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CHAPTER FIVE
ETHICAL AND LEGAL ISSUES
Multiple Choice
1. Which of the following is not true in relation to law?
a. law is directed toward the behavior of individuals or small groups, as opposed to
entire populations
b. law attempts to be consistent in time and place
c. making law is often slow and complex
d. law is an expression of values
2. The central focus of ________ is the analysis and description of what is right and wrong
and how we judge the difference.
a. law
b. ethics
c. self-regulation
d. privacy
3. Which of the following is an ethical issue currently confronting those who work in
electronic environments?
a. intellectual property
b. the role of privacy
c. freedom of expression
d. all of the above
4. Favor for the model of self-regulation is supported by all of the following points except
________.
a. the private sector’s speed in resolving problems within its area of expertise
b. the often contradictory and confusing nature of law
c. the motivation to voluntary compliance is compelled by greater consumer confidence
d. the insufficiently compelling incentives
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5. The concept of privacy encompasses ________.
a. ethical aspects
b. legal aspects
c. both of the above
d. neither of the above
6. The general attributes of privacy fall into each of the following categories except the
________.
a. seclusion theory
b. autonomy model
c. access-control viewpoint
d. vacuum model
7. What purpose(s) do digital cookies serve?
a. recalling stored sales information
b. collecting user data, such as name, addresses and phone numbers
c. creating/updating features such as virtual shopping baskets
d. all of the above
8. Critics of opt out presumptions argue which of the following points?
a. average consumers are often confused by many opt out routines
b. consumers prefer targeted advertising
c. the ability of consumers to opt-out cuts down on the effectiveness of marketing
efforts
d. opt out policies keep marketers from learning anything about consumers
9. Which of the following companies have been subject to criticism regarding their possible
misuse of users’ private information?
a. DoubleClick
b. America Online
c. Facebook
d. All of the above
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10. Which of the following is a ubiquitous application, meaning it is able to function without a
user’s knowledge or control?
a. Java applet
b. Windows
c. E-mail
d. XML
11. Which of the following issues can be addressed by current conventional criminal statutes?
a. workers are extended an expectation of privacy from their employers
b. privacy of all American citizens is assured by federal law
c. sanctions against the misuse of consumer data
d. right of users to opt-out of data submission
12. Traditionally, the law has used _______ to define ownership and protect intellectual
property rights?
a. copyrights
b. patents
c. trademarks
d. all of the above
13. Thus far, ________ have been established as the primary means of protecting most of
content on the Internet.
a. copyrights
b. patents
c. trademarks
d. licenses
14. According to trademark law, a certain redundancy is permitted as long as there is enough
dissimilarity in which of the following factors?
a. type of business
b. product name
c. language in brand promotions
d. all of the above
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15. ________ allow a buyer to use a company’s product, but with restrictions on the ability to
duplicate or distribute it.
a. Copyrights
b. Patents
c. Trademarks
d. Licenses
16. All of the following can be defined as trade secrets except ________.
a. formulas
b. facts
c. market data
d. algorithms
17. Which of the following is not a widely held criticism of spam?
a. it places burdens on network resources
b. it reduces the costs of marketing to target consumers
c. it is an unwanted intrusion for receivers
d. it is often derived from mailing lists not intended to be used for mass solicitation
18. What is a legal method of protecting children from exposure to inappropriate, obscene, or
indecent material online?
a. filtering models
b. censorship of the entire Internet
c. the Computer Decency Act of 1996
d. all of the above
19. Jurisdiction ________.
a. is a legal term that describes the authority of a court over individuals, groups, or firms
b. has traditionally been based upon physical presence/location
c. is unlikely to be exercised within the geographic boundaries of other nations or states
d. all of the above
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20. Which of the following is not a possible sanction for fraudulent conduct?
a. forfeiture of property
b. lifetime bans on Internet commerce
c. civil judgments
d. consumer education
True/False
21. The study of ethics has been in existence for over 2,500 years.
a. True
b. False
22. If individuals copy, share, or distribute computer software without having purchased it
under a licensed, then they may be supporting software piracy.
a. True
b. False
23. There is currently no law regulating consumers’ right to opt-out of unwanted data
collection.
a. True
b. False
24. The issue of data collection is the only problem within the context of online privacy.
a. True
b. False
25. Cyber squatting refers to practices whereby one party registers domain names belonging
to or resembling the trade names of others.
a. True
b. False
26. Only registered trademarks are protected under the rules outlined in the US Lanham Act.
a. True
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27. Metatags can be used to protect against one’s own or cyber squat against another’s
intellectual property, product, or trade name.
a. True
b. False
28. Shrinkwrap, clickwrap, and break-the-seal represent methods of corporate attempts to
communicate software licensing obligations to consumers.
a. True
b. False
29. The mass distribution of unsolicited electronic mail is often referred to as spam.
a. True
b. False
30. The use of email or Web sites to impersonate individuals or corporations is known as
spidering.
a. True
b. False
31. According to the text, privacy issues have been a subject of close international attention.
a. True
b. False
32. The Federal Economic Espionage Act of 1996 was enacted, in part, to prevent and
prosecute against foreign distribution of corporate trade secrets.
a. True
b. False
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Essay Questions
33. What is the distinction between law and ethics?
34. What are the arguments for and against self-regulation? Which position holds more
validity in your opinion?
35. The issue of privacy can be broken down into three general areas. Identify and define
these areas.
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36. What are the arguments for and against the mass distribution of unsolicited email?
Support one of these viewpoints using evidence from your own use of email.
37. What are some ways for consumers to protect themselves from fraud? Your answer
should include a definition of fraud and a specific Web site useful in protecting
consumers.
38. What are the norms used by the FTC that represent the minimum requirements essential
to the ethical use of consumer information?
39. What are some examples of trade secrets that could be distributed illegally according to
the US Economic Espionage Act of 1996?