Deck 16: Regulatory,ethical,and Compliance Issues in EC

Question 1

Acts or activities that are unethical are also illegal.

Answer 1

False

Question 2

Questions or disputes about the legality of spam can be resolved easily by referring to relevant laws.

Answer 2

False

Question 3

Political spam,regardless of its content,is legal in the United States because it is a form of speech protected by the Constitution.

Answer 3

False

Question 4

Significant changes in the nature of business or crimes lead to new laws because laws must remain responsive to new threats or abuses.

Question 5

A company can be sued for libel if its EC site contains a defamatory or untrue statement that causes damage to a person or another company.

Question 6

Electronic signatures improve EC by helping to distinguish between legitimate and fraud transactions and build trust and predictability needed by parties doing business online.

Question 7

EC Web site content needs to be reviewed by attorneys with cyber law expertise to ensure that there nothing is unethical or illegal and that all required statements and disclaimers are properly included.

Question 8

Because of intellectual property law,the recording industry can file lawsuits for copyright infringement against YouTube or MySpace if it profits from the recording industry's property without authorization and compensation.

Question 9

Legal precedents are decisions by judges that may be used as standards in similar legal cases that follow.

Question 10

Violation of copyrights on the Internet is a major problem for creators and distributors of intellectual property such as movies,music,and books.

Question 11

According to Gartner Group,40 percent of the world's data centers are constrained by heat,space,and power requirements.

Question 12

A corporate code of ethics should specify whether the company allows employees to set up their own Web pages on the company intranet and the rules for private e-mail usage during working hours.

Question 13

Creations of the mind,such as inventions,literary and artistic works,and symbols,names,images,and designs,used in commerce are known as private property.

Question 14

Ethical principles that apply to the collection and use of personal information,such as notifying customers of information practices before collecting it,do not apply to information collected in e-commerce.

Question 15

Online sellers can better protect themselves against fraud by requiring customers whose billing address is different from the shipping address to call their bank and have the alternate address added to their bank account.

Question 16

Due process is a legal claim that others not interfere with a protected interest,such as privacy,intellectual property,or free speech.

Question 17

Several public organizations and private companies attempt to protect consumers and build users' trust and confidence in the Internet through a seal of quality,such as Trustmark and BBBOnline.

Question 18

Data centers must ensure security and availability of their services,and when they are planned from scratch,they can be energy efficient with low power consumption.

Question 19

Sustainability regulations such as RoHS in the European Union (EU)will increasingly impact how supply chains function regardless of location.

Question 20

Unlike hate sites that can cause problems for corporations or lead to lawsuits,fan sites are beneficial and welcomed by the entertainment industry.

Question 21

A decision by a judge that may be used as a standard in similar cases that follow is referred to as:

A)intellectual property.
B)legal precedent.
C)common law.
D)tort.

Question 22

Which intellectual property law is correctly matched with its protection?

A)Patent law protects inventions.
B)Trade secret law protects creations of the mind.
C)Copyright law protects confidential business information.
D)Trademark law protects discoveries.

Question 23

Virtual universities are helping to reduce the digital divide.

Question 24

Due process is:

A)a legal claim that others not interfere with a protected interest.
B)a set of enforceable rules and regulations.
C)a guarantee of basic fairness and fair procedures in legal action.
D)a legal obligation not to interfere with a protected interest.

Question 25

All of the following regarding protected interests are true except:

A)Privacy and free speech are examples of protected interests.
B)Any content can be posted on a Web site or blog because it is protected under free speech.
C)Protected interests are not absolute.
D)Intellectual property is a protected interest.

Question 26

A music company can file a ________ against YouTube and MySpace for any interference with the ability to profit from its IP or for profiting from the recording industry's property without authorization and compensation.

A)criminal charge
B)negligence charge
C)nuisance charge
D)lawsuit or civil charge

Question 27

Electronic Product Environmental Assessment Tool (EPEAT)is a searchable database of computer hardware that meets a strict set of environmental criteria.

Question 28

Various EC tools can help increase our safety at home and in public,such as e-911 systems;global collaborative commerce technologies,e-procurement,and e-government efforts at information sharing.

Question 29

Teleconferencing or virtual work offers many green benefits,including reducing rush hour traffic,improving air quality,improving highway safety,and improving health care.

Question 30

________ enable(s)an organization that has suffered a loss due to spammers to bring a lawsuit against spammers responsible for the loss.

A)Criminal laws
B)Civil laws
C)The CFAA
D)Common laws

Question 31

Sending spam that disguises a sales pitch to look like a personal e-mail so that it will bypass e-mail spam filters violates the:

A)Controlling the Assault of NonSolicited Pornography and Marketing (CAN-SPAM)Act.
B)Computer Fraud and Abuse Act (CFAA).
C)First Amendment.
D)Children's Internet Protection Act (CIPA).

