The Legal Environment of Business and Online Commerce, 7e (Cheeseman)
Chapter 11 E-Commerce and Digital Law
1) The World Wide Web consists of computers that support a standard set of rules for the
exchange of information called File Transfer Protocol.
2) Parties enter into an electronic mail contract by the use of e-mail.
3) E-mail contracts need not meet the Statute of Frauds requirements as long as they meet
UCITA guidelines.
4) The CAN-SPAM Act does not can spam but instead approves businesses to use spam as long
as they do not lie.
5) The CAN-SPAM Act does not regulate spam sent to Americans from other countries.
6) ISPs provide e-mail accounts to users, Internet access, and storage on the Internet.
7) The term ISP refers to users who disguise computer viruses as executable programs and send
them across the Internet.
8) ISPs are not liable for the content transmitted over their networks by e-mail users and
websites.
9) 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.
10) The CAN-SPAM Act requires spammers to label sexually oriented e-mail as such.
11) Counteroffers are not effective against electronic agents.
12) A license is a contract that transfers complete rights in intellectual property and
informational rights.
13) Data and software do not constitute intellectual property or information rights.
14) Data and software do not constitute intellectual property or information rights.
15) A licensee is a party who is granted limited rights in intellectual property or informational
rights owned by another person or company.
16) If Jim purchases an online license for a computer game, he is an e-licensor.
17) The UCITA makes it illegal to access another person’s stored e-mail.
18) The ECPA provides that stored electronic communications may be accessed by the party or
entity providing the electronic communication service.
19) A network extension is a unique name that identifies an individual’s or company’s website.
20) The .org domain name extension represents a resource website.
21) The .biz extension is used for large-business and corporate websites.
22) .bz is a restricted domain extension and can only be used by businesses or organizations in
Brazil.
23) Registering a domain name of another party’s trademarked name or famous person’s name is
called cybersquatting.
24) 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.
25) 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.
26) 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
27) Which of the following best describes the World Wide Web?
A) a connection of millions of computers that support a standard set of rules for the exchange of
information
B) a network of millions of smaller networks, each with an independent set of standards
C) a connection of millions of computers across the world with no specific standards or time
constraints for exchange of data
D) a world-wide network of millions of smaller networks with a different standard of
information exchange in each country
28) 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) Web pages are stored on servers which are operated by Internet service providers.
29) A(n) ________ refers to a contract that is entered into by the parties by use of e-mail.
A) web contract
B) online contract
C) e-mail contract
D) ISP contract
30) 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.
31) 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.
32) 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.
33) 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 is true of 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.
34) 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.
D) Services can be listed for sale on websites.
35) 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 instance of
________.
A) e-licensing
B) e-commerce
C) cybersquatting
D) licensing agreement
36) 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
37) What does the E-SIGN Act provide?
A) Contracts delivered electronically are denied effect.
B) Electronic records can be sent to consumers who make a purchase, without their specific
consent to receiving the record.
C) An e-signature is treated equal to a pen-and-paper signature.
D) Only smart card verification creates a legally binding signature in cyberspace.
38) Jessica wants to buy a laptop from the Tell 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) e-signature
C) exclusive license
D) cybersquatting
39) 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
40) Most web pages use electronic ordering systems that do not have the ability to evaluate and
accept ________.
A) counteroffers
B) e-licenses
C) e-signatures
D) biometric data
41) 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
42) 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 establishes the Statute of Frauds for all online content.
C) It aims at eliminating all domain names registered in bad faith.
D) It becomes law only when a state legislature enacts it as a statute.
43) A(n) ________ refers to a contract that transfers limited rights in intellectual property and
informational rights.
A) contract
B) tender
C) license
D) domain name
44) 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
45) 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
46) Which of the following is true of a license?
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 that are
necessary to exercise the expressly described rights.
47) What is an exclusive license?
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 access to exclusive intellectual property
48) A(n) ________ is a contract whereby 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) Terms of Service document
C) domain
D) digital signature
49) KCube Multimedia launches a new game. It permits Ken to download, install and play the
game for three months. This is an instance of ________.
A) e-license
B) contract
C) domain name registration
D) digital signature
50) 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 ________.
A) digital signature
B) digital identification
C) licensing agreement
D) implicit contract
51) 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
52) Which of the following does the ECPA provide?
A) Businesses are allowed send spam e-mails, as long as they do not lie.
B) ISPs are not liable for the content transmitted over their networks by e-mail users and
websites.
C) An e-signature is as effective as a pen-and-paper signature.
D) It is a crime to intercept an electronic communication at the point of transmission.
53) Who among 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
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.
54) A(n) ________ uniquely identifies an individual’s or company’s website.
A) e-signature
B) digital footprint
C) e-mail address
D) domain name
55) What is the first step in registering a domain name?
A) determining whether any other party already owns the name
B) determining if the name does justice to the image of the company or individual
C) finding an extension that attracts maximum web traffic
D) enrolling with a service provider to host the website
56) Which of the following domain extensions signifies a resource website?
A) .com
B) .org
C) .edu
D) .info
57) ________ is the most widely used domain extension in the world.
A) .net
B) .com
C) .biz
D) .org
58) 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) .org
C) .edu
D) .pro
59) The ________ issued new rules that permit a party to register a domain name with new TLD
suffixes that are personalized.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
60) 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
61) What measures has Congress taken to regulate spam e-mail?
62) How does an electronic agent react to a counteroffer? Explain with an illustration.
63) Explain in brief the working of an e-license.
64) 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?
65) What is cybersquatting? Can trademark owners recover domain names registered in bad
faith?
66) The World Wide Web consists of millions of computers that support a standard set of rules
called ________ for the exchange of information.
67) The ________ is an electronic connection of millions of computers that support a standard
set of rules for the exchange of information.
68) The ________ is a federal statute that places certain restrictions on persons and businesses
that send unsolicited commercial advertising to e-mail accounts, prohibits falsified headers,
prohibits deceptive subject lines, and requires spammers to label sexually oriented e-mail as
such.
69) The ________ provides that Internet service providers are not liable for the content
transmitted over their networks by e-mail users and websites.
70) The ________ gives an e-signature the same force and effect as a pen-inscribed signature on
paper.
71) ________ are state laws that require certain types of contracts to be in writing.
72) A(n) ________ is any computer system that has been established by a seller to accept orders.
73) The ________ is a model state law that creates contract law for the licensing of information
technology rights.
74) The term ________ refers an owner of intellectual property or informational rights who
transfers rights in the property or information to another party.
75) The term ________ refers to a party who is granted limited rights in or access to intellectual
property or informational rights owned by a licensor.
76) A(n) ________ grants the licensee exclusive rights to use informational rights for a specified
duration.
77) A(n) ________ refers to a contract whereby 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.
78) The ________ makes it a crime to intercept an electronic communication at the point of
transmission, while in transit, when stored by a router or on a server, or after receipt by the
intended recipient.
79) Registering a domain name of another party’s trademarked name or famous person’s name in
bad faith is called ________.
80) The ________ 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.