Question 1

Companies should refrain from telling consumers about privacy breaches because it will cause consumers to become distrustful.

Accepted Answer

A) True 
 B)False  False

Question 2

Matt Cone has registered the domain name icecreamcone.ca.While Matt plans on using the domain name to promote his homemade ice cream,he is also considering selling the name to the highest bidder and using the money to help offset his startup costs.Matt has contacted several relevant businesses with his offer.Recently,Matt has received a complaint from a kosher ice cream distributor that holds a registered Canadian trademark for "Ice-Cream Cohen." It has characterized Matt's actions as cybersquatting and is demanding that he assign his registration in the domain name to them at cost.Because cybersquatting is an illegal practice,Matt must assign his rights to Cohen.

Accepted Answer

A) True 
 B)False  False

Question 3

A government official has recently appointed you to a committee.That committee has been asked to consider possible changes to UECA.Which of the following statements is TRUE?

Accepted Answer

A) The government in question must be the federal government. 
B) UECA was created by the United Nations. 
C) UECA is the name of a statute that applies across Canada. 
D) UECA requires commercial organizations of a certain size to collect customer information. 
E) UECA formed the basis for most Canadian statutes that deal with online transactions. 
A) The government in question must be the federal government. 
B) UECA was created by the United Nations. 
C) UECA is the name of a statute that applies across Canada. 
D) UECA requires commercial organizations of a certain size to collect customer information. 
E) UECA formed the basis for most Canadian statutes that deal with online transactions. E

Question 4

M!ke Internet Inc offers an Internet connection and an email account for $9 per month.The company does not retail goods,nor does it provide a forum for subscriber auctions.Which of the following is most likely FALSE?

Accepted Answer

A) M!ke is an Internet service provider. 
B) M!ke is an online service provider. 
C) M!ke is an online intermediary. 
D) M!ke is unlikely to be seen as a participant in its customers' communications. 
E) Mike has no risk of liability 
A) M!ke is an Internet service provider. 
B) M!ke is an online service provider. 
C) M!ke is an online intermediary. 
D) M!ke is unlikely to be seen as a participant in its customers' communications. 
E) Mike has no risk of liability

Question 5

Briefly explain how Canada's Uniform Electronic Commerce Act (UECA)emerged.What role does it play in online contract formation?

Accepted Answer

The emergence of the UECA stems from ear

Question 6

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

Accepted Answer

A) consumers cannot be held liable for terms that they did not actually read. 
B) parts of a document that cannot be seen on the screen when the document is first opened are the electronic equivalent of small print. 
C) an electronic contract does not become effective until the consumer is provided with a paper copy of the agreement. 
D) when Canadian consumers become involved in disputes regarding online contracts,they are always entitled to have their claims heard in Canadian courts. 
E) 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. 
A) consumers cannot be held liable for terms that they did not actually read. 
B) parts of a document that cannot be seen on the screen when the document is first opened are the electronic equivalent of small print. 
C) an electronic contract does not become effective until the consumer is provided with a paper copy of the agreement. 
D) when Canadian consumers become involved in disputes regarding online contracts,they are always entitled to have their claims heard in Canadian courts. 
E) 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.

Question 7

You are the owner of Bread and Butter,a catering service that accepts customer orders through its website.You have recently discovered that your company's domain name,breadandbutter.ca,was registered by a company called Domain Acquisitions Co during a lapse in your registration (due to an overlooked outstanding payment).This company has since offered to resell the domain name to your company for a considerable sum.Needless to say you are extremely perturbed.What are your possible courses of action? Decide which remedy you will seek and outline your strategy.

