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

Question 1

Law enforcement agencies have difficulty combating many types of online crime.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Fictional characters cannot be trademarked.

Answer 3

False

Question 4

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

Question 5

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

Question 6

The legal systems of most countries include a concept called constructive notice.

Question 7

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

Question 8

Digital signatures are not legally valid for contract purposes.

Question 9

Any contract for the sale of goods includes implied warranties.

Question 10

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 11

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

Question 12

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

Question 13

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

Question 14

When a seller advertises goods for sale on a Web site, that seller is making an offer and inviting offers from potential buyers.

Question 15

Click-wrap acceptance is when a Web site user agrees to that site's EULA or its terms and conditions by clicking a button on the Web site.

Question 16

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

Question 17

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 18

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 19

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

Question 20

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

Question 21

A(n)____ is any symbol executed or adopted for the purpose of authenticating a writing.

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

Question 22

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

A)Jurisdiction
B)Personal jurisdiction
C)Subject-matter jurisdiction
D)Notice

Question 23

The level of power asserted by a government is limited to that which is accepted by the culture that exists within its ____ boundaries.

A)ethical
B)cultural
C)geographic
D)virtual

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)Culture
C)Legitimacy
D)Power

Question 25

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

A)contract exception
B)tort
C)crime
D)deposition

Question 26

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

Question 27

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

Question 28

In the United States, federal courts have ____ over issues governed by federal law.

A)subject-matter jurisdiction
B)personal jurisdiction
C)notice
D)legitimacy

Question 29

People receive ____ that they have become subject to new laws and cultural norms when they cross an international border.

A)implied notice
B)constructive warning
C)constructive notice
D)summary notice

Question 30

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 31

____ mark the range of culture and reach of applicable laws very clearly.

A)Territorial borders
B)Culture lines
C)Ethical standards
D)Online borders

Question 32

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

Question 33

A ____ clause is a statement that the contract will be enforced according to the laws of a particular state.

A)forum selection
B)jurisdiction
C)personal jurisdiction
D)subject-matter jurisdiction

Question 34

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

A)Jurisdiction
B)Effect
C)Legitimacy
D)Notice

Question 35

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)offer
B)implied contract
C)subordinate contract
D)virtual contract

Question 36

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

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

Question 37

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 38

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

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

Question 39

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

Question 40

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

Question 41

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

Question 42

A(n)____ is a statement declaring that the seller will not honor some or all implied warranties.

A)invalid contract
B)unsigned warranty
C)warranty disclaimer
D)warranty negation

Question 43

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)levy

Question 44

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

Question 45

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

A)defamatory
B)product defamation
C)product disparagement
D)company defamation

Question 46

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

Question 47

____________________ 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 48

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

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

Question 49

A ____ 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 50

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 51

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 52

The ____________________ of a copyrighted work includes copying it for use in criticism, comment, news reporting, teaching, scholarship, or research.

Question 53

The most common examples of business-related intentional ____________________ involve defamation, misrepresentation, fraud, and theft of trade secrets.

Question 54

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

Question 55

____ occurs when owner information maintained by a public domain registrar is changed in the registrar's database to reflect a new owner's name and business address.

A)Trademark infringement
B)Product disparagement
C)Domain name ownership change
D)Signatory change

Question 56

In most cases, a Web site visitor is held to the ____________________ even if that visitor has not read the text or clicked a button to indicate agreement with the terms.

Question 57

A(n)____ is assessed on the amount of value added at each stage of production.

A)VAT
B)import tariff
C)property tax
D)transaction tax

Question 58

A ____ statement is a statement that is false and that injures the reputation of another person or company.

A)defamatory
B)fraudulent
C)deceptive
D)critical

Question 59

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

A)WIPO
B)common law
C)statutory law
D)ACPA

Question 60

Governments that want to enforce laws regarding business conduct on the Internet must establish ____________________ over that conduct.

Question 61

Briefly discuss the application of import tariffs.

Question 62

The ______________________________ publishes regulations and investigates claims of false advertising.

Question 63

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

Question 64

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

Question 65

Mark Van Name and Bill Catchings, writing in PC Week in 1998, outlined four principles for handling customer data.List these principles.

Question 66

____________________ 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 67

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

Question 68

What is the difference between a contract and a tort?

Question 69

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

Question 70

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

Question 71

____________________ law arises when elected legislative bodies pass laws.

Question 72

____________________ taxes are levied on the products or services that the company sells or uses.

Question 73

The concept of nexus is similar in many ways to the concept of ____________________ jurisdiction.

Question 74

____________________ 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 75

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

Question 76

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

Question 77

The ____________________ patent, which protects a specific set of procedures for conducting a particular business activity, is quite controversial.

Question 78

____________________ taxes are levied by states and local governments on the personal property and real estate used in the business.

Question 79

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

Question 80

What are the elements of the contract when a consumer buys a product at the supermarket?