Deck 9: E-Contracts and Internet Law

Question 1

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

Answer 1

True

Question 2

In order to be authorized to be a domain name registrar,the registrar must agree to use an arbitration procedure for resolving cybersquatting disputes.

Answer 2

True

Question 3

The Internet was begun in the late 1980s by the U.S.Department of Education.

Answer 3

False

Question 4

Under the terms of a 1999 trade pact between China and the United States,foreign companies cannot own more than 50 percent of an Internet business in China.

Question 5

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

Question 6

The Communications Decency Act of 1996 was found to violate freedom of speech rights.

Question 7

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

Question 8

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

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

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 12

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

Question 13

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 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

All arbitrations related to Internet domain name disputes must be heard by the World Intellectual Property Organization.

Question 20

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

Question 21

Model acts promulgated by the National Conference of Commissioners on Uniform State Laws include the:

A)Electronic Commerce Amendments to the Uniform Commercial Code.
B)Uniform Electronic Transactions Act.
C)Uniform Computer Information Transactions Act.
D)B and C only.
E)A,B,and C.

Question 22

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 23

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 24

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 25

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.

Question 26

Under the Uniform Electronic Transactions Act,electronic signatures must generally be followed up by executing a manual signature in order to attest to the authenticity of the electronic signature.

Question 27

Under the Uniform Computer Information Transactions Act,when an offer is conditioned on agreement by the other party to all of the terms of the offer,varying the terms in a purported acceptance may still create an acceptance.

Question 28

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

Question 29

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 30

Under the Uniform Computer Information Transactions Act,the remedy of specific performance is available if the parties have agreed to the remedy in the contract or if the agreed-upon performance is unique.

Question 31

The two specific provisions of the Telecommunications Act of 1996 that the American Civil Liberties Union objected to in its 1996 challenge to the Act were the:

A)"Indecent transmission" provision and "parental control" provision.
B)"Patently offensive display" provision and "sexual deviant" provision.
C)"Indecent transmission" provision and "patently offensive display" provision.
D)"Patently offensive display" provision and "latent offensive display" provision.
E)"Indecent transmission" provision and "prevention of obscene domain names" provision.

Question 32

Which of the following statements is true about the Internet?

A)It was begun in the 1970s.
B)It was started by the National Aeronautics and Space Administration.
C)It had more than 1,000 computers connected by 1980.
D)Its original purpose was to develop communications for military and national defense purposes.

Question 33

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 34

When contracting with an electronic agent,a contract can be formed even though the content of the purported acceptance would constitute a counteroffer if dealing with a live agent.

Question 35

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

Question 36

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

Question 37

Which of the following is true about investment by U.S.companies in Chinese Internet businesses under the 1999 trade pact between the United States and China?

A)Internet business ownership interest by foreigners is limited to 50 percent.
B)The content of most Web sites will be free from Chinese government regulation.
C)The investments in Internet companies can be made without having to obtain a license.
D)Investments can be made by parties from only one nation other than China.

Question 38

A software access contract is not breached by changes by the licensor in the content of the information licensed if the change does not conflict with express terms of the license contract.

Question 39

Counteroffers are effective against electronic agents.

Question 40

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

Question 41

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 42

In a software or information access contract,which of the following is true?

A)Occasional failures to have access to the information are not breaches if they are normal in the business,trade,or industry.
B)Occasional failures to have access to the information are not breaches if they result from planned downtime.
C)The information to be accessed is updated periodically in many contracts.
D)A and B only.
E)A,B,and C.

Question 43

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 44

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 45

Under the Uniform Computer Information Transactions Act,what is the effect of putting additional terms into an acceptance delivered through an electronic agent?

A)The acceptance is treated as a counteroffer.
B)The additional terms are ignored and a contract is formed based on the original terms.
C)The additional terms become part of the agreement unless objected to within 10 days.
D)The acceptance is treated as if it never occurred,leaving the original offer open.

Question 46

Which of the following is true about the provisions of the Uniform Electronic Transactions Act?

A)A notarization or acknowledgment can be accomplished with an electronic signature of the authorized person so long as all of the information required in the authorization or acknowledgment is provided.
B)The Act's primary goal is to place electronic signatures at a higher level than manual signatures.
C)The Act includes several modifications to the rules of offer and acceptance if the contract is negotiated electronically.
D)Although ordinary signatures can be replaced with electronic signatures,notarized signatures must still be executed manually.
E)Its provisions apply only to transactions involving the transfer of rights to the use of information.

