Question

Chuck applied for a job as a car salesman. During the process, Chuck had to submit to a background check as well as a credit check. When Chuck asked why these were necessary, the dealership informed him that due to the nature of the job, and having access to sensitive information such as social security numbers, addresses, and the like, clearing these two checks is necessary. These checks are allowed under _____________.

Answer 1

Answer:

business necessity

Explanation:

Business necessity is a legal term referred to a business practice that is considered necessary for effective or efficient business operations. For a business decision to be considered a business necessity, it must be consistent with other similar business practices, i.e. it has to apply to all similar situations, not just specific situations or specific employees. This decision must also be related with the specific job requirements and tasks performed by the employees.

Answer 2

Answer:

The answer is The Fair Credit Reporting Act of 1970 (FCRA).

Explanation:

The Fair Credit Reporting Act of 1970 (FCRA) is a federal legislation designed to promote fair, accurate, and private background checks and sets national standards for employment screenings. Therefore, any employees can be safe and comfortable to have background and credit checks under the act.