Accepted Answer

As a prudent risk manager you should not

Question 8

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

A) The company is legally obligated to comply with the minimum standards established in the Canadian Code for Consumer Protection in Electronic Commerce. 
B) The Canadian Code for Consumer Protection in Electronic Commerce is a federal statute. 
C) The company should offer services in only one language in order to avoid the risk of confusion. 
D) With the exception of the territories,every Canadian jurisdiction has adopted its own version of PIPEDA. 
E) The company should voluntarily and strictly comply with all of the standards in the Canadian Code for Consumer Protection in Electronic Commerce,and even seek to exceed those standards with the objectives of protecting privacy and ensuring that consumers are treated fairly,honestly,and transparently. 
A) The company is legally obligated to comply with the minimum standards established in the Canadian Code for Consumer Protection in Electronic Commerce. 
B) The Canadian Code for Consumer Protection in Electronic Commerce is a federal statute. 
C) The company should offer services in only one language in order to avoid the risk of confusion. 
D) With the exception of the territories,every Canadian jurisdiction has adopted its own version of PIPEDA. 
E) The company should voluntarily and strictly comply with all of the standards in the Canadian Code for Consumer Protection in Electronic Commerce,and even seek to exceed those standards with the objectives of protecting privacy and ensuring that consumers are treated fairly,honestly,and transparently.

Question 9

Ginger's Pet Shop has decided to retail its products over the Internet.To generate interest in its new website,Ginger wants to allow customers to post content about pets or pet supplies on the site.Which of the following examples might pose a liability risk to Ginger?

Accepted Answer

A) Ginger's site carries a picture of a customer's dog with the customer's permission. 
B) A customer posts a video demonstrating the superiority of Ginger's pet supplies over the supplies sold by a competitor by allowing a pet goat to eat the competitors products. 
C) The display of customers' pets on Ginger's website contributes to Ginger's image as a customer-oriented pet shop. 
D) Ginger requires customers to agree to terms of use that restrict the types of pictures they can post,leading to complaints that her terms limit free speech. 
E) Ginger requires customers in their terms of use to not use their products for an illegal purpose. 
A) Ginger's site carries a picture of a customer's dog with the customer's permission. 
B) A customer posts a video demonstrating the superiority of Ginger's pet supplies over the supplies sold by a competitor by allowing a pet goat to eat the competitors products. 
C) The display of customers' pets on Ginger's website contributes to Ginger's image as a customer-oriented pet shop. 
D) Ginger requires customers to agree to terms of use that restrict the types of pictures they can post,leading to complaints that her terms limit free speech. 
E) Ginger requires customers in their terms of use to not use their products for an illegal purpose.

Question 10

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.

Accepted Answer

As an online business,I will have to col

Question 11

"The Model Law on Electronic Commerce is not really a law." Is this statement true? Explain your answer.

Accepted Answer

The statement is True.Laws are enacted b

Question 12

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

A) Regardless of the precise wording of the paragraph,Rogers cannot change the terms of the agreement unless it ensures that Kamil actually became aware of the change. 
B) As long as Kamil agreed to the terms of the contract as a whole,he will certainly be bound by every term in that contract,even if he did not actually read the entire document. 
C) Regardless of the precise wording of the paragraph,Rogers can vary the terms of its agreement with Kamil only if it acts in a way that would satisfy the reasonable person. 
D) Rogers can rely on the paragraph as long as it took reasonable steps to draw Kamil's attention to it before the contract was created. 
E) Because of the risk that companies may take advantage of consumers,Rogers must provide Kamil with a hard copy of a letter that explains the changes to the agreement. 
A) Regardless of the precise wording of the paragraph,Rogers cannot change the terms of the agreement unless it ensures that Kamil actually became aware of the change. 
B) As long as Kamil agreed to the terms of the contract as a whole,he will certainly be bound by every term in that contract,even if he did not actually read the entire document. 
C) Regardless of the precise wording of the paragraph,Rogers can vary the terms of its agreement with Kamil only if it acts in a way that would satisfy the reasonable person. 
D) Rogers can rely on the paragraph as long as it took reasonable steps to draw Kamil's attention to it before the contract was created. 
E) Because of the risk that companies may take advantage of consumers,Rogers must provide Kamil with a hard copy of a letter that explains the changes to the agreement.

Question 13

Which of the following kinds of online behaviour might not attract legal liability?

