Deck 10: Electronic Commerce and International Trade

Question 1

Which of the following statements is incorrect in relation to the internet and computer fraud?

A)There is no satisfactory means of regulating the internet.
B)Finding and identifying the perpetrators of computer fraud presents a primary challenge.
C)New technologies have provided satisfactory means of regulating the internet.
D)Prosecuting in the appropriate jurisdiction makes it difficult and costly to reduce computer fraud.
E)Internet users need to be very careful with whom they deal and to whom they provide personal information.

Answer 1

C

Question 2

When a foreign judgment is obtained against a Canadian business,the business is often protected by Canadian laws that rarely allow enforcement of such judgments.

Answer 2

False

Question 3

A major problem concerning the internet is to determine what laws apply to the internet and internet transactions.

Answer 3

True

Question 4

Discuss the problems associated with business and the internet.

Question 5

You decide to register a domain name "Delicious_breads_R_us.com," although you neither own a bakery nor have any legitimate use for the domain name.Subsequently you receive a complaint alleging that you have registered the name in bad faith.The complainant does not hold a registered trademark in the name nor do they have a domain name registered,but they have used the business name "Breads R Us" for many years.Which of the following statements is true?

A)You are a cybersquatter.
B)Your domain name dispute must be litigated in court.
C)You can claim good faith justification for your use of your domain name.
D)You have a real property right in the name.
E)The complainant does not have any legitimate claim on the domain name.

Question 6

Canadian courts may decline jurisdiction if the court can be convinced that it would be more reasonable for some other jurisdiction to deal with the matter,especially where an action has already been started in that other jurisdiction.

Question 7

A Canadian company published an article on the internet defaming an Australian resident.The Australian resident brought action against the Canadian company.With regards to internet jurisdiction,which of the following statements is true?

A)Since the plaintiff lives in Australia,and the defendant is based in Canada,a third neutral country would be the appropriate jurisdiction.
B)The Canadian company's appropriate defence would be to point out that it is impossible to know and comply with the laws of every jurisdiction,and therefore it is not liable.
C)Since the plaintiff lives in Australia,and the harm was done in that country,there is a sufficient connection between the defamation and that country,and the case would be heard in an Australian court.
D)Since the plaintiff lives in Australia,and the harm was done in that country,there is no connection between the defamation and Canada,and appropriately there is no jurisdiction.
E)Since the company is Canadian,the most convenient jurisdiction would be the province in which the Canadian company resides.

Question 8

"Existing laws have proven useless with respect to the internet." Discuss the accuracy of this statement.

Question 9

When a foreign judgment is obtained against a business or individual,which of the following statements is true?

A)If the business has no assets in the foreign jurisdiction or if there is no treaty in place to allow for enforcement,enforcement is a substantial threat.
B)Whether a business resides in a foreign or domestic jurisdiction presents no problems regarding enforcement.
C)Since the business resides in a foreign jurisdiction,there is no threat of enforcement.
D)Since the judgment is obtained in a foreign jurisdiction,the business or individual may be extradited to face criminal charges.
E)If the business has assets in the foreign jurisdiction or there are treaties in place to allow for enforcement,it is quite likely that the foreign judgment will be enforced.

Question 10

Discuss the unique challenges that the internet presents with respect to the law and how such challenges are being addressed.

Question 11

With regard to the internet,which of the following statements is true?

A)Regulatory steps have been taken to overcome all problems associated with jurisdictional issues.
B)Judicial action is allowed only if the person being sued is a resident of that jurisdiction.
C)A major problem is to determine what laws apply to the internet and internet transactions.
D)Valid laws apply to the internet,and there have been no difficulties in determining what laws apply to the internet and internet transactions.
E)Determining where an action should be brought has not presented any legal problems.

Question 12

Which of the following statements is incorrect regarding the enforcement of a Canadian judgment abroad?

