Deck 18: Electronic Commerce

Question 1

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

Answer 1

True

Question 2

Which of the following statements is TRUE?

A)Electronic commerce discourages international business transactions.
B)Technology allows contracts to be performed less efficiently.
C)Technology increases marketing costs.
D)Electronic commerce makes many transactions easier and more affordable.
E)Electronic commerce is governed almost entirely by a set of international treaties.

Answer 2

Electronic commerce makes many transactions easier and more affordable.

Question 3

Rolf Dog Food has created a new website to sell its dog food over the Internet.Which of the following strategies will best ensure that Rolf's terms of use are binding on visitors to the website?

A)Rolf can post the terms anywhere on his website.As long as interested customers can locate and read them, the specific location is never important.
B)Rolf's terms of use are automatically binding on anyone using the site, so the company does not need to worry about where or how the terms are posted.
C)Rolf could deny visitors access to the website unless they have confirmed that they have read and agreed to the terms of use by clicking an "I accept" box.
D)Rolf should mail a hardcopy of the terms of use to each potential visitor to the website, to ensure that they receive adequate notice of the conditions.
E)It is impossible to ensure that terms of use will be binding on visitors to the website.

Answer 3

Rolf could deny visitors access to the website unless they have confirmed that they have read and agreed to the terms of use by clicking an "I accept" box.

Question 4

The principle of net neutrality states that Internet service providers should refrain from providing online services.

Question 5

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

Question 6

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.

Question 7

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.

Question 8

According to the Office of the Privacy Commissioner of Canada, which of the following is an example of Serena's personal information?
A.her favourite colour
B.her body weight
C.the name of her pet
D.the name of her best friend
E.her Facebook page

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.

Question 10

Double-spending is a problem that arises in connection with electronic commerce.If a single online transaction has contact with two or more locations-as when the seller may be in New York and the buyer may be in Winnipeg-the government in each location may impose a tax.The same transaction therefore may be taxed twice.That is the double-spending problem.

Question 11

A term of an online contract will not be binding on a customer if it consisted of "fine print" that could not be viewed in its entirety from the main page of the site.That rule was stated in

A)Kanitz v Rogers Cable Inc.
B)Doctor's Association Inc v QIP Holders.
C)Rudder v Microsoft.
D)Crookes v Newton.
E)Society of Composers, Authors and Music Publishers of Canada v Canadian Association of Internet Provider.

Question 12

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.

Question 13

A click-farm is normally created in an attempt to inflate Internet rankings and increase advertising revenue.

Question 14

The Government of Canada enacted PIPEDA in part to ensure an overlap between federal and provincial privacy laws.

Question 15

As a general rule, domain names are registered on a first come-first served basis.As a result, the first person to register a domain name typically has the right to sell it.

Question 16

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.

Question 17

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.

Question 18

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.

Question 19

After becoming tired of the Muzak piped into your office, you decide to subscribe to an online, listener-supported radio station dedicated to jazz and blues music.You had thought that there was no upfront fee, but that listeners may make a donation using their electronic wallets.Clicking through the site, you are asked to provide certain information on a contractual form.One day, after several visits to the website, you notice a hyperlink labelled "Terms of Service" while viewing the previous hour's play list.You click the link and a document opens, indicating that, by streaming music from the website, you have agreed to pay a flat fee on a monthly basis with a minimum subscription of one year.On your previous visits, you never noticed the hyperlink, which is barely visible in fine print, at the bottom corner of the homepage right next to a flashy and distracting animation.Which of the following BEST characterizes this situation?

A)You have entered into a contract and owe a year of monthly fees.
B)You can rely on Rudder v Microsoft to get out of this contract.
C)You have not entered into a contract.
D)You may have entered into a contract, but its terms likely do not include a year of monthly fees.
E)You have entered into a contract that is governed by the Sale of Goods Act.

Question 20

All websites must contain terms of use.

Question 21

Which of the following tests is irrelevant to a determination of the appropriate jurisdiction for litigation arising from online interaction?
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 22

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?

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 SOCAN.

Question 23

Which of the following would best explain why certain terms in an online agreement might be found to be of NO LEGAL EFFECT?
A.The terms are boilerplate provisions.
B.The terms are displayed in red font, rather than black.
C.The terms cannot be stored electronically.
D.The terms are not accessible to the customer until after the customer has clicked an "I Agree" box to accept the agreement.
E.The terms can only be found by searching through complicated hyper-links.

