Business Law, 8e (Cheeseman)
Chapter 17 E-Commerce and Digital Law
1) The UCITA provides rules for contracts involving computer information transactions and
software and information licenses.
2) The World Wide Web consists of computers that support a standard set of rules for the
exchange of information, called Hypertext Transfer Protocol.
3) Each website has a unique online address.
4) E-mail contracts are enforceable even if they don’t meet traditional contract requirements.
5) E-mail contracts do not meet the requirements of the Statute of Frauds.
6) The CAN-SPAM Act does not can spam but instead approves businesses to use spam as long
as they do not lie.
7) The CAN-SPAM Act does not regulate spam sent to Americans from other countries.
8) ISPs provide e-mail accounts to users, Internet access, and storage on the Internet.
9) The term ISP refers to users who disguise computer viruses as executable programs and send
them across the Internet.
10) ISPs are not liable for the content transmitted over their networks by e-mail users and
websites.
11) According to the Communications Decency Act, Internet service providers (ISPs) are not
liable for the content transmitted over their networks by e-mail users and websites.
12) A Web contract is enforceable only if it meets the requirements of a traditional contract.
13) The E-SIGN Act is a not a federal statute and state legislatures are required to adopt it in
order for it to become state law.
14) Counteroffers are not effective against electronic agents.
15) The UCITA does not become law until a state‘s legislature enacts it as a state statute.
16) A license is a contract that transfers complete rights in intellectual property and
informational rights.
17) Data and software do not constitute intellectual property.
18) A licensor is a party who is granted limited rights in intellectual property or informational
rights owned by another person or company.
19) An exclusive license means that for the specified duration of the license, the licensor will not
grant rights in the same information to any other person.
20) An e-license is a contract whereby the owner of software grants limited rights to the owner
of a computer or digital device to use the software.
21) If Jim purchases an online license for a computer game, he becomes an e-licensor.
22) The parties to a contract for the licensing of information owe a duty to perform the
obligations stated in the contract.
23) Breach of contract by one party to a licensing agreement gives the nonbreaching party the
right to recover damages.
24) The ECPA is a federal statute that makes it a crime to intercept an electronic communication
at the point of transmission, while in transit, when stored by a router or server, or after receipt by
the intended recipient.
25) The UCITA makes it illegal to access another person’s stored e-mail.
26) The ECPA provides that stored electronic communications may not be accessed by the party
or entity providing the electronic communication service.
27) A network extension is a unique name that identifies an individual’s or company’s website.
28) A “Whois” database maintained by the InterNIC contains all the domain names that have
been registered.
29) The.org domain name extension represents a U.S. website.
30) The.pro domain name extension is available to professionals, such as doctors, lawyers, and
consultants.
31) The.biz extension is used for large-business and corporate websites.
32) .bz is a restricted domain extension and can only be used by businesses or organizations in
Brazil.
33) Registering a domain name of another party’s trademarked name or famous person’s name in
bad faith is called cybersquatting.
34) The Anticybersquatting Consumer Protection Act is a federal statute that makes online
impersonation of another person, misrepresentation of another person, business or organization
using inappropriate words, imagery or other media illegal.
35) The ACPA is federal statute that permits trademark owners and famous persons to recover
domain names that use their names where the domain name has been registered by another
person or business in bad faith.
36) The computers that constitute the World Wide Web use a standard set of rules known as
________ for the exchange of information.
A) POP
B) POP3
C) HTTP
D) IMAP
37) Which of the following is an example of Web-browsing software?
A) Microsoft Internet Explorer
B) Adobe Acrobat Reader
C) Outlook Express
D) BitTorrent
38) Which of the following is true of the World Wide Web?
A) Only businesses—not individuals—can have their own websites.
B) Individuals need not register with a service provider to access the web.
C) A website can have several online addresses.
D) Each website must have a unique online address.
39) Which of the following statements is true of e-mail contracts?
A) All e-mail contracts require consideration, capacity and lawful object.
B) E-mail contracts are exempted from the requirements of the Statute of Frauds.
C) E-mail contracts are enforceable even if they don’t meet the requirements of a traditional
contract.
D) Several e-mails cannot be integrated to determine the parties’ agreement.
40) Which of the following acts regulates spam e-mail on the Internet?
A) Anticybersquatting Consumer Protection Act
B) Controlling the Assault of Non-Solicited Pornography and Marketing Act
C) Communications Decency Act
D) Uniform Computer Information Transactions Act
41) Which of the following is true of the CAN-SPAM Act?