A)While it may be difficult to enforce such a judgment,there are important treaties in place that allow for such enforcement.
B)Generally,courts are more willing to enforce judgments for money that can be enforced against the assets of an individual or business.
C)Courts tend to be more reluctant to enforce non-monetary judgments against individuals (as compared with monetary judgments).
D)There is a growing trend to enforce injunctions.
E)Generally,courts are becoming more reluctant to enforce injunctions.

Question 13

With regard to the Ontario Consumer Protection Act,which of the following statements is true?

A)The Act specifically provides that the rights set out in it apply only if the seller resides in Ontario at the time of the transaction.
B)The Act specifically provides that the rights set out in it apply to all consumer transactions where the consumer or the other party is located anywhere in Canada at the time of the transaction.
C)The Act specifically provides that the rights set out in it apply only if the consumer resides in Ontario.
D)The Act specifically provides that the rights set out in it apply to all consumer transactions where the consumer or the other party is a Canadian resident.
E)The Act specifically provides that the rights set out in it apply to all consumer transactions where the consumer or the other party is located in Ontario at the time of the transaction.

Question 14

Ontario's Consumer Protection Act specifically provides that the rights set out in it apply to all consumer transactions where the consumer or the other party is located in that province at the time of the transaction and that the rights set out in the Act apply despite any agreement to the contrary.

Question 15

Explain the concept of long-arm statutes.

Question 16

Electronic commerce consists of:

A)the purchase and sale of goods and services at a retail level,but also the goods and services interchanged between businesses.
B)the laws regulating the internet and internet transactions.
C)the laws to restrict internet gambling,pornography,and defamatory material.
D)the digital communication between government agencies.
E)the laws of what jurisdiction should apply to internet transactions.

Question 17

Which of the following is true with respect to the application of tort law to the internet?

A)It is unlikely that courts will be willing to expand existing tort law to encompass new technologies.
B)The principle of defamation will apply to the internet just as it does to any other form of communication,but the problems of jurisdiction and whom to sue will create significant obstacles.
C)Companies that sell their products over the internet cannot be held liable under the laws of negligence if those products cause injury.
D)Since common law provides adequate protection,no new statutes need to be passed to provide additional protection.
E)Because the internet provides direct and inexpensive access to a massive audience,torts such as deceit,negligent misstatement,and defamation as well as normal civil and criminal remedies do not apply.

Question 18

With regard to internet jurisdiction,which of the following statements is true?

A)Every jurisdiction has a different set of laws,and each internet user should conform to the local laws of each nation,state,or province.
B)Judicial action is allowed only if the person being sued is a resident of that jurisdiction and directly involved.
C)Canadian courts are willing to find jurisdiction where there is a real and substantial connection between the act complained of and the province.
D)Many jurisdictions have passed long-arm statutes allowing them to take jurisdiction only if the person being sued is a resident of that jurisdiction.
E)Valid laws apply to the internet,and there have been no difficulties in determining what laws apply to the internet and internet transactions.

Question 19

Long-arm statutes refer to rules used to resolve questions as to which jurisdiction's laws are to be applied to a particular issue.

Question 20

Dan,a Canadian resident,has decided to create a website offering products and services to consumers in certain European markets.Which of the following is true with respect to the jurisdictional issues that arise?

A)Because the website is created to do business in other jurisdictions,the laws of those jurisdictions will apply to the transactions unless it is clearly stated otherwise in the contract.
B)Disclaimers posted on Dan's website will protect him if the content of his website turns out to constitute an offence in the European markets in which he is operating.
C)The laws of the jurisdiction of residence always govern.
D)Dan could not be prosecuted for an activity that is against the law in a European jurisdiction,as long as that activity is acceptable in Canada.
E)It is sufficient for Dan to follow the rules of his own jurisdiction.

Question 21

Businesses can find themselves liable for defamatory statements made by an employee.

Question 22

Which of the following statements regarding cybersquatting is true?

A)Cybersquatters capture domain names that rightfully belong to no one.
B)Businesses that did not register their domain names have no recourse against someone else appropriating their names and registering them first.
C)A business is entitled to its own unique domain name regardless of who registered it first.
D)Registration of domain name precludes someone from registering a similar name to confuse visitors to the business's website.
E)Similar domain names are registered so that visitors making slight but expected mistakes are intercepted and redirected to a competing business.

