Deck 17: International E-Commerce

Question 1

Parties that register a famous brand name or trademark as their Internet domain name are known as Cybersquatters.

Answer 1

True

Question 2

A minimum contacts statute grants jurisdiction where a tort, such as trademark infringement, that occurs outside the state causes injury inside the state.

Answer 2

False

Question 3

In the U.S., personal jurisdiction does not attach to a tort committed outside of a state unless the defendant purposely directed its activities to the state and derived substantial revenue from those activities.

Answer 3

True

Question 4

In general, a person or company that maintains a "passive" web site is not subject to the jurisdiction of a foreign court.

Question 5

In the United States, personal data and Internet privacy are regulated through comprehensive legislation.

Question 6

Tarnishment occurs when a defendant's use of a mark similar to a plaintiff's presents a danger that consumers will form unfavorable associations with the mark.

Question 7

The Telecommunications Act of 1996 is designed to prevent the abuse of telemarketing activities through telephone solicitations.

Question 8

The Federal Trademark Dilution Act of 1995 requires courts to find proof of a likelihood of confusion between the junior user (infringing party) and the senior user's products.

Question 9

Generally, EU Directive 95/46 restricts the transfer of personal data outside the EU to a third country that does not provide an adequate level of protection to that data.

Question 10

The safe harbor agreement between the EU and United States requires U.S. companies to provide privacy protection that is equivalent to that provided under EU law.

Question 11

A U.S. company can self-certify that is providing adequate privacy protection for European consumers by filling a letter annually with the Department of Commerce.

Question 12

The right to object contained in EU Directive 95/46 allows a data subject to object before personal data are disclosed for the first time to third parties.

Question 13

In the United States, the creator or owner of a database is granted a fifteen-year term of protection over that database.

Question 14

Authenticity, as it pertains to international electronic commerce, refers to the legal scope of a license granted.

Question 15

The rules governing EDI transactions are provided in contracts known as trading partner agreements.

Question 16

The United States has generally taken a regulatory approach to electronic commerce.

Question 17

Under the law of contracts, a non-interactive web page will generally be considered an invitation to make an offer.

Question 18

The Uniform Commercial Code allows the downloading of information to constitute a contractual acceptance.

Question 19

Under the UCC's proposed revised Article 2, additional terms found in the shrink-wrapped license do become a part of a contract if the purchaser or licensee is able to review them prior to being obligated to pay.

Question 20

Under UCITA, the formation of a contract is dependent on the receipt of the acceptance by the offeror.

Question 21

Under UCITA, a contract is not formed if the receiving party does not open or read an electronic acceptance.

Question 22

A contract cannot be formed by the interaction of an electronic agents.

Question 23

Clink-wrap licenses are not recognized under UCITA.

Question 24

UCITA prohibits a licensor from placing time bombs or disabling bugs in his software.

Question 25

In general, UCITA does not allow additional terms incorporated into the acceptance to become a part of the contract between an individual and an electronic agent.

Question 26

UCITA requires a licensor that makes information available by electronic means from an Internet site to give the licensee an opportunity to review the terms of the license.

Question 27

Both Germany and the U.S. provide some liability to Internet Service Providers (ISP) for the content of materials accessed through their services.

Question 28

The United Nations Commission on International Trade Law's (UNCITRAL) Model Law on Electronic Commerce (Model Law) views the appropriate court in which to bring a lawsuit in case of a contractual dispute as the performing party's principal place of business.

Question 29

The Uniform Customs and Practices for Documentary Credits (UCP 500) requires a signed writing.

Question 30

The SEC has authorized the direct public offering of stock over the Internet.

Question 31

Current business trends indicate that ________ percent of all transactions in the world will be conducted by electronic means by the end of the present decade:

A) 20%
B) 25%
C) 30%
D) 35%
E) 40%

Question 32

In the case Bensusan Restaurant Corp. v. King, the court held that:

A) An internet advertisement is sufficient to subject the advertiser to jurisdiction in another state
B) The creation of an internet advertisement satisfies the 'purposeful availment' requirement for a court to find personal jurisdiction
C) The creation of a web site accessible in another state is not sufficient to prove intent to do business in that state
D) Both A & B
E) None of the above

Question 33

The Braintech, Inc. v. Kostiuk case illustrates that:

A) Under the principle of comity, countries will honor the judgments of foreign courts.
B) Courts will not enforce foreign judgments if they determine that the exercise of personal jurisdiction was improper
C) Passive postings on the internet establish a 'real and substantial' connection with a foreign state for purposes of personal jurisdiction
D) All of the above

