Deck 32: Electronic Commerce

Question 1

Use the fact situation in Q2 to answer the related question that follows. One major concern that A and B will have related to carrying on their business over the Internet is

A)identity theft.
B)public safety.
C)fraud.
D)money laundering.
E)tax evasion.

Answer 1

B

Question 2

Use the fact situation in Q10 to answer the related question that follows. In attempting to determine the proper jurisdiction for its lawsuit,the company will probably

A)rely on the rule that jurisdiction depends on a real and substantial connection with the country,state,or province and choose Ontario.
B)rely on the rule that jurisdiction in Internet matters will be adopted by any court in any jurisdiction and will choose either Ontario or New York State.
C)rely on the rule that jurisdiction depends on where the tort was committed and choose Ontario.
D)rely on the level of Internet activity John's blog receives and choose New York State.
E)rely on the rule that jurisdiction depends on the defendant's residence and choose New York State.

Answer 2

A

Question 3

Use the fact situation in Q8 to answer the related question that follows. Assume that the primary reason for using the name AB's Sales was because A and B knew about the B.C.company and wanted to get some of its business.In this situation,as their lawyer,you would advise A and B that

A)they can use the name AB's Sales throughout Canada.
B)they can use the name AB's Sales everywhere in Canada except British Columbia.
C)they can use the name AB's Sales everywhere in Canada except Ontario.
D)they should reconsider using the name AB's Sales and change it to protect their business.
E)they can use the name AB's Sales only in Ontario.

Answer 3

D

Question 4

Use this fact situation to answer the related questions that follow. John was recently fired from a large company located in Toronto,Ontario,which does business over the Internet.After being fired,John moved to New York City,U.S.A.,and then set up a blog in which he maligned his former employer and its business practices.When the company read the blog,it decided to sue John and the Internet Service provider (ISP)over which John's blog was carried.
In this case,the company will probably succeed against John in an action for

A)the tort of defamation.
B)a breach of the confidentiality provisions of John's employment contract.
C)the tort of negligent misrepresentation.
D)the tort of fraud.
E)misrepresentation in contract.

Question 5

Use this fact situation to answer the related questions that follow. A and B have decided to go into the business of selling goods,but wish to use the Internet to reach potential customers all over Canada who can both buy from them and pay using the Internet.
As prudent businesspersons,A and B will

A)register a domain name.
B)negotiate an Internet access agreement.
C)negotiate a website development agreement.
D)negotiate a website-hosting agreement.
E)all of the above

Question 6

Use this fact situation to answer the questions that follow and relate to it. A and B,based in Ontario,decide that the name of their e-business,which will be displayed on the business website,will be AB's Sales.However,another company in British Columbia has been carrying on business as AB's Sales and has had the name prominently displayed on its web page for the past five years.This B.C.company also deals in the same kind of goods that A and B's business will deal in.
As the lawyer for A and B,you will advise them that

A)they can use the name AB's Sales throughout Canada.
B)they can use the name AB's Sales only in Ontario.
C)they can use the name AB's Sales everywhere in Canada except Ontario.
D)they can use the name AB's Sales everywhere in Canada except British Columbia.
E)they should reconsider using the name AB's Sales and change it to protect their business.

Question 7

Electronic retailing can be divided into the following categories:

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

Question 8

Use the fact situation in Q2 to answer the related question that follows. In deciding on the best way to ensure that their customers agree to all of their terms and conditions of sale,A and B will consider

A)using click-wrap agreement only.
B)advertising a portion of the terms on their website.
C)using a web-wrap agreement only.
D)placing the terms directly on the business website.
E)using either a web-wrap or click-wrap agreement or both.

Question 9

Use the fact situation in Q2 to answer the related question that follows. Since A and B are doing business in Canada,they do not have to worry about whether their contracts need to be in writing or whether an electronic signature constitutes a real signature because

A)of the provisions of provincial electronic legislation only,which make e-contracts legal and e-signatures valid.
B)of the provisions of the PIPEDA only,which make e-contracts legal and e-signatures valid.
C)their validity and legality is guaranteed under the Charter of Rights and Freedoms.
D)of the growing body of case law that has made e-contracts legal and e-signatures valid.
E)of the provisions of both provincial e-commerce legislation and the federal PIPEDA.

Question 10

Use the fact situation in Q10 to answer the related question that follows. Also in this case,

A)the ISP can be sued,but will not be found liable.
B)the ISP can be sued and will be found strictly liable.
C)the ISP cannot be sued because it only provides a service.
D)the ISP cannot be sued because an ISP is like an unincorporated association.
E)none of the above

Question 11

E-cash is a software payment system that allows

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

Question 12

Use the fact situation in Q13 to answer the related question that follows. Now assume that when Henry designed the website,he did so without any links to the Nova Scotia company.In this case,

A)only Henry owns the copyright in the website.
B)neither Henry nor his company own the copyright in the website.
C)only Henry's company owns the copyright in the website.
D)both Henry and his company own the copyright in the website.
E)none of the above

Question 13

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

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

Question 14

Use the fact situation in Q13 to answer the related question that follows. Among other things,a breach or tort committed by Henry's company would be based on

A)the confusion likely to be caused by the link to the Nova Scotia company.
B)the real potential for a loss of sales by the Nova Scotia company.
C)the link on the website to the Nova Scotia company.
D)the fact that the Nova Scotia company has developed a reputation for quality goods.
E)all of the above

Question 15

Use the fact situation in Q13 to answer the related question that follows. Assume that Henry based his design for his company's website on a similar design which he found on the website of an Ontario company.In this case,

A)only Henry would be infringing the Ontario company's copyright.
B)only Henry's company would be infringing the Ontario company's copyright.
C)both Henry and his company would be infringing the trademark of the Ontario company.
D)both Henry and his company would be infringing the industrial Design Act.
E)both Henry and his company would be infringing the copyright of the Ontario company.