Question 24

Which of the following proposals is found within the Canadian Code of Practice for Consumer Protection in Electronic Commerce?
A.Online vendors should make a complaints procedure available to customers, endeavour to deal with complaints within one week, and resolve or address complaints within 45 days.
B.To reduce the risk of confusion and disagreement, online communications should be available in one language only.
C.Unsolicited emails can be sent to customers without their consent as long as the subject line of the email clearly specifies what the message is about.
D.Online vendors should never communicate with people they know to be children.
E.Online vendors do not have to worry about any liability whatsoever as jurisdiction of the courts cannot be taken over them.

Question 25

Which of the following is an example of traffic shaping?

A)An Internet service provider (ISP) completely blocks access to particular websites.
B)An ISP slows a user's Internet service whenever they try to send files through a peer-to-peer system.
C)An ISP gives subscriber information to the police upon request.
D)An online service provider offers prizes to the first 1000 visitors to its website.
E)An online service provider redirects Internet traffic from its old website to its new and improved website.

Question 26

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?
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 27

"Phishing" occurs when

A)you download free software from the Internet.
B)you believe that your bank has requested your personal information, which you supply in an email, only to later learn that the initial email was a scam.
C)without your knowledge, a program captures an image of your screen that can be used by an identity thief to collect your personal information.
D)you accidently install a virus on your computer when you are downloading music from a website.
E)a company sells your personal information without your permission.

Question 28

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?

A)Ginger's site carries a picture of a customer's dog with the customer's permission.
B)In order to demonstrate the superiority of Ginger's pet supplies, one of Ginger's customers posts a video that makes untrue and unflattering comments about Ginger's competitors.
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 29

After reading an article about domain name-related entrepreneurship, you decide to register several domain names for resale.Subsequently, you receive a complaint alleging that you have registered one of those names in bad faith.The complainant has filed for arbitration.The name in question is breadandbutter.com.The complainant, a baker, conducts business under the name.Based on these facts, which of the following statements is most likely to be TRUE?

A)You have an intellectual property right in the name.
B)You are a cybersquatter.
C)The complainant can claim the "good faith" justification.
D)Your domain name dispute cannot be litigated in court.
E)If you quickly set up a bakery under the same name you should be able to avoid any liability.

Question 30

Which of the following kinds of online behaviour might not attract legal liability?
A.posting a defamatory remark
B.distributing materials subject to copyright
C.disclosing personal information
D.trademark infringement
E.providing a content-neutral conduit, without wither knowledge of infringing content or a practical opportunity to monitor the vast amount of content passing over the network

Question 31

The Government of Canada proposed to add new provisions to the Criminal Code that focus on prohibiting identity theft.Which of the following statements about the proposed amendment is FALSE?

A)Currently there are absolutely no provisions in the Criminal Code that can be used to prohibit identity theft.
B)The proposed provisions focus on the preparatory stages of identity theft, making it illegal to possess the identity documents of another person.
C)It is currently difficult to characterize personal information as property unless it has commercial value.
D)Under the proposed amendment, the offender could be ordered to pay the victim for the reasonable amount spent restoring their identity.
E)The new provisions include prison sentences sometimes up to a maximum of five years.

Question 32

The International Widget Co has approached you seeking advice.It is currently embroiled in a dispute with one of its regular trading partners.As a result of spilling Orange Crush on his keyboard, the trading partner's purchasing officer accidentally ordered 700 widgets, instead of the usual monthly 70.Figuring that the extraordinary order would not be processed, he did not bother informing International Widget about the mistake.Relying on the accuracy of the order, International Widget bought supplies necessary to make 700 widgets.The trading partner refuses to carry out the transaction.Assuming the relevant jurisdiction follows the approach adopted by Canadian statutes that deal with electronic commerce, which of the following is most likely TRUE?

A)International Widget's trading partner will not be bound by the order.
B)International Widget's trading partner will be bound by the order.
C)International Widget can recover from its trading partner the cost of no more than 350 widgets.
D)International Widget can recover from its trading partner the cost of no more than 500 widgets.
E)International Widget's trading partner is only obliged to pay for 70 widgets and keep the remaining 630 widgets for free.

Question 33

Based on the decision in SOCAN v Canadian Association of Internet Providers, which of the following statements is TRUE?
A."Caching" is an unacceptable use of the Internet.
B.An Internet service provider (ISP) is content-neutral when it does not have knowledge of infringing content and cannot practically monitor the content passing over its network.
C.If an ISP knows that customers could potentially infringe copyright through their use of the Internet, the ISP will always be liable for any infringement that occurs.
D.ISPs cannot be held responsible for paying royalties.
E.Content-neutral ISPs are shielded from all legal liability.