Question 32

Each of the following statements about digital rights management (DRM)is true except:

A)DRM are technology-based protection measures.
B)DRM technologies were developed with strict regard for privacy protection.
C)Typically,the content is a copyrighted digital work to which the vendor holds right.
D)DRM is an umbrella term for any arrangement that allows a vendor of content in electronic form to control the material and restrict its usage.

Question 33

Intellectual property law is the area of law that is associated with each of the following except:

A)business contracts
B)visual and performing arts
C)patent law,copyright law,trademark law,and trade secret law
D)electronic databases,advertising,and video games.

Question 34

A duty is:

A)a legal claim that others not interfere with a protected interest.
B)a set of enforceable rules and regulations.
C)a guarantee of basic fairness and fair procedures in legal action.
D)a legal obligation not to interfere with a protected interest.

Question 35

Which is a major property right relevant to EC and Web sites?

A)control of the use of the property
B)the right to any benefit from the property
C)the right to exclude others from the property
D)All are major property rights.

Question 36

Which of the following is true about copyrights?

A)Copyright protection on artistic property such as a movie or music lasts forever,even after the death of the author or creator.
B)In the United States,after work is created and in a tangible form such as through writing or recording,the author can apply for a federal copyright.
C)The Recording Industry Association of America (RIAA)uses lawsuits against universities,but not students,to stamp out rampant music piracy on university campuses.
D)The entertainment industry,led primarily by the Motion Picture Association of America (MPAA)and RIAA,is trying technical solutions via the legal system to protect its interests.

Question 37

Having control over the collection,storage,and dissemination of personal information is included in the category of:

A)property.
B)rights.
C)duties.
D)privacy.

Question 38

Property rights relevant to e-commerce include all of the following except:

A)the right to bring criminal charges against a violator
B)control of the use of the property
C)the right to benefit,transfer,or sell the property
D)the right to exclude others from the property

Question 39

Some believe that exposure to cellular mobile communication radiation may cause health problems;however,it may take years before the truth of this claim is known.

Question 40

An online business has the ________ to prevent spammers or other people from interfering with or harming the benefits (profits)from its EC site and can file lawsuits against them.

A)legal right
B)law statute
C)liability
D)legal obligation

Question 41

Which of the following statements about the rights to privacy and free speech is not correct?

A)Those rights have an increasingly important role in an information society and to EC.
B)As with all rights,the right of free speech is not unlimited.
C)The Internet has destroyed the right to privacy.
D)Defamation laws put restrictions on what may be freely said or published.

Question 42

Section 5 of the FTC Act does each of the following except:

A)prohibits unfair or deceptive EC practices
B)gives the FTC authority to take action against companies whose lax security practices could expose customers' financial information to theft or loss
C)protects privacy
D)requires monitoring of employees' e-mail

Question 43

The ________ gives law enforcement agencies broader range in their efforts to protect the public.

A)American Civil Liberties Union (ACLU)
B)Electronic Freedom Foundation (EFF)
C)U)S.Department of Justice (DOJ)
D)USA PATRIOT Act

Question 44

Examples of electronic signatures to help distinguish between legitimate and fraud transactions include all of the following except:

A)a name typed at the end of an e-mail message by the sender
B)a digitized image of a handwritten signature attached to an electronic document
C)a secret code or PIN to identify the sender to the recipient
D)a Web site development agreement

Question 45

Creations of the mind,such as inventions,literary and artistic works,and symbols,names,images,and designs,used in commerce are types of ________.

Question 46

EC and Web site safeguards to minimize exposure to risk of legal actions include all of the following except:

A)The Web site clearly posts shipment policies and guarantees.
B)The Web site clearly articulates procedures for customers to follow when making returns.
C)The company checked backgrounds of customers before shipping any products.
D)The company checked backgrounds before entering agreements with third-party vendors.

Question 47

Fair use means:

A)that copyrighted material can be used for noncommercial purposes without paying royalties or getting permission.
B)that a copyright holder has exclusive rights to the invention for a fixed number of years.
C)that the author or creator of a book,movie,or musical composition can use his or her creations for an unlimited number of years.
D)that copyrighted material can be digitally protected against misuse.

Question 48

EC sellers need to protect against fraud and each of the following except:

A)public keys
B)customers who deny that they placed an order
C)customers who give false credit card or bad check information in payment for products and services provided
D)use of their name by imposter sellers

Question 49

An Internet acceptable use policy (AUP)is an important safeguard because:

A)it is required by the FTC.
B)it includes a corporate code of ethics.
C)without a formal AUP,it is much more difficult to enforce acceptable behaviors and eliminate unacceptable behaviors and punish violators.
D)employees may be using company e-mail to advertise their own businesses.

