Exam 18: Electronic Commerce

Given the uncertainty involved in determining a company's potential liability in foreign jurisdictions, are there any proactive steps that a company might take to protect itself? Explain your answer and provide examples.

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Question 1

Correct Answer:

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A company can seek to minimize or eliminate any connections it might have with jurisdictions in which it does not wish to face potential liability.These connections might include physical assets, bank accounts, country-code domain names, host servers and intermediaries.Another important proactive measure is the use of geo-targeting technologies.Targeting technologies are used in order to specify the locations where you are willing to do business.By restricting the geographical region in which online business can be done, certain jurisdictions can be avoided.Finally, a company may wish to insert a jurisdictional clause into any online agreements.Such a provision will require any disputes arising from the transaction to be heard by a particular court, using a particular set of laws however, it is not possible to say that by international law, these clauses will always be binding.

Defensive domain name registration is a precaution taken by companies to avoid potentially costly disputes with cybersquatters.

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Question 2

Correct Answer:

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True

According to the Canadian Code of Practice for Consumer Protection in Electronic Commerce, it is illegal for a company to send unsolicited emails to customers.

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Question 3

Correct Answer:

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False

You recently received a notice that your Internet service provider has released your personal account information to a third party in connection with a defamation complaint.When you call to contest the service provider's actions, you are referred to a provision in the terms of use agreement that you apparently did not read (or, at least, you did not remember reading it!).The relevant provision gives permission to release personal information under such circumstances.Can the service provider rely on the provision? Explain your reasoning, using the precedent set out in Rudder v Microsoft.

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Question 4

Which of the following proposals is found within the Canadian Code of Practice for Consumer Protection in Electronic Commerce?

(Multiple Choice)

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Question 5

Hoben Electronic Publishing Co wishes to take proactive steps to insulate itself from potential liability for any libelous content it might inadvertently publish.It has noticed that Southern Ontario is particularly litigious.Accordingly, it has posted a notice on its website stating that residents of Southern Ontario cannot purchase or download content from the site.These are the only steps taken by the company.Although it had the opportunity to purchase software that would allow it to block access to residents of that region, it has chosen not to do so.Nor has Hoben engaged in further screening at the time of purchase and/or download.Nevertheless, the steps taken by the company are sufficient to avoid liability under the effects-based approach to determining jurisdiction.

(True/False)

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Question 6

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

(Multiple Choice)

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Question 7

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?

(Multiple Choice)

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Question 8

The common carriage principle is relevant to Internet service providers (ISPs) because it

(Multiple Choice)

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Question 9

Isabella has commenced an action against a Caribbean-based company that offered a "guaranteed 17 percent return on all 30-day foreign investments of $20 000 or more." Both the initial investment and interest were to be repaid in the investor's national currency, regardless of the mode of investment.Instead, the company provided Isabella with a certificate of ownership in a sugarcane farm, presumably obtained for less than its stated value.Because Isabella is a Canadian citizen, she would like the action tried in a Canadian court and, accordingly, must satisfy the real and substantial connection test.Under this approach, Isabella must demonstrate that the effects of the Caribbean company (ie the harms suffered) were experienced in Canada.

(True/False)

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Question 10

What are the advantages and disadvantages of a decision by your business to implement Industry Canada's Principles of Consumer Protection in Electronic Commerce? Explain your answer.

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Question 11

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?

(Multiple Choice)

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Question 12

While attending a recent conference on electronic publishing, Samina overheard a colleague remark that online service providers can always and absolutely avoid all liability from third parties by inserting an exclusion from liability provision into their terms of use, provided that the exclusion clause is sufficiently brought to the attention of its users.The remark that she overheard is correct.

(True/False)

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Question 13

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

(Multiple Choice)

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Question 14

All websites must contain terms of use.

(True/False)

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Question 15

Privacy laws limit the extent to which businesses can collect, use, or disclose personal information about their customers.Which of the following strategies should be adopted by a company to minimize the risks and costs associated with privacy compliance?

(Multiple Choice)

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Question 16

You have just started a new business selling jewel-encrusted dog collars over the Internet.Your website allows customers to place orders online, which they pay for by credit card.The collars are then shipped straight to their homes.The website is almost ready to be launched, the last thing you want to add to the site is your privacy policy.Briefly explain three provisions that you might wish to include in your privacy policy, and why a privacy policy is important for your business.

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Question 17

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?

(Multiple Choice)

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Question 18

Kerasic Online is an ISP.It has been sued by SOCAN for copyright violation.SOCAN argues that Kerasic commits a wrong every time that it allows a customer to electronically distribute music files to other individuals.Kerasic believes, however, that as a result of a recent Supreme Court of Canada decision, an ISP can never be held liable for participating in the distribution of electronic music files.Kerasic's conclusion is correct.

(True/False)

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Question 19

"In the world of real estate, a person may buy a piece of land with a view to re-selling it at a profit.A similar sort of activity can happen on the Internet." Explain the meaning of that statement, as it appeared in Chapter 18.

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Question 20

Showing 1 - 20 of 75

Given the uncertainty involved in determining a company's potential liability in foreign jurisdictions, are there any proactive steps that a company might take to protect itself? Explain your answer and provide examples.

Defensive domain name registration is a precaution taken by companies to avoid potentially costly disputes with cybersquatters.

According to the Canadian Code of Practice for Consumer Protection in Electronic Commerce, it is illegal for a company to send unsolicited emails to customers.

Which of the following proposals is found within the Canadian Code of Practice for Consumer Protection in Electronic Commerce?

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

The common carriage principle is relevant to Internet service providers (ISPs) because it

What are the advantages and disadvantages of a decision by your business to implement Industry Canada's Principles of Consumer Protection in Electronic Commerce? Explain your answer.

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?

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

All websites must contain terms of use.

Privacy laws limit the extent to which businesses can collect, use, or disclose personal information about their customers.Which of the following strategies should be adopted by a company to minimize the risks and costs associated with privacy compliance?

"In the world of real estate, a person may buy a piece of land with a view to re-selling it at a profit.A similar sort of activity can happen on the Internet." Explain the meaning of that statement, as it appeared in Chapter 18.

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

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