Question 34

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

A)The fact that a party clicked "I Agree" without actually reading the terms of the agreement will render the contract unenforceable.
B)The fact that a party receives an automated response confirming a transaction is cancelled is not binding on the party sending the notice if that party has made a mistake.
C)Computer-generated transactions are not generally binding.
D)A party must verify significant transactions made on the Internet by telephone or other communication with the counterparty for those transactions to be binding.
E)All computer transactions are binding based on the messages sent between the parties.

Question 35

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?
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.M!ke has no risk of liability

Question 36

Andres has created an online service that allows users to instantaneously distribute documents to hundreds of other people.Which of the following strategies can help him reduce his risk of being held liable for the content distributed by the users of his service?

A)He should review all documents and edit anything that might be considered offensive.
B)He should include a provision in his terms of use warning users that he will monitor every message they distribute through the service.
C)He should include a provision in his terms of use allowing him to claim indemnification from a user if he is held liable for something they distributed through the service.
D)He should avoid telling users what they can or cannot distribute through the service for fear of infringing their free speech.
E)He should not worry about this risk and do nothing as it is not a likely legal hazard of his business.

Question 37

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

A)allows ISPs to privilege the content that they think customers most want to see.
B)allows ISPs to police the Internet by monitoring the content transmitted through their Internet infrastructure.
C)prevents ISPs from denying competitors access to their Internet infrastructure.
D)means the exact same thing as network neutrality.
E)allows ISPs to maintain monopolies.

Question 38

Javed has created a website for his company.The website is strictly informational.It does not allow customers to buy products online or post their own content.It does, however, contain materials taken from other websites.Which of the following statements is most likely to beTRUE?

A)Javed does not need to worry about liability issues.
B)Javed's website could put him at risk for claims of copyright infringement, depending on the information posted on the site.
C)Unless Javed specifies that his website forms a part of his contract with customers, the content on the website can never be considered in a claim for innocent misrepresentation.
D)Javed should not include terms of use on his website because such terms are only appropriate for websites that allow customers to make online purchases or post content.
E)Javed's website could put him at the risk of breach of contract if he does not allow his customers to post comments about his business on his website.

Question 39

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?

A)A company should appoint one person to be responsible for privacy issues so that it can completely avoid the cost of training other employees about privacy compliance.
B)When a company only collects necessary personal information, it can use that information however it wants.
C)A company should encrypt personal information whenever possible, even if there is a small financial cost to do so.
D)If the company is located in the Yukon, it is not subject to privacy legislation so should develop its privacy policy in a way that best suits its needs.
E)A company should include the maximum expected cost of privacy law claims into its calculation price of goods or services and not bother to comply with the privacy laws.

Question 40

RAS Auto Parts, a Canadian company, recently received some decidedly unfavourable publicity stemming from an incident that took place at a Caribbean conference attended by its board of directors.The story was published in the Trinidad Daily Online.RAS would like to bring a defamation suit against the Daily Online in Canada.In order to obtain jurisdiction in Canada, under the effects-based approach, which of the following elements must RAS prove?

A)how the harm was suffered
B)why the harm was suffered
C)where the harm was suffered
D)what harm was done
E)that RAS is incorporated in Canada

Question 41

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?

A)Because "Stanley Cup" accurately describes David's name and business, he has an absolute right to use that domain name.
B)The use of that domain name will be regulated by an organization known as CIRa.
C)Although there are several statutes that regulate the actual practice of online commerce, there are no special rules regulating the use of domain names, and as a result, any disputes arising from David's use of that domain name will be resolved on the basis of traditional intellectual property laws.
D)If anyone objects to David's good faith use of that domain name, the case will certainly be resolved through ADR.
E)David can use any name he wants as long as some else has not already taken the Internet domain name.

Question 42

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

A)Because online communication rarely fails without at least one of the parties knowing of the failure, jurisdiction is not a significant issue for electronic commerce.
B)Jurisdiction is usually determined on the basis of the but-for test.
C)The effects-based test of jurisdiction focuses on how damage was caused.
D)The passive versus active test asks which of the parties first filed official documents in a particular jurisdiction.
E)The relevant connecting factors in the real and substantial connection test include the locations of the content provider, the host server, the intermediaries, and the end user.

