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Chapter 15
Internet Law,
Social Media, and Privacy
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. In some states, an unsolicited e-mail must include a toll-free phone number
that the recipient can use to ask the sender to send no more unsolicited e-mail.
2. Federal law permits the sending of unsolicited commercial e-mail and does not
prohibit spamming activities.
3. Cybersquatting is illegal only if a domain name is identical to the trademark of
another, not if the name is merely confusingly similar.
4. Cybersquatting occurs when key words are inserted into the hyper text markup
language code to tell Internet browsers specific information about a Web page.
2 TEST BANK—UNIT THREE: THE COMMERCIAL ENVIRONMENT
5. Using another’s trademark in a meta tag is not permissible, even if the use is
reasonably necessary.
6. Trademark dilution occurs when a person registers a domain name that is the
same as, or confusingly similar to, the trademark of another and then offers to
sell the domain name back to the original owner.
7. When you download an application on your smartphone, you are typically
entering into a license agreement.
8. Much of the material on the Internet, including software and database
9. The law does not restrict the “fair use” of methods for the circumvention of
encryption software or other technological antipiracy protection for educational
and other noncommercial purposes.
10. An Internet service provider (ISP) is not liable for copyright infringement by its
customer unless the ISP is aware of the subscriber’s violation.
11. No federal court has held that digitally sampling a copyrighted sound recording
of any length constitutes copyright infringement.
12. Employees who use social media in a way that violates their employer’s stated
policies cannot be disciplined or fired from their jobs.
13. Federal wiretapping law covers electronic forms of communication.
14. Federal law permits the intentional interception of any wire, oral, or electronic
communication.
15. Employers can monitor employees’ electronic communications made in the
ordinary course of business, including employees’ personal communications.
16. Federal law permits the intentional accessing of stored electronic
communication even if the accessing is unauthorized.
17. Law enforcement uses social media to detect and prosecute criminals.
4 TEST BANK—UNIT THREE: THE COMMERCIAL ENVIRONMENT
18. Social media posts are routinely included in discovery in litigation.
19. Online defamation is wrongfully hurting a person’s reputation by
communicating false statements about that person to others online.
20. It is frequently the companies rather than courts or legislatures that are defining
the privacy rights of their online users.
MULTIPLE-CHOICE QUESTIONS
Fact Pattern 15-1 (Questions 1–3 apply)
Great Looks Clothing Corporation sends daily e-mail ads to its previous customers
and those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to
any e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene
sends e-mail notes to her friends, relatives, and co-workers, discussing personal
issues and recommending products or services that she likes.
1. Refer to Fact Pattern 15-1. Federal law preempts state antispam laws
a. with no exceptions.
b. except for laws that require the use of spam by business entities.
c. except for statutes that ban the use of spam altogether.
d. except for provisions that prohibit false and deceptive e-mailing
practices.
2. Refer to Fact Pattern 15–1. One of the senders—Great Looks, Hot Trends, or
Ilene—is acting outside the bounds of federal law. Federal law prohibits the
sending of
a. unsolicited commercial e-mail.
CHAPTER 15: INTERNET LAW, SOCIAL MEDIA, AND PRIVACY 5
b. solicited commercial e-mail.
c. commercial e-mail to randomly generated addresses.
d. non-commercial e-mail that promotes a product or service to a friend,
co-worker, or relative.
3. Refer to Fact Pattern 15–1. Great Looks and Hot Trends are subject to the laws
of the states in which they are located and do business. Many states
a. prohibit false and deceptive e-mailing practices.
b. require the use of spam by business entities.
c. ban the use of spam altogether.
d. preempt the application of federal law to commercial e-mail.
4. ConnectWeb, Inc., an Internet service provider (ISP), supplies information to
the Federal Trade Commission concerning possible unfair or deceptive conduct
in foreign jurisdictions. For this disclosure, federal law gives ConnectWeb and
other ISPs immunity from liability. This is
a. goodwill.
b. fair use.
c. a safe harbor.
d. a license.
6 TEST BANK—UNIT THREE: THE COMMERCIAL ENVIRONMENT
Fact Pattern 15-2 (Questions 5–7 apply)
CallTalk Corporation, a smartphone and phone-time seller, chooses to use and
register “calltalk” as its second-level domain. Later, CallTalk’s less successful
competitor, CellTalk Company, chooses to use and register “caltalk” (an intentional
misspelling of “calltalk”) as its second-level domain. Still later, Call&Talk, Inc., uses
the domain name “callltalk” (also a deliberate misspelling of “calltalk”) without
CallTalk’s authorization, to sell pornographic phone conversations.
5. Refer to Fact Pattern 15-2. By using a similar domain name to CallTalk’s,
CellTalk is most likely attempting to profit from its competitor’s
a. goodwill.
b. fair use.
c. license.
d. safe harbor.
6. Refer to Fact Pattern 15-2. CallTalk wants to sue Call&Talk for its unauthorized
use of the domain name “callltalk.” Before bringing the suit, CallTalk has to ask
the court for a subpoena to discover
a. the true identity of the owner of the unauthorized site.
b. the amount of the profits of the unauthorized site.
c. the estimated costs of the court proceedings and discovery.
d. all of the registered variations of the name “calltalk.”
7. Refer to Fact Pattern 15-2. Call&Talk’s use of the domain name “callltalk,”
without CallTalk’s authorization, to sell pornographic phone conversations, is
a. goodwill.
b. fair use.
c. a license.
d. trademark dilution.