Accepted Answer

A) posting a defamatory remark 
B) distributing materials subject to copyright 
C) disclosing personal information 
D) trademark infringement 
E) providing a content-neutral conduit website for the posting of messages by others,with a terms of use contract that clearly states that no responsibility for editing or other review of the posted material is taken,and with disclaimers of liability and releases as terms of use to be electronically agreed to for access to the site 
A) posting a defamatory remark 
B) distributing materials subject to copyright 
C) disclosing personal information 
D) trademark infringement 
E) providing a content-neutral conduit website for the posting of messages by others,with a terms of use contract that clearly states that no responsibility for editing or other review of the posted material is taken,and with disclaimers of liability and releases as terms of use to be electronically agreed to for access to the site

Question 14

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

A) Be sure your terms of use include extensive use of specialized legal terminology. 
B) Weave promotional materials into your terms and conditions of sale. 
C) Be sure to accurately describe all online goods and services. 
D) Dispense with confirmation procedures. 
E) Promise not to collect any personal information. 
A) Be sure your terms of use include extensive use of specialized legal terminology. 
B) Weave promotional materials into your terms and conditions of sale. 
C) Be sure to accurately describe all online goods and services. 
D) Dispense with confirmation procedures. 
E) Promise not to collect any personal information.

Question 15

Syntax Systems has launched a new electronic newsletter.Similar to the use of a listserv,the newsletter is composed of subscriber submissions (rather than content generated by the news service itself).Each day's accumulated subscriber submissions are automatically packaged and automatically sent by mass email without editorial review.(In fact,the whole point of the newsletter is that no one knows what anyone else will say until it is disseminated. )Revenue for the newsletter is generated through automated advertising.Which of the following is most likely to be TRUE?

Accepted Answer

A) Syntax is likely to be liable in the event that an illegal message was posted. 
B) Syntax will never be liable in the event that an illegal message was posted. 
C) Syntax is exempted from liability by virtue of being an Internet service provider. 
D) Syntax can only avoid liability if it attempts to censor illegal messages. 
E) A conduit model of website may attract liability,even where the activity of the provider is content neutral,and the law has not been finally settled by the decision of the SCC in SOCAM. 
A) Syntax is likely to be liable in the event that an illegal message was posted. 
B) Syntax will never be liable in the event that an illegal message was posted. 
C) Syntax is exempted from liability by virtue of being an Internet service provider. 
D) Syntax can only avoid liability if it attempts to censor illegal messages. 
E) A conduit model of website may attract liability,even where the activity of the provider is content neutral,and the law has not been finally settled by the decision of the SCC in SOCAM.

Question 16

Citron Cleaning Supplies has begun marketing their new computer screen cleaner under the name "Compuclean." Citron is a US-based company and holds a US federally registered trademark for "Compuclean." Recently,it has discovered that a Canadian company is in the business of vending a similar product through the website compuclean.ca.The Canadian web site encourages foreign-based orders and maintains an international toll-free phone number for customer inquiries.Instead of bringing a complaint under the domain name arbitration system,Compuclean wishes to bring an action against the Canadian company in a US court.In order to increase the chances that the US court will assert jurisdiction,Citron should argue in favour of the application of a passive versus active test.

Accepted Answer

A) True 
 B)False

Question 17

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 should she adopt?

Accepted Answer

A) sending an automated telephone message to every name in the phone book 
B) sending an email to everyone on her business contact list which happens to be a very long list 
C) sending an email to her regular customers,and requesting that they forward her email to 10 friends,who can forward it to 10 more friends,and so on 
D) comparing her list of customer phone numbers,which she gathered with permission to use for business-related phone calls,against the national Do Not Call List (DNCL)and sending a telephone message to those names that do not appear on DNCL 
E) hiring a telemarketer to call every name in the phone book so that she can avoid liability all together 
A) sending an automated telephone message to every name in the phone book 
B) sending an email to everyone on her business contact list which happens to be a very long list 
C) sending an email to her regular customers,and requesting that they forward her email to 10 friends,who can forward it to 10 more friends,and so on 
D) comparing her list of customer phone numbers,which she gathered with permission to use for business-related phone calls,against the national Do Not Call List (DNCL)and sending a telephone message to those names that do not appear on DNCL 
E) hiring a telemarketer to call every name in the phone book so that she can avoid liability all together

Question 18

Susanne has asked for your advice on how she can reduce the risk of having her identity stolen.Which following strategies would you recommend that she adopt?