Question 23

Which of the following is true with respect to the application of contract law to the internet?

A)Online communications are governed by the "post-box rule."
B)No jurisdiction has passed any legislation making electronic communications the equivalent of written documents for legal purposes.
C)Clicking an "I Accept" button on a website is considered the equivalent of achieving the consensus element of a binding contract.
D)If the basic requirements of acceptance are not met,an offer accepted by email is binding on both parties.
E)Internet contracts are governed by the federal Uniform Electronic Commerce Act in effect throughout Canada.

Question 24

Which of the following statements would be true with regard to the Uniform Electronic Commerce Act (UECA)?

A)A signature equivalent may be a password or some other form of encryption.
B)An offer will be accepted and a contract formed only when the offer is sent and accepted by snail mail,and not email.
C)A password or encryption does not authenticate an electronic document.
D)The UECA changes the law with respect to the requirement of written documents and signatures.
E)The use of electronic documents is not allowed with regards to online purchase of goods.

Question 25

Cybersquatting captures domain names that rightfully should go to others.

Question 26

In the context of employment and use of the internet,which of the following is true?

A)Employers can be liable when their employees misuse the internet.
B)Viewing an employee's Facebook account is considered a criminal offence.
C)Employers cannot be held liable when their employees misuse the internet.
D)An employer need not have a clear and comprehensive policy prohibiting misuse of company resources such as the internet.
E)Email should be encouraged over other forms of communication,because it is inherently private.

Question 27

It has been proposed in Bill C-11 that internet service providers (ISPs)would be required to disclose user identities in cases of defamation or other internet offences,but the ISPs would be insulated from any liability.

Question 28

The objective,in Canada,of the Uniform Electronic Commerce Act (UECA)is primarily:

A)to define what constitutes a violation of privacy.
B)to make electronic documents and signatures as binding on parties as written ones.
C)to restrict internet pornography.
D)to restrict internet gambling.
E)to provide a series of remedies for internet commerce retail abuses primarily from "offshore" enterprises.

Question 29

While at work,Neil would spend a considerable amount of time on the internet.After multiple warnings,Neil was fired from his job as a result.To get back at his boss,Neil anonymously posted several untrue and offensive messages about his boss to an internet discussion board frequently visited by his employer's customers and suppliers.Which of the following is true?

A)Neil's internet service provider,not Neil,is the one facing liability for defamation,because it is the one technically publishing the offensive material.
B)If Neil's former boss notifies Neil's internet service provider about the offensive messages,the internet service provider should not remove the messages because free speech is the cornerstone of the internet.
C)Because the messages were posted anonymously,Neil could not be held liable for such discussion board postings.
D)Neil's internet service provider could be forced to disclose the source of the discussion board postings.
E)Because the internet remains largely unregulated,neither Neil nor his internet service provider could be held liable for such discussion board postings.

Question 30

Discuss the federal Uniform Electronic Commerce Act (UECA).

Question 31

Discuss the validity of online transactions,and the related issues that arise in transacting business over the internet.

Question 32

Describe the concept of cybersquatting.

Question 33

Employers are particularly vulnerable to the misuse of their computer resources by employees.Discuss.

Question 34

Discuss any liability faced by the internet service provider (ISP)in cases where defamatory or other offensive statements are made on the internet.

Question 35

Deceitful practices and fraud are ongoing concerns for those transacting business on the internet.Pat has recently been the victim of such a scam.He gets into a heated discussion with a friend over the application of current consumer protection laws to online transactions.Which of the following statements is correct?

A)Although new legislation may be enacted in the future,general consumer protection legislation has yet to be extended to online transactions in any Canadian jurisdiction.
B)Consumer protection law in respect of online transactions is governed by the federal Universal Internet Transactions Act (UITA).
C)While case law applies to online activities,statute law-such as sale of goods legislation-does not apply to such transactions.
D)Provinces are adopting federal Uniform Electronic Commerce Act guidelines.
E)Provincial consumer protection legislation has been ineffective in protecting consumers with respect to internet transactions.

