Deck 34: Electronic Commerce

Question 1

The frowth of e- commerce is linked to the increasing use of

A) networks.
B) other methods of payment.
C) the Internet.
D) credit cards.
E) the Computer.

Answer 1

C

Question 2

Which of the following is NOT a top- level domain name?

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

Answer 2

E

Question 3

Goods and services ordered through e- commerce may be paid for by the consumer using

A) smart cards.
B) cash.
C) e- cash.
D) debit cards.
E) all of the above

Answer 3

E

Question 4

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

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

Question 5

Which of the following about e- cash is NOT true?

A) may be used in small- value transactions
B) does not allow the e- cash funds to be negotiated to third parties
C) permits the instantaneous transfer of funds between parties
D) allows for the anonymous transfer of money over the Internet
E) allows for the secure transfer of money over the Internet

Question 6

Which of the following is true about a domain?

A) A domain name constitutes a trademark.
B) Top level domain names are either generic or national.
C) Top level domains, such as ca., are assigned by interNIC.
D) A domain name always has precisely two parts separated by a dot.
E) The registration of a domain name is very expensive.

Question 7

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

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

Question 8

Ken is using a domain name confusingly similar to one previously used by Sally. Sally intends to sue Ken. Sally would be most likely to succeed in an action for:

A) copyright infringement
B) breach of confidentiality
C) defamation
D) trademark infringement
E) passing off

Question 9

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

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

Question 10

Electronic cash coins are stored in the following location:

A) on a magnetic "swipe strip."
B) on a plastic credit card.
C) on the user's hard drive.
D) on debit cards.
E) in the user's bank account and accessed through netbanking.

Question 11

For a court to assume jurisdiction in a dispute for breach of contract involving an Internet transaction, the plaintiff will have to show:

A) that the defendant has assets within the jurisdiction in which the court is located
B) that there is a real and substantial connection between the transaction and the jurisdiction in which the court is located
C) that the defendant resides within the jurisdiction in which the court is located
D) that the contract contains a clause giving exclusive jurisdiction to the courts in that location
E) that the plaintiff resides within the jurisdiction in which the court is located

Question 12

E- cash is a software payment system that allows

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

Question 13

Which of the following statements about the infringement of trademarks is true?

A) A similar trademark always results in an infringement.
B) The authorised use of the trademark is an infringement.
C) Infringement is less likely in the use electronic commerce.
D) Passing- off does not infringe trademarks.
E) The Internet greatly increases the probability of trademark infringements.

Question 14

The Internet is

A) the cyber information system.
B) the interconnected logical networks that link millions of computers worldwide.
C) e- cash.
D) cyberspace.
E) the space within the computer.

Question 15

Electronic retailing can be divided into the following categories:

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

Question 16

The law of the jurisdiction in which a contract is made may determine such matters as

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

Question 17

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

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

Question 18

Authors or owners who post material on a Web site

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

Question 19

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 20

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

Question 21

About which of the following aspects of e- commerce and the Internet has the government expressed concern?

A) gambling
B) dissemination of pornography
C) dissemination of hate literature
D) evasion of taxes
E) all of the above

Question 22

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

Question 23

Identify three factors that have promoted the rapid growth of the Internet.

Question 24

Copyright laws do not apply to documents and materials reproduced on the Internet.

Question 25

The practice whereby a person registers a domain name that includes a well known trademark or brandname, and then offers to sell the domain name to the owner of the mark or brand, is referred to as "domain theft."

Question 26

Which of the following organisations has not been involved in the drafting of international agreements, declarations, treaties, and conferences to control e- commerce internationally?

A) WTO
B) WIPO
C) UNCITRAL
D) OECD
E) G8

Question 27

The registered Internet address of a Web site is called a cybername.

Question 28

The copyright owner that posts information on a Web site is most likely to sue the following:

A) a student who finds an interesting piece of information and forwards it to a friend.
B) a copy company that downloads the entire text and offers it for sale to others.
C) a student who finds a piece of information and incorporates it into a school term paper.
D) a teacher who edits the material and incorporates it into his or her teaching materials.
E) an individual that downloads information and shares it with a co- worker.

Question 29

Which of the following governments has enacted privacy legislation that restricts the use of personal information by the private sector?

A) Quebec provincial government
B) Ontario provincial government
C) federal government
D) Alberta provincial government
E) British Columbia provincial government

Question 30

The biggest worry of governments with respect to e- commerce is

A) how to tax it.
B) the use of e- cash facilitates fraud and tax evasion.
C) reduced number of persons involved eliminates the audit trail.
D) avoidance of income tax by moving operations offshore.
E) the evasion of sales tax and customs duties.

Question 31

The term "spam" means

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

Question 32

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

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

Question 33

The legislation enacted by the federal government of Canada to resolve some of the problems with electronic commerce and certain formal contract requirements is

A) the Restriction of Access to Information Act.
B) the Personal Information Protection and Electronic Documents Act.
C) the World Intellectual Property Act.
D) the Privacy Act.
E) the Model Law in Electronic Commerce Act.

Question 34

A Web wrap agreement is an internet document that wraps around the Web site.

Question 35

The tort most closely associated with the internet is nuisance.

Question 36

Other than consumer sales, the business uses of the internet could include (1) its use as an advertising medium; (2) use for investment broking; (3) its use for share trading; and (4) its use for gambling.

Question 37

Electronic retailing includes supplies of intangible goods.

Question 38

According to Canadian law, someone whose reputation has been injured by statements published over the Internet can sue for defamation in the jurisdiction where the plaintiff lives.

Question 39

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

Question 40

Cybersquatting is a form of trademark infringement.

Question 41

Give four reasons why the Canadian Radio- Television and Telecommunications Commission (CRTC) has no intention of exercising general supervision over the Internet.

Question 42

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

Question 43

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

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

Define and describe the term "cybersquatting."

Question 46

Explain why is it important to determine where a contract was made and how this affects e- commerce transactions?

Question 47

Why is it important to determine which legal system governs a contract?

Question 48

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

Question 49

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?

Question 50

Define and describe the term "domain name."

Question 51

Identify some of the potential benefits of e- commerce.

Question 52

Describe three different ways in which consumers can pay for goods and services electronically.

Question 53

Explain the five main steps that must be taken to establish an online business.