Question 16

Use the fact situation in Q2 to answer the related question that follows. The type of business that A and B are setting up is called

A)wholesale sales.
B)electronic retailing.
C)retail sales.
D)e-commerce.
E)digital retailing.

Question 17

Use the fact situation in Q2 to answer the related question that follows. The type of payment that the business will most likely use is

A)credit cards.
B)smart cards.
C)cash.
D)electronic cash.
E)all of the above

Question 18

The Internet is

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

Question 19

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

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

Question 20

Use this fact situation to answer the related questions that follow. Henry is developing a website for a large multinational Canadian manufacturing company located in British Columbia,which carries on its business over the Internet.His website incorporates the name of the company,its logo,which is a five-pointed flaming star,and also a link to the website of another company,located in Halifax,Nova Scotia,which is well known across Canada for its top-quality products and which has registered its name under the Trade-marks Act and its website under the Copyright Act.When the Nova Scotia company hears about Henry's company's website,it takes a good look at it and then,in order to ensure that it will not suffer a drop in sales,decides to sue Henry's company.
In this case,Henry's company has

A)committed a breach of the Industrial Design Act.
B)only committed the tort of passing-off.
C)committed a breach of the Copyright Act.
D)only committed passing-off under the Trade-marks Act.
E)committed both the tort of passing-off and a breach of the passing-off provisions of the Trade-marks Act.

Question 21

By posting material on a website,the author of that material provides his or her consent to its copying by others.

Question 22

The impact of Internet copyright infringement can be devastating.Computer software developers and music producers,for example,have seen their industries destroyed by

A)fair dealing.
B)digital music sales.
C)privacy.
D)piracy.
E)spam.

Question 23

The copying of material from a website is always protected by the "fair dealing" provisions of the Copyright Act.

Question 24

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

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

Question 25

Libel and defamation are two distinct areas of law when it comes to posting untrue comments meant to malign the reputation of another on the Internet.

Question 26

Many of the legal risks associated with e-commerce can be avoided

A)with a well-designed website and detailed contractual terms and conditions.
B)by registering the business site with the Canada Revenue Agency.
C)if users have access to a number of linking sites.
D)by setting up an off-shore corporation not subject to stringent Canadian laws.

Question 27

Authors or owners who post material on a website

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

Question 28

Although domain names are addresses,it is common for a domain name to include an existing trademark.Consequently,the use of an exclusive domain name may

A)amount to cybersquatting.
B)amount to an infringement of another's trademark.
C)raise jurisdictional issues.
D)cause party autonomy.

Question 29

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 30

Like any other legal dispute,a generic domain name dispute may be resolved by either litigation or arbitration.

Question 31

Where a company's website makes a misleading or untrue statement about the goods or services which it supplies,the company may be found liable in misrepresentation.

Question 32

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

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

Question 33

The tort most closely associated with the Internet is nuisance.

Question 34

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

Question 35

The term "spam" means

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

Question 36

Canada's Anti-Spam Legislation (CASL)prohibits the sending of or permitting of the sending of a commercial electronic message to an electronic address

A)after the recipient has added the sender to the "no send list."
B)without the consent of the sender.
C)without the consent of the Internet service provider.
D)without the consent of the recipient.

Question 37

Out-of-province retailers from whom Ontario consumers purchase goods over the Internet must comply with the provisions of Ontario consumer protection statutes.

Question 38

The registration by a person of a domain name identical to that of an existing company and with or without that company's logo is called cybersquatting.

Question 39

Among other things,consumer protection legislation addresses acceptance by clicking an icon,communication of acceptance,electronic signatures,and writing.

Question 40

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

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

Question 41

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

Question 42

Why is it important to determine where an e-contract is made?

Question 43

In relation to Internet crime,what is phishing?

Question 44

A number of years ago,before e-commerce gained momentum,in referring to the privacy of individuals,one of Canada's more noteworthy prime ministers made it clear that the government has no right to intrude into the bedrooms of the nation.Today,however,hackers in the privacy of their bedrooms can steal personal information or severely damage the computer equipment of others.This being the case,can the foregoing sentiment really be maintained,and should it be?

Question 45

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

Question 46

Define and describe the term "domain name."

Question 47

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 48

Why is it that web-wrap agreements must be designed to ensure that all intended terms are brought to the attention of potential customers?

Question 49

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

Question 50

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

Question 51

In order to develop a comprehensive system of law that arises out of e-commerce,what are the three main issues that must be addressed?

Question 52

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

Question 53

Today,what are the factors that help to determine what law governs a particular transaction over the Internet?

Question 54

Explain the meaning of B2B and B2C transactions.

Question 55

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 56

What are the major areas of law that affect e-commerce?