Question 1

David Stanley has created a new company that will manufacture beverage containers.He intends to call his company Stanley Cup Inc.He also intends to conduct business online.He therefore wants to use the domain name www.stanleycup.ca.Which of the following statements is TRUE?

Accepted Answer

The use of the domain name "stanleycup.ca" would be regulated by the Canadian Internet Registration Authority (CIRA), which manages the .ca domain space. This organization has policies in place for the registration and management of .ca domain names, including dispute resolution processes.

Question 2

Within the context of jurisdictional issues and electronic commerce, which of the following statements is TRUE?

Accepted Answer

The real and substantial connection test considers several connecting factors, including the location of the content provider, host server, intermediaries, and end user. This test is commonly used to determine jurisdictional issues in electronic commerce. Option A is incorrect because the fact that online communication rarely fails does not negate the importance of jurisdictional issues. Option B is incorrect because the but-for test is typically used to establish causation, not jurisdiction. Option C is incorrect because the effects-based test focuses on the impact of the defendant's conduct, not how damage was caused. Option D is incorrect because the passive versus active test is not a commonly used test for jurisdiction in electronic commerce.

Question 3

The Supreme Court of Canada's decision in Crookes v Newton is best known for the proposition that

Accepted Answer

The Supreme Court of Canada's decision in Crookes v Newton established that a simple hyperlink does not amount to republication for the purposes of the tort of defamation. This means that simply linking to defamatory content does not make the linker liable for defamation.

Question 4

Canadian and provincial privacy laws can be said to reduce the risk of identity theft.Which of the following statements is an example of how privacy laws might accomplish this task?

Accepted Answer

Requiring businesses to destroy personal information that is no longer needed ensures that there is less personal information available for potential identity thieves to access. This helps to reduce the risk of identity theft. The other options do not directly address the issue of reducing the risk of identity theft. A would be unfeasible since there are situations in which businesses need to disclose personal information (e.g. for legal or safety reasons). B might be a helpful fraud-detection measure, but it does not necessarily reduce the risk of identity theft. D might help to prevent identity theft within the business, but it does not address external threats. E restricts the use of electronic storage but does not necessarily address paper-based risks.

Question 5

The case of Rudder v Microsoft dealt with the creation of online contracts.The judge held that

Accepted Answer

The case of Rudder v Microsoft established that merely clicking the "I Agree" prompt on an Internet contract can be sufficient to bind a party to all contractual terms, including onerous and unusual terms. This means that consumers should be aware of the terms and conditions they are agreeing to before clicking "I Agree."

Question 6

Which of the following is not correct?

Accepted Answer

CASL stands for Canadian Anti-Spam Legislation, not Canadian Anti-Spam Law.

Question 7

Which of the following statements is correct?

Accepted Answer

PIPEDA stands for Personal Information Protection and Electronic Documents Act, not Private Information Protection and Electronic Documents Act. The other statements are incorrect as FAQ stands for Frequently Asked Questions, IMTP stands for Internet Traffic Management Practices, and ITRC stands for Identity Theft Resource Center.

Question 8

Sam wanted to book his wedding reception at the Jasper Lodge.He went to the Lodge's website and entered the information required to book a block of 40 guest rooms.Out of caution, however, he asked his fiancé, Lilly, for her thoughts.After she explained to him that many of her family members would find it difficult to get to Jasper, Sam decided to cancel the booking.Unfortunately, when he intended to hit the "Cancel" button, he actually hit the "Make Booking" button.Sam immediately realized his mistake and he now wants to escape liability for an enormous contract with the Lodge.Which of the following will not be an important consideration if the issue goes to court?

Accepted Answer

Contacting the credit card company to cancel payment to the Lodge is not an important consideration in this situation because it is a separate action that Sam can take regardless of whether he is liable for the contract or not. The other choices are all important considerations that may impact the outcome of the case.

Question 9

Kamil created an electronic contract with Rogers Cable Inc.That contract contained a paragraph that purported to allow the company to change the terms of the agreement by (i) sending a letter through the mail to Kamil, (ii) sending an email to Kamil, or (iii) posting a notice of the changes on its website.Which of the following statements is TRUE?

Accepted Answer

Rogers can rely on the paragraph if it took reasonable steps to notify Kamil about the terms, including the modification clause, before or at the time the contract was formed. This is a common practice in contract law, where parties must be made aware of the terms to which they are agreeing.

Question 10

The phrase "net neutrality" refers to the fact that

Accepted Answer

Net neutrality refers to the idea that all data on the internet should be treated equally and that internet service providers should not be able to discriminate or charge differently based on the type of content or website being accessed. This means the internet should act as a set of pipes through which data flows from sender to receiver without any intervention by the pipe owners.

Question 11

Which of the following propositions is best supported by the decision in Zhu v Merrill Lynch HSBC?

