Deck 17: Internet Law and E-Commerce

Question 1

Electronic mail is one of most widely used applications for communication over the Internet.

Answer 1

True

Question 2

In a licensing agreement,the licensor is the owner of intellectual property or informational rights who transfers rights in the property or information to the licensee.

Answer 2

True

Question 3

Intellectual property licensing agreements are simple,standard agreements that generally convey similar rights to licensees.

Answer 3

False

Question 4

The Uniform Computer Information Transactions Act was passed by Congress in 1999.

Question 5

An intellectual property licensing arrangement is a method used to transfer certain rights of use,but not ownership,of intellectual property.

Question 6

Trademark laws adequately protect holders of trademarks from persons acquiring domain names in bad faith using the trademark,or confusingly similar names.

Question 7

A printout of a contract negotiated using e-mail is usually not sufficient to meet the requirements of the Statute of Frauds because its source cannot be verified.

Question 8

The "Whois" database contains everyone's name in the United States.

Question 9

Under the Uniform Computer Information Transactions Act,a license is a contract that transfers limited rights in intellectual property and informational rights.

Question 10

A computer information transaction is an agreement to create,transfer,or license computer information or information rights.

Question 11

The price charged for the sale or transfer of Web domain names is regulated in order to prevent excessive prices from being charged.

Question 12

One of the places domain names can be registered at is Network Solutions,Inc.'s Web site.

Question 13

One of the uniform laws developed in response to electronic commerce is the Uniform Computer Information Transactions Act.

Question 14

An exclusive license means that a licensor will not grant to any other person rights in the same information for an infinite amount of time.

Question 15

Under the Electronic Communications Privacy Act,an employer cannot access any stored e-mail of an employee without that employee's consent.

Question 16

In order to register for a domain name,the U.S.Patent and Trademark Office must issue an authorization that the name is available and is not confusingly similar to existing names.

Question 17

The Electronic Communications Privacy Act protects electronic communications while they are in transit as well as when they are stored.

Question 18

The Anticybersquatting Consumer Protection Act protects any individual's name from being registered by another person.

Question 19

The Anticybersquatting Consumer Protection Act protects against bad faith registrations of domain names only if the domain name is trademarked.

Question 20

The government can get access to an individual's stored e-mail pursuant to a legitimate criminal investigation without a search warrant.

Question 21

Which of the following is true about the sale of Internet domain names?

A) The fee for the transfer of an Internet domain name cannot be greater than the fee paid to register the name,prorated over the remaining period that the registration fee covers.
B) Amounts charged to transfer ownership of a domain name must be approved by the agency that initially sold the name.
C) Names have not been sold for more than nominal amounts.
D) Some names have properly been sold for millions of dollars.
E) The periodic registration fee will be affected by the amount for which a domain name is sold.

Question 22

Internet domain names are assigned by:

A) the Patent and Trademark Office
B) a subagency of the Commerce Department
C) Network Solutions,Inc. only
D) Network Solutions,Inc.,and other authorized companies

Question 23

Of the following,which celebrity(ies)was/were successful in recovering under the Anticybersquatting Consumer Protection Act from someone who improperly obtained an Internet domain name?

A) Julia Roberts
B) Sting
C) both A and B
D) neither A nor B

Question 24

Under the Uniform Computer Information Transactions Act,if a consumer makes a unilateral electronic error in an electronic contract,which of the following is the consumer NOT required to do in order to avoid being bound by the error?

A) Upon learning of the error,promptly notify the other party.
B) Explain the cause or source of the error to the other party.
C) Does not use or benefit from the information or make it available to a third party.
D) Deliver all copies to the other party,or destroys them pursuant to the other party's instructions.
E) Pay the shipping,reshipping,and processing costs of the other party.

Question 25

Unfortunately,breach of a licensing agreement by one party leaves the aggrieved party without any type of remedy.

