Deck 7: The Environment of Electronic Commerce Legal Ethical and Tax Issues

Question 1

The first obstacle that law enforcement agencies face when combating online crime is the issue of jurisdiction.

Answer 1

True

Question 2

A click-wrap acceptance occurs when a Web site user agrees to that site's end-user license agreements or its terms and conditions by clicking a button on the Web site.

Answer 2

True

Question 3

Creations that can be copyrighted include virtually all forms of artistic or intellectual expression.

Answer 3

True

Question 4

In general, trademark protection prevents another firm from using the same or a similar name, logo, or other identifying characteristics in a way that would cause confusion in the minds of potential buyers.

Question 5

In the physical world, geographic boundaries rarely coincide with legal and cultural boundaries.

Question 6

Any business that uses the Web becomes an international business instantly.

Question 7

Non-U.S. corporations and individuals cannot be sued in U.S. courts if they conduct business or commit tortious acts in the United States.

Question 8

People enter into contracts on a daily, and often hourly, basis.

Question 9

When a seller advertises goods for sale on a Web site, that seller is making an offer to potential buyers.

Question 10

In general, contracts are invalid if they are not in writing or signed.

Question 11

Any contract for the sale of goods includes implied warranties.

Question 12

A business cannot commit a tortious act by simply selling a product that causes harm to a buyer.

Question 13

Fictional characters cannot be trademarked.

Question 14

Physical boundaries are a convenient and effective way to announce the ending of one legal or cultural system and the beginning of another.

Question 15

People receive constructive notice that they have become subject to new laws and cultural norms when they cross an international border, even if they are not specifically warned of the changed laws and norms by a sign or a border guard's statement.

Question 16

The Statute of Frauds varies widely from state to state with regard to signed writings.

Question 17

Digital signatures are not legally valid on contracts in most countries.

Question 18

If an idea cannot be separated from its expression in a work, that work cannot be copyrighted.

Question 19

Businesses that operate on the Web must comply with the same laws and regulations that govern the operations of all businesses.

Question 20

Ethics issues are significant in the area of online privacy because laws have not kept pace with the growth of the Internet and the Web.

Question 21

The ability of a government to exert control over a person or corporation is called _____.

A) subjugation
B) jurisdiction
C) legitimacy
D) notice

Question 22

The details of _____ vary from state to state, but generally create personal jurisdiction over nonresidents who transact business or commit tortious acts in the state.

A) subject-matter jurisdiction
B) long-arm statutes
C) statewide jurisdiction
D) forum selection

Question 23

Differences in cultures throughout the world have resulted in different expectations about privacy in electronic commerce.

Question 24

_____ is a form of control over physical space and the people and objects that reside in that space, and is a defining characteristic of statehood.

A) Ethics
B) Potential
C) Legitimacy
D) Power

Question 25

In the United States, federal courts have subject-matter jurisdiction over issues related to _____.

A) bankruptcy
B) state tax matters
C) professional licensing
D) personal matters

Question 26

_____ mark the range of culture and reach of applicable laws very clearly in the physical world.

A) Territorial borders
B) Common laws
C) Ethical standards
D) Online restrictions

Question 27

Companies that sell through their Web sites establish nexus everywhere their goods are delivered to customers.

Question 28

A(n) _____ refers to any symbol executed or adopted for the purpose of authenticating a writing.

A) stamp
B) icon
C) mark
D) signature

Question 29

A _____ is an intentional or negligent action taken by a legal entity that causes harm to another legal entity.

A) click-wrap acceptance
B) tort
C) fair use
D) anticipatory repudiation

Question 30

Most states' use tax rates are lower than their sales tax rates.

Question 31

A(n) _____ is a commitment with certain terms made to another party.

A) award
B) offer
C) acceptance
D) consideration

Question 32

_____ is a court's authority to decide a particular type of dispute.

A) Territorial jurisdiction
B) Personal jurisdiction
C) Subject-matter jurisdiction
D) Long arm jurisdiction

Question 33

_____ is a country in which national culture permits the government to exert high levels of unchecked authority.

A) Denmark
B) Norway
C) Singapore
D) Sweden

Question 34

_____ is the idea that those subject to laws should have some role in formulating them.

A) Jurisdiction
B) Administration
C) Legitimacy
D) Integrity

Question 35

A(n) _____ clause is a statement that a contract will be enforced according to the laws of a particular state that then has personal jurisdiction over the parties who signed the contract regarding any enforcement issues.

A) forum selection
B) choice of law
C) after acquired property
D) deadlock provision

Question 36

A(n) _____ can be formed by two or more parties that act as if a contract exists, even if no contract has been written and signed.

A) voidable contract
B) implied contract
C) subordinate contract
D) virtual contract

Question 37

_____ is an expression of the change in rules when a physical boundary is crossed.

A) Legitimacy
B) Power
C) Notice
D) Offer

Question 38

Use taxes are levied by the United States and other countries on certain commodities as they are imported into the country.

