacy Act of 1988 can apply to Australian customers, even if the cloud service provider is based elsewhere:

    • True
    • False
    • Answers Explanation & Hint:

      True

      Yes, the Australian Privacy Act of 1988 can apply to Australian customers even if the cloud service provider is based elsewhere. The Privacy Act regulates the handling of personal information by Australian government agencies and organizations covered by the Act. This includes businesses that have an Australian link, regardless of whether they are based in Australia or overseas.

      If a cloud service provider collects, handles, or processes personal information of individuals in Australia, the provider may be subject to the Privacy Act’s requirements, regardless of where the provider is located. The concept of having an “Australian link” means that the law applies to entities that carry on business in Australia or collect personal information in Australia.

      This extraterritorial reach of the Australian Privacy Act ensures that the privacy rights of Australian citizens and residents are protected even when their data is handled by entities located outside of Australia.

  3. What is the purpose of data localization law?

    • To require company to hire only local workers
    • To require that data about the country’s citizens be stored in the country
    • To require that all business documents be in the country’s official language
    • To require service providers to register with the country’s data protection commission
    • Answers Explanation & Hint:

      To require that data about the country’s citizens be stored in the country

      The purpose of data localization laws is to require that data about a country’s citizens or residents be stored within the country’s geographical borders. These laws are intended to enhance data privacy and security by ensuring that personal and sensitive information is subject to the country’s own data protection regulations and is not subject to the potentially different or weaker regulations of other jurisdictions. Data localization laws aim to give countries greater control over the storage and processing of their citizens’ data.

  4. Which of the following is correct?:

    • GDPR Stands for “Government Data Privacy Rule”.
    • GDPR Establishes fines of $1,000 per credit card number compromised
    • GDPR prohibits the transfer of personal data outside the EU or EEA to a country that does not offer similar privacy rights
    • GDPR requires that EU member state’s national laws impose network requirements on operators of essential services.
    • Answers Explanation & Hint:

      GDPR prohibits the transfer of personal data outside the EU or EEA to a country that does not offer similar privacy rights

      Out of the options provided, this statement is correct. The General Data Protection Regulation (GDPR) includes provisions that regulate the transfer of personal data outside the European Union (EU) or European Economic Area (EEA) to countries that do not provide an adequate level of data protection. This is to ensure that personal data remains protected even when it is transferred to countries with potentially lower privacy standards. The GDPR allows such transfers to occur under certain conditions, such as the use of appropriate safeguards like Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs).

  5. The Federal Government in the United States does not directly address issues of data privacy, but instead leave it up to the states to create laws that address privacy concerns:

    • True
    • False
    • Answers Explanation & Hint:

      False

      The statement is false. While it’s true that the United States does not have a comprehensive federal data privacy law similar to the General Data Protection Regulation (GDPR) in the European Union, the federal government does address issues of data privacy through various laws, regulations, and agencies.

      Some federal laws and agencies related to data privacy include:

      1. Health Insurance Portability and Accountability Act (HIPAA): This federal law establishes standards for the privacy and security of individually identifiable health information.
      2. Gramm-Leach-Bliley Act (GLBA): GLBA requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data.
      3. Children’s Online Privacy Protection Act (COPPA): This federal law regulates the collection of personal information from children under 13 years of age online.
      4. Federal Trade Commission (FTC): The FTC enforces laws related to consumer privacy and data security, taking action against companies engaged in unfair or deceptive practices.
      5. California Consumer Privacy Act (CCPA): While a state law, it has implications for companies that do business in California, regardless of their location.

      The U.S. does have a patchwork of federal and state laws addressing data privacy and security concerns. Efforts are being made to introduce comprehensive federal privacy legislation to provide a more cohesive framework for addressing these issues at the national level.

  6. If a business is located outside the European Union it does not have to comply with the privacy laws of the European Union.

    • True
    • False
    • Answers Explanation & Hint:

      False

      If a business is located outside the European Union, it does not automatically mean that it does not have to comply with the privacy laws of the European Union. The applicability of European Union privacy laws, such as the General Data Protection Regulation (GDPR), depends on whether the business processes the personal data of individuals within the EU.

      Under the GDPR, businesses located outside the EU are subject to its regulations if they process the personal data of EU residents. This means that even if a business is located outside the EU, if it offers goods or services to EU residents or monitors their behavior, it may be subject to GDPR requirements.

      The GDPR has extraterritorial reach, aiming to protect the personal data of EU residents regardless of where the processing takes place. Therefore, businesses outside the EU that handle EU citizens’ personal data need to adhere to GDPR requirements or risk facing penalties for non-compliance.

  7. In the United States, only entities that collect or process financial data or health data must comply wth privacy or security laws

    • True
    • False
    • Answers Explanation & Hint:

      False

      In the United States, privacy and security laws apply to a broader range of entities beyond those that collect or process financial or health data. While financial and health data are subject to specific regulations like the Health Insurance Portability and Accountability Act (HIPAA) for health data and the Gramm-Leach-Bliley Act (GLBA) for financial data, there are other laws and regulations that cover various aspects of privacy and security.