Question 47

Under the procedure instituted by the Internet Corporation for Assigned Names and Numbers,domain name disputes are resolved according to:

A)The rules of the American Arbitration Association.
B)Mandatory mediation,with court action if this is not successful.
C)The Uniform Dispute Resolution Policy.
D)The U.S.Patent and Trademark Office.
E)The first-to-apply rule.

Question 48

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 49

What is the legal significance of a confirmation letter in a contract covered by the Uniform Computer Information Transactions Act?

A)It eliminates the authentication requirement for contracts involving less than $5,000.
B)It eliminates the authentication requirement for all contracts involving $5,000 or more.
C)It eliminates the authentication requirement for contracts involving $5,000 or more if both parties are merchants.
D)It requires that a confirmation letter be sent in addition to the authentication requirements in all contracts involving $5,000 or more.

Question 50

The primary requirement of the Uniform Dispute Resolution Policy as applies to domain name disputes is that:

A)Domain name disputes must be decided in the jurisdiction of the defendant.
B)Domain name disputes will be decided by the use of mediation.
C)Domain name disputes will be decided by the use of arbitration.
D)Domain name disputes will be decided outside of the traditional court system,and these decisions cannot be appealed.
E)Domain name disputes must be decided by an agency of the United Nations.

Question 51

A licensing arrangement that calls for the use of software that remains in the possession of the licensor is called a(n):

A)Access contract.
B)Remote site license.
C)Noncarrier software contract.
D)Periodic use site license.

Question 52

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 53

Which of the following is generally true about contracts covered by the Uniform Electronic Transactions Act?

A)An e-mail printout is not admissible as evidence due to the ease with which a printout can be fabricated.
B)E-mail contracts cannot meet the Statute of Frauds requirements for a writing.
C)Electronic signatures are considered equivalent to handwritten signatures for meeting the Statute of Frauds requirements.
D)Electronic signatures have been held to be sufficient for contracts not required to be in writing under the Statute of Frauds,but not for meeting the Statute of Frauds signature requirement.
E)An e-mail contract meets the Statute of Frauds requirement only if a printout of the e-mail has a hand signature on it.

Question 54

Under the Uniform Computer Information Transactions Act,contracts must be authenticated if the amount to be paid is:

A)$500 or more.
B)$1,000 or more.
C)$2,000 or more.
D)$5,000 or more.
E)$10,000 or more.

Question 55

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

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

Question 56

Under the Uniform Computer Information Transactions Act,which of the following is true regarding contracts that need to be authenticated?

A)All covered contracts must be authenticated.
B)Authentication can occur only with a hand signature.
C)To be enforceable,both parties must have authenticated the contract.
D)Authentication may be shown using an attribution procedure.
E)The same authentication rules apply regardless of whether the parties are merchants or nonmerchants.

Question 57

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 58

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 59

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 60

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 61

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 62

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 63

Under the Uniform Computer Information Transactions Act,tender of performance is:

A)A party's unequivocal indication of intent to perform.
B)A party's agreement to perform.
C)The offer to complete the performance of contractual duties made by a party who is willing and able to perform.
D)The actual completion of a party's obligations under the contract.
E)Any action made by a party that is a beginning of performance of contractual duties.

Question 64

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.

Question 65

Under the Uniform Computer Information Transactions Act,which of the following is true?

A)Where both parties to the transaction are merchants,the court will not examine the reasonableness of any liquidated damages clause.
B)Specific performance can be obtained by the licensee if the information is unique or the parties agreed to it as a remedy in the contract.
C)Liquidated damages clauses are not permitted under the Act.
D)Following a breach by the licensor,the licensee can continue to use the information without incurring an obligation to pay.

Question 66

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 67

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 68

Under the Uniform Computer Information Transactions Act,the licensee can revoke acceptance of the information if:

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 69

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 70

How much regulation of Internet content should be permissible? How does the Internet differ from television and how is it similar with respect to this issue? How should children's access enter into the analysis?

Question 71

Henry has entered into an access contract covered by the Uniform Computer Information Transaction Act.Henry began accessing the software without problem,but after 2 months,began occasionally having difficulty accessing the software.Henry is also upset because the licensor has made periodic changes to the software.Henry now wants out of the contract.Discuss generally Henry's options at this point.

Question 72

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 73

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 74

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 75

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

A)Performance is not excused under the Act due to impracticability.
B)Even when nonperformance is excused due to impracticability,there is a breach of contract.
C)When the existence of impracticability is not subject to reasonable dispute,no notice is necessary to the other party.
D)When a party receives notice of impracticability from the other party,the party receiving the notice can choose to terminate the contract and be discharged from any duties related to the unperformed portion.

Question 76

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 77

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.