A) It regards spam e-mail as a punishable offence.
B) It prohibits spammers from sending sexually-explicit e-mail.
C) It approves businesses to use spam as long as they do not lie.
D) It provides a civil right of action to individuals who have received unsolicited spam.
42) The CAN-SPAM Act ________.
A) regulates spam sent internationally to Americans from other countries
B) provides a civil right of action to individuals who have received unsolicited spam
C) prohibits the messages themselves from containing graphic sexually explicit material.
D) prohibits businesses from using spam to further their commercial interests.
43) ________ are companies that provide consumers and businesses with access to the Internet.
A) ISPs
B) BPOs
C) DSLs
D) IPOs
44) What does the Communications Decency Act of 1996 provide?
A) Businesses can send spam e-mails, as long as they don’t lie.
B) ISPs are not liable for the content transmitted over their networks by e-mail users and
websites.
C) Businesses are liable for invading the right to privacy if they send unsolicited e-mails.
D) The number of servers an ISP can access in a geographical location is limited.
45) LetsConnect is a three-month-old Internet service provider in the U.S.A. In the last two
months, it was discovered that several LetsConnect users exchanged online material that is
illegal in the United States. The ISP took no measures to investigate the matter or prevent it.
Which of the following holds true in this case?
A) The users of LetsConnect are not liable for the material they exchanged.
B) The ISP is not liable for the content transmitted over its network.
C) The ISP will be prosecuted for abusing the freedom of speech.
D) The ISP will be prosecuted for violating the Communications Decency Act.
46) Which of the following is true of e-commerce?
A) Lessors cannot use web addresses to lease goods.
B) Intellectual property cannot be explicitly listed for sale on a website.
C) A Web contract is not binding, as opposed to an e-mail contract, which is.
D) A Web contract is not valid if it does not fulfill all the elements of a traditional contract.
47) Barney wants to rent an apartment and posts an advertisement in a classifieds website. Two
days later, Michael, who wants to rent out his apartment, e-mails Barney and they finalize the
deal over the Internet. Barney pays Michael through an online transfer. This is an example of
________.
A) e-licensing
B) e-commerce
C) cybersquatting
D) spamming
48) The ________ recognizes electronic contracts as meeting the writing requirement of the
Statute of Frauds for most contracts.
A) Uniform Commercial Code
B) Uniform Computer Information Transactions Act
C) E-SIGN Act
D) Communications Decency Act
49) What does the E-SIGN Act provide?
A) Electronically signed contracts cannot be denied effect because they are in electronic form.
B) Electronic records can be sent to consumers who make a purchase, without their specific
consent to receiving the record.
C) It defines which technologies should be used to create a legally binding signature in
cyberspace.
D) Only smart card verification creates a legally binding signature in cyberspace.
50) Jessica wants to buy a laptop from the Tenn Computers website. Before confirming the
purchase, the website asks her to provide biometric identification using an electronic scanner.
This is an example of ________.
A) e-licensing
B) an e-signature
C) an exclusive license
D) cybersquatting
51) Which of the following is an example of an e-signature?
A) using a credit card at the supermarket to pay for groceries
B) using a debit card to fill gas as the local gas station
C) ordering Chinese food over the phone and paying with a credit card
D) paying the electric bill online using a smart card
52) Under the E-SIGN Act, an e-signature can be verified by using ________.
A) a smart card
B) a domain name
C) HTTP
D) an ISP
53) A(n) ________ is any computer system that has been established by a seller to accept orders.
A) electronic agent
B) top-level extension
C) cybersquatter
D) licensor
54) The ________ establishes a uniform and comprehensive set of rules that govern the creation,
performance, and enforcement for computer information transactions.
A) CAN-SPAM Act
B) UCITA
C) ECPA
D) ACPA
55) Which of the following is true of the UCITA?
A) It establishes a uniform set of rules that prohibit all forms of cybersquatting.
B) It defines which technologies should be used to create a legally binding signature in
cyberspace.
C) It aims at eliminating all domain names registered in bad faith.
D) It governs the creation, performance, and enforcement for computer information transactions.
56) A(n) ________ refers to a contract that transfers limited rights in intellectual property and
informational rights.
A) lien
B) tender
C) license
D) trademark
57) A(n) ________ is an owner of intellectual property or informational rights who transfers
rights in the property or information to another party.
