Deck 31: Electronic Commerce

Question 1

The great majority of Canadian business corporations are registered in which of the following top-level domain names?

A))gov
B))com
C))edu
D))org
E))net

Answer 1

B

Question 2

Many of the legal risks associated with e-commerce can be avoided

A)with a well-designed website and detailed contractual terms and conditions.
B)by registering the business site with the Canada Revenue Agency.
C)if users have access to a number of linking sites.
D)by setting up an off-shore corporation not subject to stringent Canadian laws.

Answer 2

A

Question 3

Canada's Anti-Spam Legislation (CASL)prohibits the sending of or permitting of the sending of a commercial electronic message to an electronic address

A)after the recipient has added the sender to the "no send list."
B)without the consent of the sender.
C)without the consent of the Internet service provider.
D)without the consent of the recipient.

Answer 3

D

Question 4

Which of the following statements best describes "e-commerce"?

A)E-commerce is the fastest growing sector of the economy.
B)E-commerce includes the delivery of products by computer.
C)E-commerce is the use of computer networks to facilitate transactions.
D)Until 1995,e-commerce was almost non-existent.
E)all of the above

Question 5

Which of the following statements best describes cybersquatting?

A)Cybersquatting involves the registration of a domain name that contains a trademark or brand name.
B)In cybersquatting,the trademark owner often finds it less expensive to buy the name from the registered owner than to sue.
C)Cybersquatting almost certainly constitutes a trademark infringement.
D)In cybersquatting,the infringer often offers to sell the domain name to the trademark owner.
E)all of the above

Question 6

The registration by a person of a domain name identical to that of an existing company and with or without that company's logo is called cybersquatting.

Question 7

Electronic retailing can be divided into the following categories

A)supplies of tangible goods and supplies of services.
B)supplies of tangible goods and supplies of electronic goods.
C)supplies of electronic goods and supplies of non-electronic goods.
D)supplies of services and supplies of electronic goods.
E)supplies of tangibles goods,supplies of services,and supplies of electronic goods.

Question 8

The internet raises tort issues relating to damages,jurisdiction and limitation periods,as well as issues about how and by whom a tort is committed.The two torts most often associated with the internet are which of the following

A)libel and slander.
B)inducing breach of contract and trespass.
C)defamation and negligent security.
D)negligence and negligent investigation.
E)slander and nuisance.

Question 9

Top-level domain names are either "generic" or "national." Which of the following top-level domain names is national?

A))gov
B))ca
C))org
D))net
E))edu

Question 10

Which of the following is an example of the supply of a service by electronic retailing?

A)the subscription to an electronic magazine
B)the purchase of an airline ticket online
C)the transmission and downloading of software online
D)the transmission and downloading of music
E)the transmission of an order from an online catalogue

Question 11

The impact of Internet copyright infringement can be devastating.Computer software developers and music producers,for example,have seen their industries destroyed by

A)fair dealing.
B)digital music sales.
C)privacy.
D)piracy.
E)spam.

Question 12

Libel and defamation are two distinct areas of law when it comes to posting untrue comments meant to malign the reputation of another on the Internet.

Question 13

By posting material on a website,the author of that material provides his or her consent to its copying by others.

Question 14

Although domain names are addresses,it is common for a domain name to include an existing trademark.Consequently,the use of an exclusive domain name may

A)amount to cybersquatting.
B)amount to an infringement of another's trademark.
C)raise jurisdictional issues.
D)cause party autonomy.

Question 15

E-cash is a software payment system that allows

A)web-wrap agreements to be negotiated.
B)netbanking.
C)payment through the use of a debit card.
D)payment through the use of a plastic credit card.
E)the anonymous transfer of money over the Internet.

Question 16

The term "spam" means

A)the tort of trespass.
B)an invasion of privacy.
C)cybersquatting.
D)cybermoney.
E)electronic junk mail.