Question 26

Which of the following is true under the Uniform Computer Information Transactions Act about a licensor's use of self-help techniques in response to a breach of a contract by a licensee?

A) The licensor can use self-help techniques whether or not they are mentioned in the contract terms.
B) It is acceptable to cause a breach of the peace,assuming that the licensee breached.
C) The licensor must give the licensee at least 15 days notice before taking any disabling action.
D) Self-help cannot include any techniques that make software inoperative.

Question 27

Which of the following apply to the Electronic Signature in Global and National Commerce Act?

A) It is a statute enacted by Congress and therefore has national reach.
B) The act provides that electronically signed contracts cannot be denied effect because they are in electronic form.
C) The act is designed to place the world of electronic commerce on the same par as the world of paper contracts in the United States.
D) It recognizes electronic contracts as meeting the writing requirement of the Statute of Frauds.
E) All of these are correct.

Question 28

Under the Electronic Signature in Global and National Commerce Act,electronic signatures can be verified by the following methods except:

A) by a secret password known by the signatory
B) by a digitally encoded smart card belonging to the signatory
C) by the use of a device that electronically recognizes fingerprints or parts of the eye
D) by the use of a notary public to check digital identifying information

Question 29

Under the Uniform Computer Information Transaction Act,a cause of action must be brought within 1 year after the breach was or should have been discovered,but not more than 5 years after the breach actually occurred.

Question 30

Under the Uniform Computer Information Transactions Act,the licensee can revoke acceptance of the information if which of the following is true?

A) There is a material breach and discovery of the nonconformity was difficult at the time of delivery but was later discovered.
B) There is a breach of any kind and discovery of the nonconformity was difficult at the time of delivery but was later discovered.
C) There is a material breach,and after discovering the nonconformity at the time of delivery,the licensor agreed to cure the defect,but has not done so.
D) There is a breach of any kind,and after discovering the nonconformity at the time of delivery,the licensor agreed to cure the defect,but has not done so.
E) A or C will allow the licensee to revoke acceptance.

Question 31

Under the Anticybersquatting Consumer Protection Act,which of the following is true?

A) Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity's name.
B) Penalties are imposed for obtaining any domain name that infringes on a valid trademark.
C) Domain names are granted only after ensuring that they do not infringe on a valid existing trademark.
D) A plaintiff must show that the defendant acted in bad faith in order to recover.
E) Both C and D are true.

Question 32

Under the Uniform Computer Information Transactions Act,consumers are held responsible for electronic errors,such as ordering more copies than intended,if there was a confirmation procedure and the consumer erroneously confirmed the incorrect quantity.

Question 33

In order to obtain a domain name,one must:

A) obtain clearance that the name is not confusingly similar to another name,and pay the appropriate fee
B) apply for the name and,if within the waiting period,there are no objections to the applicant taking the name,pay the appropriate fee
C) verify that the name is not already taken,directly notify parties who might object to obtain their waiver of objection,and pay the appropriate fee
D) verify that the name is not already taken and pay the appropriate fee or,if already taken,negotiate to purchase the name from its current owner
E) apply for the name,state the purpose for which the name will be used,and if the use is approved,pay the appropriate fee

Question 34

Which types of names are protected under the Anticybersquatting Consumer Protection Act?

A) any name of a natural person
B) names of famous persons only
C) names of famous companies,but only if the name is trademarked
D) names of famous persons or of famous companies,but only if the name is trademarked
E) names of famous persons or of famous companies,even if the name is not trademarked

Question 35

Licensing of informational rights can best be described as:

A) a sale of the underlying intellectual property rights
B) a lease of tangible personal property to the licensee
C) the granting of limited rights to use that cannot be simultaneously granted to others
D) the granting of any rights to use information,which can differ greatly in scope and duration
E) the right to temporarily use the domain name of another

Question 36

Which of the following is true about the Uniform Computer Information Transactions Act?