Accepted Answer

A) She should never download software from the Internet. 
B) She should always carry her social insurance card so she can prove her identity whenever necessary. 
C) She should never pay for items with a credit card instead she should only use cash. 
D) She should never transmit personal information over voicemail. 
E) She should always chose obvious passwords for her online accounts so that she does not risk forgetting them. 
A) She should never download software from the Internet. 
B) She should always carry her social insurance card so she can prove her identity whenever necessary. 
C) She should never pay for items with a credit card instead she should only use cash. 
D) She should never transmit personal information over voicemail. 
E) She should always chose obvious passwords for her online accounts so that she does not risk forgetting them.

Question 19

Which of the following tests is irrelevant to a determination of the appropriate jurisdiction for litigation arising from online interaction?

Accepted Answer

A) whether there is a real and substantial connection to the place where jurisdiction is being sought 
B) whether the website has an actual impact in the place where jurisdiction is being sought 
C) whether the defendant is culpable 
D) whether the website merely posts information,or requires customers to interact 
E) whether the person clicked "I Agree" or not 
A) whether there is a real and substantial connection to the place where jurisdiction is being sought 
B) whether the website has an actual impact in the place where jurisdiction is being sought 
C) whether the defendant is culpable 
D) whether the website merely posts information,or requires customers to interact 
E) whether the person clicked "I Agree" or not

Question 20

All websites must contain terms of use.

Accepted Answer

A) True 
 B)False

Companies should refrain from telling consumers about privacy breaches because it will cause consumers to become distrustful.

A government official has recently appointed you to a committee.That committee has been asked to consider possible changes to UECA.Which of the following statements is TRUE?

M!ke Internet Inc offers an Internet connection and an email account for $9 per month.The company does not retail goods,nor does it provide a forum for subscriber auctions.Which of the following is most likely FALSE?

Briefly explain how Canada's Uniform Electronic Commerce Act (UECA)emerged.What role does it play in online contract formation?

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

Ginger's Pet Shop has decided to retail its products over the Internet.To generate interest in its new website,Ginger wants to allow customers to post content about pets or pet supplies on the site.Which of the following examples might pose a liability risk to Ginger?

"The Model Law on Electronic Commerce is not really a law." Is this statement true? Explain your answer.

Which of the following kinds of online behaviour might not attract legal liability?

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?

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 should she adopt?

Susanne has asked for your advice on how she can reduce the risk of having her identity stolen.Which following strategies would you recommend that she adopt?

Which of the following tests is irrelevant to a determination of the appropriate jurisdiction for litigation arising from online interaction?

All websites must contain terms of use.

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

Special Contracts: Negotiable Instruments

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

Filters

Exam 19: Electronic Commerce

Companies should refrain from telling consumers about privacy breaches because it will cause consumers to become distrustful.

A government official has recently appointed you to a committee.That committee has been asked to consider possible changes to UECA.Which of the following statements is TRUE?

M!ke Internet Inc offers an Internet connection and an email account for $9 per month.The company does not retail goods,nor does it provide a forum for subscriber auctions.Which of the following is most likely FALSE?

Briefly explain how Canada's Uniform Electronic Commerce Act (UECA)emerged.What role does it play in online contract formation?

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

Ginger's Pet Shop has decided to retail its products over the Internet.To generate interest in its new website,Ginger wants to allow customers to post content about pets or pet supplies on the site.Which of the following examples might pose a liability risk to Ginger?

"The Model Law on Electronic Commerce is not really a law." Is this statement true? Explain your answer.

Which of the following kinds of online behaviour might not attract legal liability?

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?

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 should she adopt?

Susanne has asked for your advice on how she can reduce the risk of having her identity stolen.Which following strategies would you recommend that she adopt?

Which of the following tests is irrelevant to a determination of the appropriate jurisdiction for litigation arising from online interaction?

All websites must contain terms of use.

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

Special Contracts: Negotiable Instruments

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

Filters