Question 34

The law passed to "protect consumers and American businesses, to promote the growth of online commerce, and to provide clarity in the law for trademark owners by prohibiting the bad-faith and abusive registration of distinctive marks as Internet domain names with the intent to profit from the goodwill associated with such marks" is known as the:

A) On-line Trademark Protection Act
B) Anti-Cybersquatting Consumer Protection Act
C) Consumer and Trademark Protection Act
D) Internet Consumer Protection Act

Question 35

Tags used to identify visitors to a website are known as:

A) Cookies
B) Bullets
C) Marks
D) Both A & B
E) All of the above

Question 36

The U.S. Privacy Act of 1994 restricts:

A) The use of data by the credit reporting industry
B) Telemarketing companies from soliciting by telephone
C) Government agencies from releasing personal information
D) None of the above

Question 37

The sending of bulk e-mailings of unsolicited advertisements for goods and services is known as:

A) Slamming
B) Spamming
C) Dumping
D) Spinning

Question 38

Federal wiretap requirements that were extended to include electronic communication such as e-mail are governed by:

A) Privacy Act of 1994
B) Electronic Communications Privacy Act of 1986
C) Telecommunications Act of 1996
D) Telecommunications Privacy Act of 1990
E) None of the above

Question 39

The law that places restrictions on the disclosure by telecommunications companies of information about subscribers' use of their services is the:

A) Electronic Communications Privacy Act of 1986
B) Privacy Act of 1994
C) Telephone Consumer Protection Act
D) Telecommunications Act of 1996

Question 40

EU Directive 95/46 grants a data subject a number of rights in regard to her personal data except which of the following:

A) Right of access
B) Blocking right
C) Right of refusal
D) Right of objection
E) Right of correction

Question 41

All of the following are major concerns for international electronic contracting except:

A) Authenticity
B) Enforceability
C) Confidentiality
D) Transferability

Question 42

The first generation of closed system electronic contracting was known as:

A) Electronic data interchange
B) E-commerce
C) Internet commerce
D) Electronic data commerce

Question 43

The Model Electronic Data Interchange Trading Partner Agreement was developed by the __________ to help facilitate EDI contracts.

A) International Chamber of Commerce
B) American Bar Association
C) EU Directorate on Electronic Commerce
D) U.N. Commission on International Trade Law (UNCITRAL)
E) None of the above

Question 44

A model law enacted to provides rules for the sale of software and the licensing of information is known as the:

A) Computer Software and Licensing Act
B) Model Computer Information Law
C) Law on Computer Information and Transfer
D) Uniform Computer Information Transaction Act

Question 45

In the United States product warranties are covered for Internet consumer transactions by the:

A) Langham Act
B) Dodd-Franklin Act
C) Magnuson-Moss Act
D) Taft Act

Question 46

All of the following warranties are recognized by UCITA except:

A) Warranty of Noninterference and Non-infringement
B) Implied Warranty of Merchantability of Computer Program
C) Implied Warranty of Performance
D) Implied Warranty of Licensee's Purpose
E) Implied Warranty of Informational Content

Question 47

The American Bar Association's Digital Signature Guidelines were established to:

A) Minimize electronic forgeries
B) Facilitate electronic commerce
C) Foster the reliable authentication of documents in computer form
D) All of the above

Question 48

The International Chamber of Commerce guide that addresses e-commerce authentication and
Confidentiality problems is titled:

A) General Usage for International Digitally Ensured Commerce
B) Guideline for Private and Public Key Encryption
C) Guide to Protecting and Promoting International Electronic Commerce
D) None of the above

Question 49

The SWIFT system provides a set of rules that govern the telecommunications transactions of the:

A) Financial industry
B) Maritime transport industry
C) Customs brokers and freight forwarders
D) Both B & C

Question 50

How have the courts approached the issue of personal jurisdiction in cases involving Internet activity? Cite any relevant cases.

Question 51

Discuss the statutory recourses available to a trademark owner in cases involving 'cybersquatting'.

Question 52

Compare the approach taken by the U.S. and the European Union in regard to Internet privacy. Be sure to include any relevant legislation in your analysis.

Question 53

What does the term 'authentication' mean in regard to electronic commerce? Describe the various techniques available in electronic commerce for authentication.

Question 54

Describe the problems associated with public security offerings over the Internet. How has the SEC attempted to address these issues?