Question 43

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

A)a simple hyperlink does not count as republication for the purposes of the tort of defamation.
B)jurisdiction over a dispute that arose from an online contract is generally decided on the basis of the target test.
C)although many people use it, Bitcoin is not "legal tender" and cannot be treated as the equivalent of cash.
D)a customer is bound by the terms of an online contract only if those terms were reasonably brought to the customer's attention before the contract was created.
E)Internet service providers are not liable to pay royalties when they act as content-neutral conduits.

Question 44

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?
A.by denying business the right to ever disclose personal information
B.by encouraging businesses to track customer purchases so they can identify any purchases that seem out of character and might therefore be fraudulent
C.by requiring businesses to destroy personal information that is no longer needed
D.by requiring businesses to run criminal record checks on all employees
E.by requiring businesses to store personal information only in paper form and not electronically

Question 45

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

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 46

Which of the following is not correct?
A.DNCL stands for Do Not Call List
B.CRTC stands for Canadian Radio-television and Telecommunications Commission
C.CASL stands for Canadian Anti-Spam Law
D.ODR stands for Online Dispute Resolution
E.CIRA stands for Canadian Internet Registry Authority

Question 47

Which of the following statements is correct?
A.FAQ stands for Frequently Answered Questions.
B.PIPEDA stands for Private Information Protection and Electronic Documents Act.
C.IMTP stands for Internet Traffic Management Procedures.
D.ITRC stands for Identity Theft Research Center.
E.PIPEDA stands for Personal Information Protection and Electronic Documents Act.

Question 48

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?

A)Sam received no benefit from the booking with the Lodge.
B)Sam contacted his credit card company to cancel payment to the Lodge.
C)Sam notified Jasper Lodge of the error as soon as possible.
D)The Lodge's website did not provide any way for Sam to cancel the booking.
E)The Lodge's website increased the risk of error because it did not require Sam to click more than once in order to create the contract.

Question 49

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?

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 50

The phrase "net neutrality" refers to the fact that

A)all of the taxes that the federal government collects from electronic commerce are used for the further development of the Internet.
B)an Internet service provider can charge a fee that covers its expenses, plus a regulated profit, but no more.
C)as long as an online service provider does not favour one political position over another, it will not be held liable for statements that appear on its social media.
D)the Internet should act as a set of pipes through which data flows from sender to receiver without any intervention by the pipe owners.
E)a cryptocurrency must ensure that the amount received by an online vendor is equal to the amount paid by an online buyer.

Question 51

Which of the following propositions is best supported by the decision in Zhu v Merrill Lynch HSBC?
A.Customers are entitled to rely on the common sense meaning of a website's online prompts when completing a transaction.
B.Customers are NOT entitled to rely on the common sense meaning of a website's online prompts when completing a transaction.
C.Customers cannot rely on keystroke errors to cancel a transaction when that transaction involves the purchase or sale of stocks.
D.Companies owe customers the same duty to make online transactions readily understandable, regardless of whether the customer might risk losing large amounts of money as a result of a faulty transaction.
E.It is the customer's responsibility to confirm the prompts received during online transactions.

Question 52

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?
A.transacting as a mere conduit
B.adopting authentication procedures that collect only necessary personal identifiers
C.utilizing an open-access network
D.implementing electronic contracting and instantaneous communication
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

Question 53

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?

A)Cordelia must pay for all 100 copies of the book unless she can prove that the book dealer immediately realized that a mistake had been made.
B)Cordelia will be entitled to relief only if she proves that she had committed a reasonable mistake and that she had not been careless when she placed her order.
C)Cordelia is automatically entitled to relief if the book dealer's website did not immediately ask her to confirm the number of books that she wanted to purchase.
D)Cordelia is entitled to relief only if, among other things, she notified the book dealer of her error as soon as possible after realizing she had made a mistake.
E)Cordelia cannot possibly avoid the consequences of her own mistake.

Question 54

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?

A)send an automated telephone message to every name in the phone book
B)send an email to everyone on her business contact list, which happens to be a very long list
C)send an email to her regular customers, and request that they forward her email to 10 friends, who can forward it to 10 more friends, and so on
D)compare the phone numbers that she received from willing customers against the national Do Not Call List (DNCL), and send a telephone message to those names that do not appear on DNCL
E)hire a telemarketer to call every name in the phone book so that she can avoid liability all together

Question 55

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?

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 strictly comply with all of the standards in the Canadian Code for Consumer Protection in Electronic Commerce.

Question 56

Which of the following is a good reason for incurring the costs associated with implementing Industry Canada's consumer protection principles into your business?
A.Your business is legally required to do so.
B.You will avoid competition from multi-level marketers.
C.You will avoid the need for adopting a privacy-compliance policy.
D.You will strengthen consumer confidence in your products.
E.You will insulate your business from all legal liability.