A) lessor
B) lessee
C) licensee
D) licensor
58) A(n) ________ refers to a party who is granted limited rights in or access to intellectual
property or informational rights owned by another party.
A) lessor
B) lessee
C) licensee
D) licensor
59) Which of the following is true of licenses?
A) A license grants the licensee complete control over intellectual property.
B) An exclusive license is granted to only one licensee for a specific period.
C) A licensee has complete control over the information he or she is allowed to access.
D) A licensee has the right to use information rights beyond the licensor’s control.
60) An exclusive license is defined as ________.
A) a license that grants access to exclusive information for a limited period
B) a license that restricts the licensee to some information only
C) a license that is granted to only one party for a specific period
D) a license that grants licensees only a few rights in intellectual property
61) A(n) ________ is a contract by which the owner of software or a digital application grants
limited rights to the owner of a computer or digital device to use the software or digital
application for a limited period and under specified conditions.
A) e-license
B) ISPS
C) domain
D) digital signature
62) A(n) ________ is a detailed and comprehensive written agreement between a licensor and a
licensee that sets forth the express terms of their agreement.
A) digital signature
B) electronic agent
C) license agreement
D) electronic signature
63) While downloading a license to a software program, Harriet reads the Terms of Agreement
document which states that the company is not liable for any unforeseen damages that arise from
the software. Harriet clicks on “Accept” and continues to install the program. The document is an
example of a(n) ________.
A) digital signature
B) digital identification
C) licensing agreement
D) implicit contract
64) The ________ is a federal statute that makes it a crime to intercept an electronic
communication at the point of transmission, while in transit, when stored by a router or server, or
after receipt by intended recipient.
A) UCITA
B) ECPA
C) ACPA
D) ICANN
65) The ECPA is a federal statute that ________.
A) establishes that businesses are allowed send spam e-mails, as long as they do not lie
B) rules that ISPs are not liable for the content transmitted over their networks by e-mail users
and websites
C) establishes that an e-signature is as effective as a pen-and-paper signature
D) makes it a crime to intercept an electronic communication at the point of transmission
66) If Alice—Bob’s daughter—reads e-mails stored in Bob’s personal e-mail folder, she has
violated the ________ and is liable for prosecution.
A) UCITA
B) ACPA
C) ECPA
D) ICANN
67) Which of the following can access Henry’s stored electronic communications without
violating the ECPA?
A) Henry’s colleague at work, who is working on the same project as Henry and needs the
information
B) Henry’s wife, who suspects him of cheating on her
C) Henry’s boss, who suspects him of leaking confidential information
D) Henry’s personal finance advisor, who wants to see if he has sufficient funds to make an
investment
68) Which of the following entities does the ECPA permit to access stored electronic
communication?
A) law enforcement entities performing an investigation
B) the owner of the website where the user has an e-mail account
C) the Internet service provider
D) the bank where an account holder keeps his finances
69) A(n) ________ uniquely identifies an individual’s or company’s website.
A) e-signature
B) digital footprint
C) e-mail address
D) domain name
70) Which of the following top-level domain name extensions is most commonly used by ISPs,
Web-hosting companies, and other businesses that are directly involved in the infrastructure of
the Internet?
A) .net
B) .com
C) .biz
D) .org
71) ________ is the most widely used domain extension in the world, and is preferred by
businesses.
A) .net
B) .com
C) .biz
D) .org
72) Which of the following domain extensions signifies a resource website, and is an unrestricted
global name that may be used by businesses, individuals, and organizations?
A) .name
B) .coop
C) .mobi
D) .info
73) Jonathan Smith, a neurosurgeon in Oregon, wants to start a website that makes it possible for
neurosurgeons across the world to work on cases in collaboration. Which of the following
domain extensions is most apt for Smith’s website?
A) .com
B) .coop
C) .biz
D) .pro
74) The ________ issued new rules that permit a party to register a domain name with
personalized TLD suffixes.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
75) The ________ is a federal statute that permits trademark owners and famous persons to
recover domain names that use their names where the domain name has been registered by
another person or business in bad faith.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
76) What measures has Congress taken to regulate spam e-mail?
77) How does an electronic agent react to a counteroffer? Explain with an illustration.
78) Briefly explain the working of an e-license.
79) Joan reads e-mails from Harold’s personal e-mail folder. Which statute has Joan violated and
why? Under what circumstances is she permitted to read Harold’s e-mail?
80) What is cybersquatting? Can trademark owners recover domain names registered in bad
faith?