A) It became law in all 50 states in 1999.
B) The Act is the exclusive source of law for the transactions that it applies to.
C) It establishes a uniform set of rules that governs the creation,performance,and enforcement of computer information transactions.
D) State trade secret law could not apply to a contract covered by the Act.

Question 37

Which of the following is correct about the Electronic Communications Privacy Act?

A) Law enforcement authorities can access an employee's e-mail stored on the employer's computer system in connection with a criminal investigation only with a search warrant.
B) An employer has the right to view an employee's e-mail regardless of where it is stored if it can be accessed through the employer's e-mail system.
C) The Act contains civil limitations,but no criminal provisions.
D) The act applies to stored e-mail,but not e-mail in the process of transmission.

Question 38

Which of the following extensions for domain names represents an unrestricted global name that may be used by businesses,individuals,and organizations?

A) )Edu
B) )Org
C) )Com
D) )Info
E) )Net

Question 39

The Uniform Computer Information Transactions Act governs which types of transactions?

A) It governs any contract entered into by using electronic messages.
B) It governs contracts to create,transfer or license computer information or informational rights.
C) It governs any contract for the sale of goods that is entered into by using electronic messages.
D) It governs any contract where payment is made electronically,including electronic credit card transactions.

Question 40

Which of the following best describes how e-mail contracts are viewed under the law?

A) E-mail contracts are not usually valid because of the ease of deleting e-mail messages.
B) E-mail contracts for goods can be valid,but not e-mail contracts for services.
C) E-mail contracts are valid only for contracts less than $500.
D) E-mail contracts are valid so long as both parties sign a written copy printed out from the e-mail.
E) E-mail contracts are generally treated similarly to contracts negotiated by other means.

Question 41

Ed Smith purchases the domain name "bradpitt.com." He believes that he may be able to sell the web-site to the actor at a significant profit.The famous actor wants the domain name.What will most likely happen?

A) Pitt may have the domain if he pays what Smith wants for it.
B) Pitt may have the domain because it is his name.
C) Pitt may have the domain because Smith registered it in bad faith.
D) Smith may keep the domain because the name "Brad Pitt" is generic.

Question 42

Mark recently started a small business and acquired a domain name for the business.At the same time,he remembered hearing about people buying up names related to companies and to famous individuals and then selling the names for astronomical sums.Mark wants to buy the domain name,"Sharonstone.com." He figures he will start a fan club for the famous movie star,and then see if he can sell the domain name to her for a profit.Which is true in these circumstances regarding Mark's options?

A) He will be unable to buy the name because it is the name of a person.
B) He will have to give Sharon Stone the first opportunity to buy the name.
C) He could buy the domain name,but could be liable under the Anticybersquatting Consumer Protection Act if it is proven that he acted in bad faith in acquiring the name.
D) He could buy the domain name,but could be liable under the Anticybersquatting Consumer Protection Act if it can be proven that he acted in bad faith in acquiring the name but only if Sharon Stone can prove that she suffered damages from his Web site.
E) He could buy the domain name,but could be liable under the Anticybersquatting Consumer Protection Act if it is proven that he acted in bad faith in acquiring the name but only if Sharon Stone can prove that he earned profits from the fan club Web site.

Question 43

Ed Smith purchases the domain name "sting.com." The famous musician later brings a lawsuit to obtain the domain name.What will most likely happen?

A) Sting will get the domain,but must pay Smith for it.
B) Sting will get the domain because it is his name.
C) Smith may keep the name because the name is generic.
D) Smith may keep the name because Sting is not an American citizen.

Question 44

Bill and Sally sent several e-mails back and forth in the process of agreeing for Bill to buy Sally's 2001 Acura TL.Sally places an electronic signature on her final correspondence.Bill did not place any type of signature on any of his correspondence.There is actually no single e-mail with all the terms of their agreement,but Bill has printed out copies of all the e-mails between them concerning this transaction.Can Bill enforce this contract?