Question 57

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?

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 58

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

A)creates an automatic jail term of 14 years for anyone caught sending spam.
B)requires that companies eliminate the possibility of keystroke errors in online transactions.
C)allows individuals to put their names on a Do Not Call List to avoid telemarketers.
D)gives individuals the ability to sue spammers for the actual cost of each occurrence of spam, up to $1 million per day.
E)creates a criminal prohibition against identity theft

Question 59

Which of the following practices should be adopted in order to respect the consumer protection principles advocated by Industry Canada?
A.sending unsolicited email only to parties who you think will be interested
B.sharing customer information only with trusted business partners
C.providing the information necessary for customers to make informed choices
D.implementing electronic payment systems
E.selling private information about your customers to anyone who will pay for that information

Question 60

Which of the following statements is TRUE?

A)The term "blockchain" reflects the fact that Bitcoin's payment system that operates like a chain-link fence, in that outsiders can view transactions but cannot reach with them.
B)The phrase "double-spending" first arose because early online businesses used programs that were unreliable and often billed a customer twice for the same goods.
C)The term "spyware" became popular after an early group of hackers discovered that they were all interested in international espionage and intrigue.
D)The term "spam" reflects the fact that many of the people who first developed online commerce realized that they could work from any location, and chose to live in Hawaii, where Spam, a tinned ham byproduct, is curiously popular.
E)The term "phishing" is taken from the term "phreaking" which was used to designate a clique of early hackers said to be "phone-freaks".

Question 61

Explain the principle of net neutrality using a business example.Why do some Internet companies, academics, and public interest advocates support this principle? Does any Canadian legislation address network neutrality?

Question 62

Explain the "common carriage principle" as it applies to Internet service providers.Explain how that principle is related to the concept of "net neutrality."

Question 63

It seemed almost too good to be true.Because he was about to start university, Delroy was desperate to buy a laptop computer.And because money was tight, he was also hoping to spend as little as possible.Those two factors came together when Delroy entered into the website that Personal Solutions Computers (PSC) uses for online contracts.The laptop that interested Delroy usually sold for around $2000, but the website gave a "time limited special offer" price of $150. Delroy immediately submitted a purchase order and clicked on a button that said "I Agree to Be Bound By the Terms of This Agreement."
A few minutes later, he received an "Order Confirmation" email that referred to the laptop and the price of $150.Later the same day, however, Delroy received a second email from PSc.That message said that the quoted price of $150 was the result of an employee's error.PSC actually intended to sell the laptop for $1500.The message also said that the terms of the contract, which were accessible by way of a hyperlink on the order page, included an exclusion clause for such errors.Delroy nevertheless insists that he is entitled to purchase the laptop for $150.He honestly had not noticed the hyperlink at the time of purchase and he certainly had not been aware of the exclusion clause.Will a court enforce the exclusion clause in PSC's favour? Explain how the courts decide which "hidden" terms are included within online contracts. Which considerations are relevant to that exercise?

Question 64

Identity theft is a major concern for businesses and customers alike.Briefly explain why identity theft can be harmful to a business and provide three examples of how a business might reduce the risk of identity theft.

Question 65

Identify and briefly explain the provisions of the Canadian Code of Practice for Consumer Protection in Electronic Commerce that deal with advertising communications and potential customers.

Question 66

"Privacy laws are consistent across Canada.Wherever a dispute occurs, the same rules governing the collection and use of private information apply." Explain the extent to which that statement is correct.

Question 67

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.

Question 68

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.

Question 69

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.

Question 70

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.

Question 71

"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.

Question 72

Monkey Business Inc has implemented an automated software system that allows its employees to enter their weekly hours.Recently, it was determined that one if its employees made a keystroke error and was underpaid as a result.As a general rule, how can Monkey Business and its employees protect themselves against keystroke errors?

Question 73

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.

Question 74

The Narwhal is one of Canada's leading forums for discussion of political, social, and cultural issues.Although it traditionally consisted of a monthly magazine, it now also operates a website that invites discussion.Explain how user-generated content may pose a threat to The Narwhal's brand identity and suggest possible risk management strategies.

Question 75

You are a manager at a medium-sized start-up company that is well positioned in the online intermediary market.One of your colleagues has asked you to offer some advice about the liability of online intermediaries.Provide a brief introduction to this issue.Illustrate your answer with business law examples.How can a business shield itself from intermediary liability?