Deck 26: Electronic commerce

Question 1

A customer in an electronic commerce contract will be bound by the terms and conditions of a website provided that:

A) The terms and conditions are posted on the website.
B) The customer has clicked on a button acknowledging that they have read the terms and conditions.
C) The customer has read the terms and conditions.
D) The customer is aware of the terms and conditions.

Answer 1

D

Question 2

Which of the following is the best definition of a 'Secure Socket Layer (SSL)?

A) Technology used to protect computer systems from unauthorised interaction.
B) Technology used by browsers to scramble personal information before it is sent over the Internet.
C) Technology involving use of data encryption and digital identification to ensure integrity of online communications.
D) The method used to identify a particular Internet address.

Answer 2

B

Question 3

When will a person be bound by an electronic communication under the electronic transactions legislation?

A) If their electronic signature is attached to the communication.
B) If the communication was intentionally sent by them.
C) If the communication was sent by, or with their authority.
D) If the communication was sent from their computer.

Answer 3

C

Question 4

The Electronic Transactions Act 1999 (Cth) provides a legal framework to support and encourage electronic commerce.

Question 5

An electronic communication will be considered to be an invitation to treat provided that:

A) Is not addressed to one or more specific parties.
B) There is no indication of an intention to be bound.
C) It is generally accessible to people using an information system.
D) All of the above.

Question 6

As a result of the decision in Dow Jones & Co Inc v Gutnick [2002] HCA 56, 'publication' of an article online takes place:

A) At the place of the web server on which the article was uploaded.
B) At the place of the publisher's computer.
C) At the place of the computer on which the article was downloaded.
D) All of the above.

Question 7

In the context of the Electronic Transactions Act 1999 (Cth), which of the following statements is NOT correct?

A) A contract entered into by electronic means is to be treated in the same way as an equivalent contract entered into by more traditional means.
B) Once an electronic communication has been received it is deemed to have been read and understood.
C) A legal requirement to provide information in writing can be satisfied if the person gives the information by means of an electronic communication.
D) A transaction is not invalid because it took place wholly or partly electronically.

Question 8

In the case of: CSR Ltd v Resource Capital Australia Pty Ltd (2003) 128 FCR 408, registration of the plaintiff's name as a domain name was held to be:

A) A misrepresentation at common law.
B) Contrary to the Domain Names Registration legislation.
C) Misleading and deceptive conduct under the Australian Consumer Law.
D) All of the above.

Question 9

Which of the following is NOT one of the rules applied in the allocation of domain names?

A) Domain names are generally allocated to the first person or organisation to apply for the name.
B) The name must be derived from a registered Australian business or company name controlled by the applicant.
C) The applicant must prove past use of the name.
D) Ownership of a trademark does not entitle the trademark owner to incorporate that trademark in a domain name.

Question 10

The decision in Peter Smythe v Vincent Thomas [2007] NSWSC 844 means that a person listing an item on eBay with a disclosed reserve price and a specified time limit to respond is:

A) Making an invitation to treat.
B) Making an offer to sell.
C) Granting an option.
D) Calling for a tender.

Question 11

According to the electronic transactions legislation, the place of dispatch or receipt of an electronic communication will be:

A) The location of the information system outside the originator's control.
B) Determined in accordance with the postal acceptance rule.
C) The place of business (or residence if there is no place of business) of the parties.
D) Governed by the laws of the state or country in which the offer was accepted.

Question 12

Which of the following is the best definition of the term: 'domain name'?

A) The method used to protect computer systems from unauthorised interaction.
B) The method of data encryption and digital identification used to ensure integrity of online communications.
C) The method used to identify a particular Internet address.
D) The method used by browsers to scramble personal information before it is sent over the Internet.

Question 13

Which of the following does NOT need to be stated on an e-commerce website?

A) An Australian Company Number (ACN) or Australian Business Number.
B) A real name, street address and telephone.
C) Security when transferring detail and privacy policy.
D) The hours during which the business can be contacted.

Question 14

Which of the following is the best definition of 'Public Key Technology' ?

A) Technology used to protect computer systems from unauthorised interaction.
B) Technology used by browsers to scramble personal information before it is sent over the Internet.
C) Technology involving use of data encryption and digital identification to ensure integrity of online communications.
D) The method used to identify a particular Internet address.

Question 15

What is an electronic communication?

Question 16

An electronic signature is a method of authenticating an electronic transmission.

Question 17

Which of the following is the best definition of a 'firewall'?

A) Technology used to protect computer systems from unauthorised interaction.
B) Technology used by browsers to scramble personal information before it is sent over the Internet.
C) Technology involving use of data encryption and digital identification to ensure integrity of online communications.
D) The method used to identify a particular Internet address.