Question 36

Describe the most common type of tort on the internet.

Question 37

Which of the following statements correctly illustrates a legal signature for online commercial transactions?

A)signing your name at the bottom of a standard form,and then not mailing it to the business
B)clicking an "I Reject" dialogue box
C)opening an online shopping basket,and adding several items to the basket
D)attaching a signature on your computer screen
E)attaching an electronic signature to an electronic document

Question 38

A signature equivalent for electronic documents might be a password or some other form of encryption.

Question 39

The most common type of tort on the internet is:

A)inducing breach of contract.
B)battery.
C)defamation.
D)conspiracy.
E)cybersquatting.

Question 40

Traditional contract rules only apply to written contracts and not to internet transactions.

Question 41

Describe electronic signatures with respect to capacity.

Question 42

Click Enterprises operated a software and internet business in Ontario to facilitate the illegal copying and downloading of movies in both Canada and the United States (including New York State).Disney Enterprises brought action against Click in New York.Which of the following statements is true?

A)An Ontario court will enforce a New York judgment since Click's involvement indicated a real and substantial connection between the conduct complained of and New York State.
B)Even though Click's involvement in the United States consisted of selling its product directly to residents of the United States,the question of jurisdiction would be solely determined by Click's nationality.
C)An Ontario court will not enforce a New York judgment regardless of any circumstances.
D)Click's involvement in the United States was not direct,since the firm operated in Canada,and as a consequence Disney's action in New York State would not be successful.
E)New York State has no jurisdiction since Click is a Canadian company.

Question 43

Discuss Bill C-28,Canada's anti-spam legislation,which was passed into law in December 2010.

Question 44

Discuss alternate dispute resolution with respect to international transactions.

Question 45

Online dispute resolution services for electronic transactions are less expensive and less time consuming than traditional court processes.

Question 46

Which of the following statements regarding online transactions is true?

A)Conducting transactions online negates the need to satisfy the normal requirements of a contract.
B)Electronic signatures are not effective in determining the capacity of the parties entering into a contract.
C)Common law has established the equivalency of electronic documents to written ones.
D)The post-box rule applies to both non-instantaneous and instantaneous methods of communication.
E)Clicking an "I Accept" button may constitute valid acceptance of the terms of an agreement.

Question 47

Alternate dispute resolution has been effective in settling certain types of internet disputes.

Question 48

The Canadian government was successful in forcing the Canadian components of eBay to disclose their financial records on certain "power sellers" to Revenue Canada.

Question 49

PayPal and other similar services are foolproof methods to ensure the consumer gets what he or she has paid for.

Question 50

Determining where the contract was formed is an important factor in determining the laws of what jurisdiction will apply to the transaction.

Question 51

Which of the following is used to authenticate the identity of a party to an online contract?

A)file formatting
B)information encryption security
C)digital certificate
D)a court order
E)digital waterboarding

Question 52

After years of consultation and debate over Canadian copyright reform,Bill C-11 was finally passed in June,2012.This amendment to the Copyright Act is intended to control the downloading of all of the following except:

A)music.
B)games.
C)movies.
D)other forms of information and data.
E)viruses.

Question 53

Whether a contract or another form of internet communication,Uniform Electronic Commerce Act (UECA)provisions determine that a message is sent as soon as it is committed to the system and is received as soon as it is read by the recipient.

Question 54

With respect to the online contracts,which of the following statements is true?

A)Determining where the contract was formed is important in determining the legality of the contract.
B)Determining where the contract was formed is not important in determining which jurisdiction's consumer protection legislation applies.
C)Online contracts do not require all essential elements of a contract,such as consensus,capacity,and legality.
D)The legal status of online contracts is determined by common law.
E)Determining where the contract was formed is not important in determining the capacity of the parties to the contract.