Accepted Answer

The decision in Zhu v Merrill Lynch HSBC supports the proposition that customers are entitled to rely on the common sense meaning of a website's online prompts when completing a transaction. In this case, the court found that the online prompt used by Merrill Lynch HSBC was ambiguous and confusing, and that the customer had a reasonable expectation that their transaction would not go through. Therefore, the customer was entitled to rescind the transaction.

Question 12

You have recently gone into business as a consultant, specializing in the area of online consumer protection.As part of your services, you offer a seminar to business owners on how they can prevent identity theft.Which of the following practices will you suggest to your clients?

Accepted Answer

Adopting authentication procedures that collect only necessary personal identifiers is a good practice to prevent identity theft. This means that businesses should only collect the minimum amount of personal information that is required for conducting transactions, and avoid collecting sensitive information such as social security numbers or bank account numbers.

Answer: E 
 Allowing only one completely unsupervised person in your organization to have access to all personal information, and excluding all others in your organization from such access can be considered a best practice. This limits the exposure of personal information to unauthorized individuals and makes it easier to track any suspicious activity. However, it is important to ensure that the person with access to the information is reliable and trustworthy.

Question 13

Cordelia intended to purchase 10 copies of a book from an online book dealer.She intended to keep one copy for herself, and give the others to her students as end-of-term gifts.By mistake, however, she actually placed an order for "100," rather than "10," books.She realized her error only when she received an enormous shipment of books.She now wants to avoid the consequences of her mistake.Which of the following statements is TRUE under most Canadian statutes that deal with electronic commerce?

Accepted Answer

Under most Canadian statutes that deal with electronic commerce, Cordelia would be entitled to relief only if she notified the book dealer of her error as soon as possible after realizing she had made a mistake. This is because it is considered a duty of care to notify the other party of the mistake in a timely manner to enable them to mitigate any damages or losses. Cordelia may also have to return any goods if requested by the book dealer.

Question 14

Miki wants to set up some kind of automated marketing to advertise her latest jewellery line.She is also wary of annoying her customers or breaking the law with her marketing.Which of the following strategies would be best for Miki?

Accepted Answer

Sending an automated telephone message to every name in the phone book (A) or sending an email to everyone on her business contact list (B) is not targeted and could potentially violate laws regarding unsolicited messages. Requesting customers to forward her email (C) may lead to spam complaints and is not a reliable marketing strategy. Hiring a telemarketer to call every name in the phone book (E) could lead to liability issues. Option D is the best choice as it involves checking the DNCL and only contacting those who have not opted out, ensuring compliance with regulations and targeting interested individuals.

Question 15

A company has recently begun to provide online services to consumers.In order to protect itself from the risk of liability, and in order to improve the quality of its services, the company has asked you, as an online consumer protection expert, to provide advice on best practices.Which of the following is TRUE?

Accepted Answer

The answer of A company has recently begun to provide...

Question 16

Which of the following is a good reason for incurring the costs associated with implementing Industry Canada's consumer protection principles into your business?

Accepted Answer

Implementing Industry Canada's consumer protection principles will strengthen consumer confidence in your products, leading to improved customer loyalty, repeat purchases, and positive word-of-mouth recommendations. This can ultimately increase your revenue and profits.

Question 17

You have recently gone into business as a consultant, specializing in the area of online consumer protection.As part of your services, you offer a seminar on how to avoid online consumer complaints.Which of the following practices should you suggest to your clients?

Accepted Answer

Accurately describing all online goods and services is a crucial practice for avoiding online consumer complaints as it sets clear expectations for consumers and reduces the likelihood of misunderstandings and dissatisfaction.

Additionally, other practices that could be suggested are:
- Having clear and concise terms of use that are easy to understand for consumers
- Ensuring that confirmation procedures are in place to provide consumers with order and payment details
- Being transparent about the collection and use of personal information to build trust with consumers.

Question 18

When it comes into force, Canada's Anti-Spam Legislation, S.c.2010,c.23

Accepted Answer

Canada's Anti-Spam Legislation allows individuals to take civil action against spammers, including suing for the actual cost of each occurrence of spam, with potential damages up to $1 million per day.

Question 19

Which of the following practices should be adopted in order to respect the consumer protection principles advocated by Industry Canada?

Accepted Answer

Providing the information necessary for customers to make informed choices is an important consumer protection principle advocated by Industry Canada. This means that businesses should provide clear, truthful and accurate information about their products or services, including any potential risks or limitations. This helps consumers to make informed decisions and avoid being misled or deceived. The other options are not in line with consumer protection principles, as they involve spamming, sharing customer information without consent or selling private information for profit.

Question 20

Which of the following statements is TRUE?

Accepted Answer

The term "phishing" indeed derives from "phreaking," which referred to the hacking of telephone systems. "Phishing" involves tricking individuals into providing sensitive information by masquerading as a trustworthy entity, and the term plays on the idea of "fishing" for information, with the "ph" homage to "phreaking."

Quiz 18: Electronic Commerce