Question 39

The connection between a tax-paying entity and a government is called jurisdiction.

Question 40

A(n) _____ is the expression of willingness to take an offer, including all of its stated terms.

A) judicial comity
B) tort
C) acceptance
D) consideration

Question 41

A(n) _____ is collected by a seller at each stage of a transaction.

A) value added tax
B) import tariff
C) property tax
D) use tax

Question 42

In the context of online crime, in a(n) _____, the perpetrator offers to share the proceeds of some large payoff with the victim if the victim will make a "good faith" deposit or provide some partial funding first.

Question 43

_____ is a general term that includes all products of the human mind.

Question 44

Disputes that arise when one person has registered a domain name that is an existing trademark or company name are settled by _____.

A) the World Intellectual Property Organization
B) common law
C) statutory law
D) the World Trade Organization

Question 45

A(n) _____ tax is a tax levied by a state on property used in that state that was not purchased in that state.

A) property
B) import
C) use
D) sales

Question 46

A _____ is a statement declaring that the seller will not honor some or all implied warranties.

A) defamatory statement
B) forum selection clause
C) warranty disclaimer
D) warranty negation

Question 47

A(n) _____ refers to the issue of determining whether an individual can commit a company to an online contract.

Question 48

In a(n) _____ approach, a company collecting information assumes that a customer does not object to the company's use of the information unless the customer specifically chooses to deny permission.

Question 49

The rules and regulations most of which are intended to limit the Web site owner's liability for what site visitors might do with information they obtain from the site are referred to as _____.

Question 50

A _____ is an act in which a seller unintentionally provides a harmful product.

A) fraud
B) misrepresentation
C) negligent tort
D) defamation

Question 51

Every kind of agreement or exchange between parties, no matter how simple, is a type of _____.

Question 52

A(n) _____ statement is a statement that is false and that injures the reputation of another person or company.

A) defamatory
B) warranty disclaimer
C) implied
D) copyright

Question 53

An entity becomes liable for _____ infringement if it is capable of supervising the infringing activity and obtains a financial benefit from the infringing activity.

Question 54

A(n) _____ is a right granted by a government to the author or creator of a literary or artistic work.

Question 55

The issue of _____ can arise when an employee of a company accepts a contract and the company later asserts that the employee did not have the authority to do so.

Question 56

If a company undertakes sufficient activities in a particular country, it establishes _____ with that country and becomes liable for filing tax returns in that country.

A) jurisdiction
B) notice
C) terms of service
D) nexus

Question 57

If a defamatory statement injures the reputation of a product or service instead of a person, it is called _____.

A) negligent tort
B) trademark dilution
C) product disparagement
D) per se defamation

Question 58

State courts have _____ jurisdiction over issues governed by state laws.

Question 59

A digital _____ is a digital code or stream embedded undetectably in a digital image or audio file.

A) validation code
B) watermark
C) patent
D) cookie

Question 60

In a(n) _____ policy approach, a company that collects information does not use the information for any other purpose unless the customer specifically chooses to allow that use.

A) opt-out
B) lock-in
C) fair-use
D) opt-in

Question 61

List the guidelines that acknowledge an organization's responsibility for respecting customer privacy and the importance of maintaining customers' trust.

Question 62

_____ taxes are levied by states and local governments on the real estate used in a business.

Question 63

A(n) _____ is used to identify services provided.

Question 64

A(n) _____ is an exclusive right granted by the government to an individual to make, use, and sell an invention.

Question 65

What is the difference between subject-matter jurisdiction and personal jurisdiction?

Question 66

_____ refers to a legal cause of action in which a court deems some types of statements to be so negative that injury is assumed.

Question 67

_____ laws, directed at large online retailers, are state laws that require online retailers to collect and remit sales taxes on sales they make in their states, even though the online retailers do not have nexus with the state.

Question 68

_____ taxes, which include sales taxes, use taxes, and excise taxes, are levied on the products or services that a company sells or uses.

Question 69

Explain the three essential elements of a contract.

Question 70

The _____ patent protects a specific set of procedures for conducting a particular business activity.

Question 71

_____ occurs when someone other than a domain name's owner changes the ownership of the domain name.

Question 72

_____ is the practice of registering a domain name that is the trademark of another person or company in the hopes that the owner will pay huge amounts of money to acquire the URL.

Question 73

_____ taxes are levied by national, state, and local governments on the net earnings generated by business activities.

Question 74

_____ law arises when elected legislative bodies pass laws.

Question 75

The _____ is the U.S. government agency charged with administering the country's tax laws.

Question 76

Describe a tort and identify the types of tortious acts that can be committed.

Question 77

The _____ publishes regulations and investigates claims of false advertising.

Question 78

A(n) _____ is a distinctive mark, device, motto, or implement that a company affixes to the goods it produces for identification purposes.

Question 79

The name or part of that name that a business uses to identify itself is called a(n) _____.

Question 80

Briefly discuss the application of import tariffs.