Question 55

With regard to international business transactions,which of the following statements is true?

A)There is no international court that deals with private disputes between businesses.
B)There is a set of international laws that applies to all international transactions.
C)The World Trade Organization litigates private disputes between businesses.
D)The buyer must look to the local court in the seller's jurisdiction to resolve his or her problems.
E)The General Agreement on Tariffs and Trade deals with private disputes between litigants.

Question 56

With regard to online contracts,which of the following statements is accurate?

A)Consumers cannot be held liable for terms that they did not actually read.
B)The electronic equivalent of small print is the part of a document that cannot be seen on the screen.
C)Canadian consumers may have to have their claims heard in foreign jurisdictions.
D)Exemption clauses in electronic contracts do not have to be brought to the attention of the person accepting.
E)An electronic document becomes effective only once the consumer is provided with a paper copy.

Question 57

Hitting the "I Accept" button on a website is equivalent to an acceptance of the seller's offer.

Question 58

Which of the following issues is not covered in Canada's anti-spam legislation?

A)unsolicited commercial email
B)collection of personal information
C)spyware
D)identity theft
E)downloading of music,games,and movies

Question 59

An electronic signature provides a digital certificate that authenticates the identity of a party to the contract.

Question 60

Which of the following statements is true?

A)Online dispute resolution services are now available for electronic transactions.
B)The legal status of online contracts is determined by common law.
C)Arbitration has not been proved to be a valuable tool for ecommerce disputes.
D)Online dispute resolution services are very costly and time consuming.
E)Online disputes are often self-regulated.

Question 61

In most cases,it is best for parties to a contract to include a provision in the agreement to have any disputes between them arbitrated,usually using one of the international arbitration services available for that purpose.

Question 62

Discuss the international court with respect to international business transactions.

Question 63

International business contracts may also include specialty contracts such as a bill of lading,letters of credit,or insurance.

Question 64

Discuss various forms of specialty contracts that may be involved in international business transactions.

Question 65

In which of the following ways can Canadian businesses become involved with businesses in different countries?

A)Canadian businesses can be involved in joint ventures with a business in a foreign country.
B)Canadian businesses can import or export goods.
C)Canadian businesses may have licensing agreements of intellectual property with foreign businesses.
D)Canadian businesses may become involved in providing or acquiring services from other jurisdictions.
E)All of the above

Question 66

Discuss the advantages of arbitration in international business.

Question 67

Which of the following provided rules to guide international bodies handling arbitrations?

A)the International Chamber of Commerce
B)the United Nations Commission on International Trade Law
C)the National Arbitration Forum
D)the International Commercial Centre Arbitration
E)the American Arbitration Association

Question 68

An international court to litigate private disputes between businesses doing business between jurisdictions exists within the World Trade Organization.

Question 69

Alternate dispute resolution generally consists of negotiation,mediation,and/or arbitration.When dealing with international disputes,arbitration is particularly appropriate due to the potential expense and delay associated with litigation in a foreign court.The best way to avoid the risks of dealing with foreign courts involving international disputes is to:

A)ensure that a provision is included in any contract requiring disputes arising from the transaction be submitted to an arbitrator.
B)ensure that any dispute be litigated immediately in Canada requesting that the court order arbitration.
C)bring a motion in the foreign jurisdiction for immediate determination as to what law applies.
D)ensure that offshore bank accounts are set up to avoid easy seizure resulting from a foreign judgment.
E)ensure that the best local lawyers are hired in the foreign jurisdiction before any dispute arises so as to prevent the opposing party from retaining them later.

Question 70

Explain how Canadian businesses can become involved in business in different countries.

Question 71

Helen is the owner of a Japanese company that manufacturers car audio parts.Several months ago she received a favourable award in an arbitration in Japan against a Canadian car manufacturer for unpaid bills.The Canadian manufacturer has several assets in Canada,but none in Japan.Which of the following statements is true?

