Section: Analysis and Monitoring
Explanation/Reference:
To be effective a patch management program must be in place (due diligence) and detailed procedures would specify how and when the patches are applied properly (Due Care). Remember, the question asked for NOT a violation of Due Diligence, in this case, applying patches demonstrates due care and the patch management process in place demonstrates due diligence.
Due diligence is the act of investigating and understanding the risks the company faces. A company practices by developing and implementing security policies, procedures, and standards. Detecting risks would be based on standards such as ISO 2700, Best Practices, and other published standards such as NIST standards for example.
Due Diligence is understanding the current threats and risks. Due diligence is practiced by activities that make sure that the protection mechanisms are continually maintained and operational where risks are constantly being evaluated and reviewed. The security policy being outdated would be an example of violating the due diligence concept.
Due Care is implementing countermeasures to provide protection from those threats. Due care is when the necessary steps to help protect the company and its resources from possible risks that have been identifed. If the information owner does not lay out the foundation of data protection (doing something about it) and ensure that the directives are being enforced (actually being done and kept at an acceptable level), this would violate the due care concept.
If a company does not practice due care and due diligence pertaining to the security of its assets, it can be legally charged with negligence and held accountable for any ramifications of that negligence. Liability is usually established based on Due Diligence and Due Care or the lack of either.
A good way to remember this is using the first letter of both words within Due Diligence (DD) and Due Care (DC).
Due Diligence = Due Detect
Steps you take to identify risks based on best practices and standards.
Due Care = Due Correct.
Action you take to bring the risk level down to an acceptable level and maintaining that level over time.
The Following answer were wrong:
Security policy being outdated:
While having and enforcing a security policy is the right thing to do (due care), if it is outdated, you are not doing it the right way (due diligence). This questions violates due diligence and not due care.
Data owners not laying out the foundation for data protection:
Data owners are not recognizing the "right thing" to do. They don't have a security policy.
Network administrator not taking mandatory two week vacation:
The two week vacation is the "right thing" to do, but not taking the vacation violates due diligence (not doing the right thing the right way) Reference(s) used for this question Shon Harris, CISSP All In One, Version 5, Chapter 3, pg 110

It is recommended that testing does not exceed established frequency limits. For a plan to be effective, all components of the BCP should be tested at least once a year. Also, if there is a major change in the operations of the organization, the plan should be revised and tested not more than three months after the change becomes operational.
Source: BARNES, James C. & ROTHSTEIN, Philip J., A Guide to Business Continuity Planning, John Wiley & Sons, 2001 (page 165).

Explanation/Reference:
Media contention occurs when two or more network devices have data to send at the same time. Because multiple devices cannot talk on the network simultaneously, some type of method must be used to allow one device access to the network media at a time.
This is done in two main ways: carrier sense multiple access collision detect (CSMA/CD) and token passing.
In networks using CSMA/CD technology such as Ethernet, network devices contend for the network media. When a device has data to send, it first listens to see if any other device is currently using the network. If not, it starts sending its data. After finishing its transmission, it listens again to see if a collision occurred. A collision occurs when two devices send data simultaneously. When a collision happens, each device waits a random length of time before resending its data. In most cases, a collision will not occur again between the two devices. Because of this type of network contention, the busier a network becomes, the more collisions occur. This is why performance of Ethernet degrades rapidly as the number of devices on a single network increases.
In token-passing networks such as Token Ring and FDDI, a special network frame called a token is passed around the network from device to device. When a device has data to send, it must wait until it has the token and then sends its data. When the data transmission is complete, the token is released so that other devices may use the network media. The main advantage of token-passing networks is that they are deterministic. In other words, it is easy to calculate the maximum time that will pass before a device has the opportunity to send data. This explains the popularity of token-passing networks in some real-time environments such as factories, where machinery must be capable of communicating at a determinable interval.
For CSMA/CD networks, switches segment the network into multiple collision domains. This reduces the number of devices per network segment that must contend for the media. By creating smaller collision domains, the performance of a network can be increased significantly without requiring addressing changes.
The following are incorrect answers:
LAN topologies: Think of a topology as a network's virtual shape or structure. This shape does not necessarily correspond to the actual physical layout of the devices on the network. For example, the computers on a home LAN may be arranged in a circle in a family room, but it would be highly unlikely to find a ring topology there. Common topologies are: bus, ring, star or meshed. See THIS LINK for more information.
LAN transmission methods: refer to the way packets are sent on the network and are either unicast, multicast or broadcast. See THIS LINK for more information.
Contention Access Control: This is a bogus detractor.
Contention is a real term but Contention Access Control is just made up. Contention methods is very closely related to Media Access Control methods. In communication networks, contention is a media access method that is used to share a broadcast medium. In contention, any computer in the network can transmit data at any time (first come-first served). This system breaks down when two computers attempt to transmit at the same time. This is a case of collision. To avoid collision, carrier sensing mechanism is used. Here each computer listens to the network before attempting to transmit. If the network is busy, it waits until network quiets down. In carrier detection, computers continue to listen to the network as they transmit. If computer detects another signal that interferes with the signal it is sending, it stops transmitting.
Both computers then wait for random amount of time and attempt to transmit. Contention methods are most popular media access control method on LANs.
Reference(s) used for this question:
http://docwiki.cisco.com/wiki/Introduction_to_LAN_Protocols#LAN_Media-Access_Methods
http://en.wikipedia.org/wiki/Contention_%28telecommunications%29