      For example:

      1. General Data Protection Regulation (GDPR): While GDPR is an EU regulation, it also applies to U.S. companies that process the personal data of individuals in the European Union.
      2. California Consumer Privacy Act (CCPA): This law grants California residents certain privacy rights and imposes obligations on businesses that handle their personal information, regardless of the type of data.
      3. Federal Trade Commission (FTC) Act: The FTC enforces privacy and data security regulations for businesses engaged in interstate commerce. The FTC can take action against companies that engage in unfair or deceptive practices related to consumer privacy.
      4. Children’s Online Privacy Protection Act (COPPA): This law regulates the collection of personal information from children under 13 years of age online, regardless of the type of data collected.
      5. Various State Privacy Laws: Several U.S. states have introduced their own privacy laws, such as the New York SHIELD Act, Nevada’s Privacy Law, and more.

      These examples demonstrate that privacy and security laws extend beyond just financial and health data to encompass a broader range of data and industries.

  8. Which of the following is a standard?

    • COPPA
    • APPI
    • PCI DSS
    • GDPR
    • Answers Explanation & Hint:

      PCI DSS

      Among the options provided, PCI DSS (Payment Card Industry Data Security Standard) is a standard. PCI DSS is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. It’s aimed at preventing credit card fraud and enhancing payment card data security.

      The other options mentioned are also regulatory frameworks or laws related to data protection and privacy:

      • COPPA (Children’s Online Privacy Protection Act) is a U.S. law that imposes certain requirements on websites and online services that collect personal information from children under 13 years of age.
      • APPI (Act on the Protection of Personal Information) is a Japanese law that regulates the handling of personal information by businesses and organizations.
      • GDPR (General Data Protection Regulation) is a European Union regulation that governs data protection and privacy for individuals within the EU and the European Economic Area.
  9. When selecting a cloud provider, if a provider won’t negotiate a contract:

    • Always choose another provider
    • Read the contract carefully, and consult with your advisors, to evaluate the terms and understand the potential risk.
    • Alway trust the provider
    • Contracts are not enforceable in cloud due to the wide range of jurisdictions.
    • Answers Explanation & Hint:

      Read the contract carefully, and consult with your advisors, to evaluate the terms and understand the potential risk.

      If a cloud provider won’t negotiate a contract, it’s important to carefully review the terms of the contract they provide. Reading the contract thoroughly helps you understand the terms and conditions that you would be agreeing to when using their services. Consulting with legal advisors, procurement specialists, and other relevant experts can provide you with insights into the potential risks, legal implications, and any hidden clauses within the contract.

      Choosing another provider might not always be necessary, as the contract terms could still align with your needs and requirements. However, the key is to be well-informed and ensure that you are comfortable with the terms before entering into an agreement. Trusting the provider blindly can expose you to risks that you might not have anticipated.

      Contracts in the cloud are indeed enforceable, but the enforceability can depend on factors such as jurisdiction, applicable laws, and the specific terms of the contract. It’s essential to understand the legal implications and your rights and responsibilities under the contract.

  10. Cloud consumers are ultimately responsible for understanding the legal implications of using a particular cloud provider and service.

    • True
    • False
    • Answers Explanation & Hint:

      True

      Yes, cloud consumers are ultimately responsible for understanding the legal implications of using a particular cloud provider and service. When engaging with a cloud service provider, consumers must review and understand the terms of service, service level agreements (SLAs), data protection policies, and other legal documents associated with the service. It’s essential to be aware of issues such as data ownership, data protection, liability, intellectual property rights, compliance, and jurisdictional matters.

      Cloud providers typically provide legal agreements that outline their responsibilities, limitations, and terms of service. However, consumers need to ensure that the terms align with their organization’s needs, regulatory requirements, and risk tolerance. Ignoring or misunderstanding these legal implications can lead to potential conflicts, data security breaches, or regulatory violations. Therefore, cloud consumers should thoroughly review and comprehend the legal aspects before engaging with a specific cloud provider.

  11. A contract with a cloud service provider can fulfill all of the following except one

    • Clarify what happen when the service is terminated
    • Prevent a breach of security
    • Clarify the price for the service
    • Define the minimum security measure taken by the cloud provider
    • Clarify whether metadata can be reused for secondary purposes.
    • Answers Explanation & Hint:

      Prevent a breach of security

      While a contract with a cloud service provider can include terms related to security measures and expectations, it cannot guarantee to prevent a breach of security. Security breaches can occur due to a variety of factors, including vulnerabilities, cyberattacks, human error, and other unforeseen circumstances. A contract can outline security measures, responsibilities, and protocols, but it cannot eliminate the possibility of a breach entirely. Instead, it aims to establish the framework for managing security and responding to incidents if they occur.

  12. If you own the data, it is still possible for your CSP to own the metadata:

    • True
    • False
    • Answers Explanation & Hint:

      True

      Yes, it’s possible for your Cloud Service Provider (CSP) to own the metadata even if you own the data. Metadata refers to the data about the data itself, providing information about the characteristics, attributes, and properties of the actual data. While you may own the primary data (content), the CSP might have ownership or control over the metadata associated with that data, especially if it’s generated or managed within their system.

      It’s important to review the terms of service and data usage policies of your CSP to understand how they handle metadata and data ownership. In some cases, CSPs might use metadata for analytics, optimization, indexing, and other purposes. This distinction between data and metadata ownership underscores the complexity of data management and ownership in cloud environments.

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