A) Bill cannot enforce the agreement because Sally's electronic signature does not meet the Statute of Frauds requirement.
B) Bill cannot enforce the agreement because there is no single writing with all the terms of the agreement within the four corners.
C) Bill cannot enforce the agreement because the printed copies of the e-mail correspondence do not meet the writing requirement under the Statute of Frauds.
D) Bill is able to enforce the agreement against Sally.

Question 45

Cybertime Software sold a software package to a client.The terms of the contract provided that the client was purchasing use of the software for 6 months.Cybertime delivered the software copy on compact disks,encoded to become usable on May 1,2002,with payment due from the client by June 1,2002.Unbeknownst to the client,the software was set to disable on June 15,2002 unless Cybertime supplied the client with special software to reactivate the program,which would be done upon full payment.Discuss the legality of this situation.

Question 46

Shortly before President Clinton left office in 2001,he granted a number of controversial pardons.Heather acquired several domain names,including ones such as "pardonmetoobill.com" and "outofjailfreewithbill.com." Heather hopes to use the Web sites to post jokes and anecdotes about the controversy and the ongoing lives of Bill and Hillary.Heather hopes that she can attract advertisers to the site.Barring that,she hopes that maybe Bill Clinton will pay her for the sites.Could Heather face any liability under the Anticybersquatting Consumer Protection Act?

Question 47

Ingrid works for a large wholesale operation in the finance department.In connection with the investigation of suspected embezzlement,her employer looked at her saved e-mail at work.Then,from some forwarded messages,discovered her home e-mail address,and convinced the Internet service provider to allow them access to that as well.Apparently she has become a suspect in the embezzlement investigation.The police have become involved.Discuss this situation.

Question 48

Jacob has long been fascinated with gambling,and has traveled to many of the world's gambling centers,including Monte Carlo.He now plans to turn his hobby into work by opening a gambling education Web site.He hopes to attract advertising from casinos who would want to reach the persons using his Web site to learn about gambling.Because of his love of Monte Carlo and its worldwide fame,he acquired several domain names with Monte Carlo in the name.Assume that a few months before he is ready to go online,he is sued by General Motors who wants the Monte Carlo domain name for use as a Web site to promote its Chevrolet Monte Carlo.Discuss the likely outcome of this lawsuit.

Question 49

In contracts for the sale of goods,do the parties contracting electronically or face-to-face need more protections? What circumstances might affect your opinion?

Question 50

Do you agree with the provisions of the Anticybersquatting Consumer Protection Act? Should alert individuals who purchase valuable domain names be able to sell them to the highest bidder? If so,in all circumstances or only in certain circumstances?

Question 51

Andy has entered into an agreement whereby he can make limited use of software that will remain stored at the licensor's site.Andy accesses the software over the Internet when he needs to use it,but does not store the software on his own computer.Andy uses this software three or 4 days a week,and usually has no problem,but on some occasions the licensor's computer is down and Andy cannot access the software.Based on the above,which of the following is true?

A) Andy can get out of the contract because the inability to access the software is a material breach whereby he is not getting the benefit of the bargain.
B) If the periods the computer is down are considered normal in the industry,there has been no breach.
C) This is considered a breach of the warranty of noninterference.
D) The downtime of the computer is not a breach only if it is scheduled in advance and Andy is given notice of it.

Question 52

John works for a company that provides computers and access to a service provider that provides access to the Internet,as well as an e-mail address for all employees.While at work,John often accesses the e-mail account that he uses at home.John's employer would like to access John's e-mail to see if he is using company time for personal purposes.Which of the following is true?

A) The company must get a search warrant before it can access any of John's stored e-mail.
B) The company can have access to e-mail stored at John's work e-mail address,but not that stored at the e-mail address he usually accesses from home.
C) The company can have access to e-mail stored at either location if the e-mail at the address he accesses from home was sent or received during John's time at work.
D) The company cannot access any of John's stored e-mail unless it obtains the assistance of law enforcement personnel and obtains a search warrant.