Question 50

A domain name is:

A)tangible property protected by law.
B)intangible property protected by law.
C)tangible property that is not protected by law.
D)intangible property that is not protected by law.

Question 51

All of the following are ways to use the Internet to find information about an individual except:

A)stealing the individual's computer
B)using cookies,spyware or keystroke loggers
C)wiretapping communication lines
D)reading an individual's e-mail,IM,blogs,or text messages

Question 52

Corporate Web policy guidelines include all of the following except:

A)Issue word-of-mouth acceptable use policies (AUP).
B)Make it clear to employees that they cannot use copyrighted or trademarked material without permission.
C)Post disclaimers concerning content.
D)Have attorneys with cyber law expertise review Web content.

Question 53

________ are pages created deliberately to trick the search engine into offering inappropriate or poor quality search results.

Question 54

All of the following statements apply to hate Web sites except:

A)Web sites that contain legitimate complaints that are not defamatory,sponsored by competitors,or infringe upon trademark rights by confusing consumers are usually protected by the First Amendment.
B)Many hate sites are directed against large corporations such as Wal-Mart,Microsoft,and Nike.
C)Cyberbashing is the registration of a domain name that criticizes an organization or person.
D)The intent of most hate Web sites is to commit fraud.

Question 55

The least effective method to protect against pop-up ads and their risk is:

A)pop-up blocking software on users' computers.
B)minimizing the pop-up window.
C)ISPs using tools that stop pop-ups from appearing.
D)Mozilla and Firefox Web browsers preventing pop-ups.

Question 56

A ________ is a legal claim that others not interfere with an individual's or organization's protected interest.

Question 57

Which of the following is true about the scope of business ethics?

A)The scope of business ethics has expanded to encompass the nature and quality of the relationships with shareholders,customers,business partners,suppliers,the community,environment,and future generations.
B)The scope of business ethics has been limited to a company's actions with regard to how it treats employees and obeys laws.
C)The scope of business ethics has not changed because laws have not changed.
D)The scope of business ethics has not changed even though laws have expanded.

Question 58

Companies can improve their responsibility as custodians of customers' personal data by implementing:

A)opt-in and opt-out information practices.
B)AUP.
C)e-mail monitoring.
D)firewalls.

Question 59

________ is a guarantee of basic fairness and fair procedures.

Question 60

A ________ is a legal obligation imposed on individuals and organizations that prevents them from interfering with another's protected interests or rights.

Question 61

Unwanted software programs that violate a user's privacy and steal confidential data by entering a computer as a virus or a deceptive pop-up window are called ________.

Question 62

________ refers to arrangements that allow a vendor of digital content to control the material and restrict its usage.

Question 63

Similar to a patent is a ________,which is a symbol businesses use to identify their goods and services;government registration of the trademark confers exclusive legal right to its use.

Question 64

A ________ is an exclusive right of the author or creator of a book,movie,musical composition,or other artistic property to print,copy,sell,license,distribute,transform to another medium,translate,record,perform,or otherwise use.

Question 65

________ are laws that protect creations of the human mind including such diverse subjects as the visual and performing arts,electronic databases,advertising,and video games.

Question 66

________ are laws that enable an individual or organization that has suffered harm or a loss to bring a lawsuit against whomever is responsible for the harm or loss,such as spammers.

Question 67

Companies have the duty to not intrude on a person's ________ because individuals have the right to be left alone and free of unreasonable personal intrusions.

Question 68

A ________ is a civil wrong,such as negligence,that can be grounds for a lawsuit.

Question 69

________ is a nonprofit group whose mission is to build users' trust and confidence in the Internet by promoting the policies of disclosure and informed consent.

Question 70

________ defines how a company integrates honesty,trust,respect,fairness,and legal standards into its policies and practices.

Question 71

Lawsuits are one type of ________,which is an adversarial proceeding in which one party sues another party to get compensation for a wrong committed by the defendant.

Question 72

________ is a businesses practice that gives consumers the opportunity to refuse to share information about themselves.

Question 73

The ________ is a private nonprofit organization supported largely by membership that provides reports on businesses that consumers can review before making a purchase.

Question 74

________ allow Web sites to collect detailed information about a user's preferences,interests,and surfing patterns.

Question 75

In law,________ refers to the use of copyrighted material for noncommercial purposes without paying for its use.

Question 76

As with all rights,the right of free speech is not ________ because free speech does not mean any speech.

Question 77

________ define what is good for the individual and society and the nature of duties that people owe themselves and one another.

Question 78

________ is the registration of a domain name that criticizes an organization or person,such as paypalsucks.com.

Question 79

In broad terms,________ are interests,such as life,liberty,and property,that are protected by national constitutions.

Question 80

The entertainment industry has the right to its intellectual property (IP)and can file ________ against online businesses,such as YouTube or 56.com,for any interference with its operation.