A)The award must be enforced in Japan,but since the Canadian manufacturer has no assets in Japan,it is highly unlikely that Helen will ever receive the award.
B)The award cannot be enforced since the dispute was settled by arbitration.
C)The award must be enforced in Japan,and since the Canadian manufacturer only has assets in Canada,it is highly unlikely that Japan will litigate further.
D)The award cannot be enforced in Canada since it took place in Japan.
E)The award can be enforced by a court anywhere in Canada.

Question 72

E & J Mining will be involved in several large mining projects in a number of developing countries.One of these countries is suffering from some political instability,and the company is concerned about potential expropriation or political violence that could disrupt its operations.Which of the following resources would most likely be able to offer insurance to E & J,given the nature of the risks it could face?

A)the Export Development Bank
B)the International Chamber of Commerce
C)Foreign Affairs and International Trade Canada
D)The Organisation for Economic Co-operation and Development
E)the RCMP

Question 73

When comparing international contracts with domestic contracts,which of the following statements is true?

A)International contracts have no international court to litigate private matters,while domestic contracts have the Canadian judicial system to litigate private matters.
B)International contracts are less complex than domestic contracts.
C)Domestic contract disputes can be resolved by the World Trade Organization.
D)International contract disputes can be resolved by the World International Court of Trade Appeals.
E)Domestic contracts are more complex because they have special problems such as transportation and insurance.

Question 74

Canadian courts do not provide for the enforcement of international arbitration awards pursuant to international treaties.

Question 75

Mandu lives in Toronto and would like to take advantage of a business opportunity to import goods from a company in China.In order to avoid the possibility of a dispute between himself and the foreign company,he should:

A)include a provision in the contract stating that the law of a particular jurisdiction will govern the transaction in the event of a dispute.
B)make no reference in the contract with respect to jurisdiction.
C)include a provision in the contract stating that the International Court of the World will have jurisdiction.
D)include a provision in the contract stating that the contract is subject to the exclusive jurisdiction of Ontario.
E)include a provision in the contract stating that the contract is subject to the exclusive jurisdiction of China.

Question 76

Mr.Smith and Sr.Zarza are negotiating an international contract for the sale of wicker furniture.They have agreed that,while they hope there will be no disputes,they want to include terms in the contract that would ensure that any disputes would be resolved favourably with limited time delay and minimal expense.Which of the following set of terms should they include in their contract?

A)limited liability,insurance,and mediation of disputes
B)unlimited liability,insurance,and arbitration of disputes
C)limited liability,payment in 90 days,and arbitration of disputes
D)limited liability,insurance,mediation of disputes,and payment in 90 days
E)limited liability,insurance,and arbitration of disputes

Question 77

Tony is a resident of Ontario,and Singh is a resident of England.They contract to sell Tony's car to Singh,who is emigrating to Canada.The contract contains a provision stating that the contract is "subject to the laws of the Province of Ontario." Which of the following statements is accurate?

A)The clause will determine that Ontario laws will govern the transaction.
B)The clause gives exclusive jurisdiction to the courts of England,but they must apply Ontario laws.
C)The clause will render the contract void,since a person cannot determine the jurisdiction that will govern the transaction.
D)The clause will determine that Ontario courts have exclusive jurisdiction.
E)The clause will determine that Ontario courts have exclusive jurisdiction,unless challenged by Singh in England.

Question 78

Discuss the role of governments when companies engage in large projects abroad.

Question 79

When dealing with international business transactions,knowing and complying with both local and Canadian policies and laws is an important consideration.This generally will include all of the following except:

A)arrangements for financing.
B)ensuring that contractual terms limiting liability are included in agreements.
C)ensuring adequate insurance coverage is acquired.
D)ensuring that a process for arbitrating disputes is clearly set out.
E)ensuring that foreign officials who can impact on the success of the business are appropriately taken care of.

Question 80

Bilateral investment treaties (BITs)and foreign investment and promotion agreements (FIPAs)are government initiatives designed to stabilize the investment environment for corporations doing business abroad,especially for those involved in mining and natural resource extraction in countries where the political climate is unstable.