Question 18

A person is not bound by an electronic communication unless the communication was sent by, or with their authority.

Question 19

The case of: La Forrest v Ford and Ors [2001] QCA 455 is authority for the principle that:

A) Acceptance of an offer by email is capable of creating a legal relationship.
B) An electronic communication is received at the addressee's place of business.
C) The usual principles of contract law apply to eBay.
D) All of the above.

Question 20

Which of the following is NOT one of the standards regulating the use of electronic signatures?

A) The signature must indicate the person's approval of the information communicated.
B) The signature must be as reliable as was appropriate for the purposes for which the information was communicated.
C) The signature must satisfy the specific technical requirements of the Electronic Transactions Act 1999 (Cth).
D) The signature must identify the person.

Question 21

A Domain Name is the method used to identify a particular Internet address.

Question 22

Which of the following is the best definition of a 'Denial of Service' attack?

A) Hacking into a bank computer and accessing credit card details.
B) Unauthorised impairment of data held on a computer disk.
C) Hacking into a computer system and deliberately impairing the data.
D) Causing a website to be inundated with a large volume of unwanted messages resulting in an overloading and crashing of the computer system.

Question 23

When will a commercial electronic message NOT be illegal under the Spam Act 2003 (Cth)?

A) If the commercial purpose is secondary.
B) Commercial electronic messages are always illegal under the Act.
C) When it is sent by the government or by a political, religious, charitable or educational organisation.
D) When it is sent with the consent of the recipient.

Question 24

What is 'Cybersquatting'?

Question 25

Outline some of the difficulties in applying the law to the World Wide Web (Internet).

Question 26

Which of the following is NOT addressed by the National Privacy Principles under the Privacy Act 1988 (Cth)?

A) Access to, quality, security and correction of personal information.
B) Adoption, use or disclosure of government-related identifiers.
C) Direct marketing.
D) Access to, quality, security and correction of commercial information.

Question 27

Which of the following is NOT a remedy for a person who suffers loss or damage as a result of a breach of the Spam Act 2003 (Cth)?

A) Civil penalties.
B) Compensation.
C) Injunction.
D) Recovery of financial benefits.

Question 28

A procedure which prevents a customer from proceeding with a transaction until they have clicked an acknowledgement of the terms and conditions is called a 'Clickwrap Agreement.'

Question 29

Electronic banking is regulated by:

A) The Code of Banking Practice.
B) The Electronic Funds Transfer Code of Practice.
C) The Building Society Code of Practice.
D) All of the above.

Question 30

Cybercrime refers to the offences committed electronically usually involving unauthorised access to a computer or alteration to computer records.

Question 31

Which of the following types of electronic communication will NOT be regulated by the Spam Act 2003 (Cth)?

A) Mobile text messages.
B) Faxes.
C) Voice messages.
D) Emails.

Question 32

There is no entitlement to statements or paper receipts if the transaction is made electronically.

Question 33

Which of the following is NOT included in the definition of Electronic Funds Transfer?

A) Paying bills by BPAY.
B) Using a card to withdraw money from an ATM or EFTPOS terminal.
C) Transferring money between two bank accounts via the internet.
D) Purchasing goods in a shop using a credit card.

Question 34

Locate the terms and conditions of a website which you frequently visit. Do those terms and conditions cover all of the issues listed on page 672 of the text?

Question 35

Who was held to be liable for a breach of the Spam Act 2003 (Cth) in Australian Communications and Media Authority v Clarity1 Pty Ltd [2006] FCA 410?

A) The company and the sole director.
B) The sole director.
C) The company, the sole director and their internet service provider.
D) The company.

Question 36

Which of the following is NOT an offence under the Cybercrime Act 2001 (Cth)?

A) Unauthorised access to, or modification of, restricted data.
B) Hacking into a bank computer and accessing credit card details.
C) Harassment by electronic means.
D) Causing a website to be inundated with a large volume of unwanted messages resulting in an overloading and crashing of the computer system.

Question 37

All electronic commerce is subject to the provisions of the Competition and Consumer Act 2010 (Cth).

Question 38

The Electronic Funds Transfer Code of Conduct covers all transactions made through an electronic terminal.

Question 39

The Spam Act 2003 (Cth) makes it illegal to send most types of commercial electronic messages without the recipient's consent. Why is 'spam' such a serious problem that legislation was required in order to regulate its use?

Question 40

The Broadcasting Services Act 1992 (Cth) makes it an offence for an internet content host to host prohibited content.