8. BeFriends Corporation uses the trademark of Community Life Inc., a social
media site, as a meta tag without Community Life’s permission. This may be
permissible
a. if the appropriating site has nothing to do with the meta tag.
b. if the two sites appear in the same search engine results.
c. if the use is reasonably necessary.
d. under no circumstances.
9. BurgerBoy Restaurant Corporation allows its trademark to be used as part of a
domain name for BurgerBoyNY, Inc., an unaffiliated company. BurgerBoyNY
does not obtain ownership rights in the mark. This is
a. goodwill.
b. fair use.
c. a license.
d. a safe harbor.
10. InfoFree Inc., makes and sells devices and services for the circumvention of
encryption software and other technological antipiracy protection. Under the
Digital Millennium Copyright Act, this is
a. a violation of copyright law.
b. prohibited but not a violation of copyright law.
c. a “fair use” exception to the provisions of the act.
d. permitted for reconsideration every three years.
11. Stefano transfers copyrighted music recordings, without the copyright owners’
authorization, to his friends. This is
a. copyright infringement.
b. a license.
c. a safe harbor.
d. none of the choices.
12. Sly includes in his song “Sneaky” a few seconds of Wily’s copyrighted sound
recording “Wits” without permission. Some federal courts have found that such
digital sampling is
a. a violation of copyright law.
b. a “fair use” exception to the provisions of the act.
c. not a “fair use” exception to the provisions of the act.
d. all of the choices.
13. OntheWeb Company is an Internet service provider. OntheWeb’s customer
Phoebe commits copyright infringement. OntheWeb is not liable for Phoebe’s
activity
a. unless OntheWeb is aware of Phoebe’s violation.
b. unless OntheWeb is not aware of Phoebe’s violation.
c. unless OntheWeb shuts down Phoebe after learning of the violation.
d. under any circumstances.
14. Sales & Revenue, Inc., discovers that defamatory statements about its policies
and products are being posted in an online forum. TransWeb Inc., the Internet
service provider whose users are posting the messages, refuses to disclose
the identity of the person or persons responsible. Sales & Revenue files a suit
against the anonymous users. The plaintiff can obtain from TransWeb the
identity of the persons responsible for the defamatory messages by
a. using the authority of the court.
b. gaining unauthorized access to TransWeb’s servers.
c. deceiving TransWeb into revealing the posters’ identities.
d. no legal or illegal means.
15. Omni Corporation provides cell phones, laptops, and tablets for its employees
to use “in the ordinary course of its business.” Omni intercepts the employees’
business communications made on these devices. This is
a. a violation of the rights of Omni’s employees.
b. a matter for which Omni must obtain its employees’ consent.
c. a subject for dispute resolution by the communications providers that
Omni uses.
d. excluded from the coverage of the Electronic Communications Privacy
Act.
16. Discount Retail Corporation’s social media policy directs its employees to
“avoid negative public comments about your company.” Elin is an employee of
Discount Retail. When Elin criticizes fellow employees online, Discount Retail
fires her. Elin then files a suit against the employer, seeking reinstatement. The
court will most likely
a. award Elin reinstatement.
b. uphold Discount Retail’s right to terminate Elin.
c. order the parties to submit to online dispute resolution.
d. refer the issue to a higher court.
17. April and other employees of Bodegas & Bistros Inc. (2B) maintain a password–
protected social media page to “vent about work.” When 2B learns of the page,
the company intimidates April into revealing the password, and after reviewing
the posts, fires her and the other participants. Most likely, this is
a. a violation of the Stored Communications Act.
b. within 2B’s rights as an employer.
c. a subject for dispute resolution by the communications providers that the
employees’ page uses.
d. a “business–extension exception” under the Electronic Communications
Privacy Act.
18. Paige applies to work for Quibbling & Company. Reece applies for admittance
to State University. As part of their applications, Paige and Reece are asked to
divulge their social media passwords. Legislation that protects individuals from
having to disclose their social media passwords has been enacted in
a. no states.
b. most states but not by the federal government.
c. all states and by the federal government.
d. four states.
19. Emily and other users of Facebook and other social networking sites post
messages, images, and other materials on these sites. Social media posts are
routinely included in discovery in litigation to
a. establish a person’s intent.
b. establish what a person knew at a particular time.
c. reduce damages awards.
d. all of the choices.
20. Interactive Entertainment Corporation markets its products online. Through the
use of cookies, Interactive Entertainment and other online marketers can
a. track individuals’ Web browsing activities.
CHAPTER 15: INTERNET LAW, SOCIAL MEDIA, AND PRIVACY 11
b. gain access to competitors’ servers.
c. “sweet talk” consumers into buying certain products.
d. attack competitors’ Web sites.
ESSAY QUESTIONS
1. Ralph founds Signify Inc. to make and sell products bearing the names of Tau
Kappa Epsilon (TKE) and other fraternities and sororities. Among other venues,
Signify sells its products online through Web sites that incorporate the
fraternities’ and sororities’ names and abbreviations into the URLs—for
example, “tkestuff.com”—without their permission. On what basis might the
fraternities and sororities maintain a successful suit against Ralph and Signify?
How might this dispute have been avoided?
2. Lori claims that she suffered injuries in an auto accident with an uninsured
vehicle. When her insurer Miserly Insurance Company does not pay her claim,
she files a suit against Miserly for breach of contract. The insurer files a motion
to compel Lori to comply with a discovery request for everything that she has
posted on Facebook, Twitter, and other social media sites since the accident.
Why would the insurer want to obtain such material? What might Lori argue in
opposition to the motion? Should the court grant the defendant’s request?
Discuss.