Question 17

In a net neutral environment,small and large businesses have equal access to all of the following EXCEPT

A)internet.
B)internet services.
C)e-commerce customers.
D)the marketplace.
E)lawmakers.

Question 18

Which of the following is NOT a matter that may be determined by the law of the jurisdiction in which a contract is made?

A)the parties to the contract
B)the capacity of the parties to contract
C)the applicability of consumer protection legislation
D)the legality of the contract
E)any terms that are to be implied

Question 19

The need for international agreements and action to control e-commerce is becoming increasingly obvious as a result of which of the following?

A)Different countries have different rules,thereby impeding the development of e-commerce by responsible enterprises.
B)Some countries are not regulating e-commerce.
C)Some countries are not taxing e-commerce.
D)Different countries have different rules,thereby discouraging the growth of more dubious activities.
E)all of the above

Question 20

Authors or owners who post material on a website

A)impliedly consent to it being reproduced.
B)have not impliedly consented to fair dealing by users for education purposes.
C)are not likely to take legal proceedings against commercial use of the material.
D)impliedly consent to its being copied.
E)will rarely take action against infringements that are non-commercial in nature.

Question 21

In relation to Internet crime,what is phishing?

Question 22

Infringement constitutes the violation of the rights of the owner of real property.

Question 23

Where a company's website makes a misleading or untrue statement about the goods or services which it supplies,the company may be found liable in misrepresentation.

Question 24

According to Canadian law,placing a copy of music on a shared directory does not constitute breach of copyright.

Question 25

The copying of material from a website is always protected by the "fair dealing" provisions of the Copyright Act.

Question 26

Explain what is meant by the term "e-commerce."

Question 27

Why is it important to determine where an e-contract is made?

Question 28

Define the term "web-wrap agreement" and describe the use of such agreements.

Question 29

Among other things,consumer protection legislation addresses acceptance by clicking an icon,communication of acceptance,electronic signatures,and writing.

Question 30

Like any other legal dispute,a generic domain name dispute may be resolved by either litigation or arbitration.

Question 31

Identify four business uses of the Internet other than consumer sales and business-to-business transactions.

Question 32

Identify the three categories into which electronic retailing can be divided.

Question 33

Why is it that web-wrap agreements must be designed to ensure that all intended terms are brought to the attention of potential customers?

Question 34

Define and describe the term "domain name."

Question 35

Explain the meaning of B2B and B2C transactions.

Question 36

Out-of-province retailers from whom Ontario consumers purchase goods over the Internet must comply with the provisions of Ontario consumer protection statutes.

Question 37

Trademark infringement on the internet is not always accidental.

Question 38

The tort most closely associated with the Internet is nuisance.

Question 39

What are the major areas of law that affect e-commerce?

Question 40

In order to develop a comprehensive system of law that arises out of e-commerce,what are the three main issues that must be addressed?

Question 41

Today,what are the factors that help to determine what law governs a particular transaction over the Internet?

Question 42

A number of years ago,before e-commerce gained momentum,in referring to the privacy of individuals,one of Canada's more noteworthy prime ministers made it clear that the government has no right to intrude into the bedrooms of the nation.Today,however,hackers in the privacy of their bedrooms can steal personal information or severely damage the computer equipment of others.This being the case,can the foregoing sentiment really be maintained,and should it be?

Question 43

E-commerce and the use of the internet create special challenges and opportunities for infringement.Briefly describe two of these.

Question 44

Explain the precautions that a business should take when the business is establishing an e-commerce site to be used to sell goods and services.

Question 45

Briefly describe the concept of cybersquatting and explain the circumstances whereby a person might register a domain name containing the trademark of another person.

Question 46

As a general rule,the courts of most countries accept jurisdiction over a contract if the defendant is a resident or domiciled there; in the case of an extra-territorial defendant,jurisdiction is accepted only where there is an appropriate connection with the country.Why is this general rule often unsatisfactory in e-commerce situations,especially those involving consumer transactions? What resolution has been suggested?