CHAPTER 23 – CYBERLAW
TRUE/FALSE
1. The Internet was started in the 1960s as a project to link military contractors and universities. The
World Wide Web was created in 1991 as a subnetwork of the Internet.
2. Spam is illegal per se.
3. Jorgeson Co., on its website, promised the company would not give private identifying information to
third parties without the customer’s consent, but then gave out such information. This practice violates
Section 5 of the FTC Act.
4. The federal government has preempted the field of online privacy, so states may not pass their own
online privacy statutes.
5. When you surf the Internet, information, much of which is anonymous, is collected about you.
6. Rachel works for the Internal Revenue Service, but keeps some personal information on her computer
at work. The Fourth Amendment to the Constitution, prohibiting unreasonable searches and seizures,
does not apply to the government’s right to obtain personal information on her computer.
7. If a program on your computer monitors your activities without your permission, you will be able to
get protection through state legislation which makes spyware illegal in all 50 states.
8. Consumers have been active in requesting government regulation of web data collection to protect
their privacy.
9. It is legal for websites to sell source code for viruses.
10. The Electronic Communications Privacy Act is a federal statute regulating e-mail.
11. The Patriot Act requires Internet Service Providers to monitor messages to and from its members to
identify terrorist threats.
12. Bidding on one’s own goods at an online auction may subject the bidder to liability under anti-fraud
statutes as well as liability under state statutes explicitly prohibiting shilling.
13. The European Union e-Privacy Directive requires countries outside of Europe to assure adequate
privacy protection if they interact with European customers.
14. The European Union’s e–Privacy Directive requires websites to provide an “opt–out” option for sites
that use tracking tools.
15. The United States of America v. Angevine case held that the professor had no reasonable expectation of
privacy in his office computer.
MULTIPLE CHOICE
1. Burns Medicine Shop developed a website where customers could ask the pharmacists questions and
could refill prescriptions online. What statute requires Burns to have and disclose a privacy policy to
anyone using the website?
a.
The FTC Act.
b.
The Electronic Communications Privacy Act.
c.
The Gramm-Leach-Bliley Privacy Act.
d.
No statutes presently require websites to have or disclose a privacy policy.
2. You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys. The next
time you log on, your screen has a banner ad for Dallas Cowboy hats and shirts. This banner ad is most
likely the result of:
a.
a tracking tool
b.
a coincidence.
c.
the Internet crime of theft of private information.
d.
encryption software.
3. The Electronic Communications Privacy Act of 1986 applies to:
a.
e-mail.
b.
transmissions from pagers.
c.
calls and texts from cell phones.
d.
all of the above.
4. The Computer Fraud and Abuse Act prohibits all but which of the following?
a.
Computer espionage.
b.
Sending spam.
c.
Negligent damage to a computer attached to the Internet.
d.
Trafficking in computer passwords.
5. The case of Carafano v. Metrosplash.com, Inc. held:
a.
the Fourth Amendment applies to computers.
b.
Congress, in enacting the Communications Decency Act, intended that ISPs should not be
held liable for information provided by someone else.
c.
Congress had weighed free speech interests with protection of the public from offensive or
obscene materials and determined that protection of the public was more important in the
Internet setting.
d.
Matchmaker, because it had provided the questionnaires for collecting information from
its users, must be considered an “information content provider” under the
Communications Decency Act, and it is therefore liable under the Act.
6. The CAN-SPAM Act:
a.
applies to virtually all promotional e-mails, whether or not the sender has a pre-existing
relationship with the recipient.
b.
provides unavoidable requirements for senders of promotional e-mails.
c.
requires recipients of unsolicited, pornographic e-mails to notify the Justice Department.
d.
requires senders of promotional e-mails to provide a valid return address, which may be a
post office box or a specific physical location.
7. The Children’s Online Privacy Protection Act prohibits Internet operators from collecting information
from children under what age without parental permission?
a.
18.
b.
16.
c.
13.
d.
10.
8. Sherry, a 12-year-old, visited a website that wanted to know her family size, her parents’ educational
level, and her weekly allowance. The site also asked Sherry’s name, mailing and e-mail addresses, and
age.
a.
Under COPPA, the website must disclose how it will use the information it acquires from
Sherry.
b.
COPPA prohibits the Internet operator from collecting such information without her
parents’ permission.
c.
COPPA does not apply to Sherry’s situation since she is over the age limit for those
protected by the statute.
d.
Both a and b.
9. The Children’s Online Privacy Protection Act:
a.
deals only with the collection of data that will be disclosed to children.
b.
deals only with collecting, from children, information that will be disclosed publicly.
c.
regulates the activities of Internet operators.
d.
is enforced by the EEOC.
10. Tom receives an e-mail from someone alleging to be a Nigerian government official who has stolen
money from the government. He needs some place safe to keep the money for a short time. The
official promises that, if Tom lets his bank account be used for this purpose, Tom will be allowed to
keep a percentage of the stolen money. Tom gives in to the temptation and provides his account
information. Instead of receiving money, Tom loses everything he had in the account to the scammer.
In this situation:
a.
prosecution can be under state law.
b.
prosecution can be under the Computer Fraud and Abuse Act.
c.
a civil action can be brought under Section 5 of the FTC Act.
d.
All of the above.
11. The Identity Theft and Assumption Deterrence Act of 1998 does all but which of the following:
a.
prohibits the use of false identification to commit fraud.
b.
limits liability on a stolen credit card to $50.
c.
permits a victim to seek restitution in court.
d.
It does all of the above.
12. Rob works for a federal governmental agency. No policy statements have been reported to the
employees regarding their privacy rights or regarding their use of workplace computers for personal
business. Rob’s supervisor has reason to suspect that Rob has used his workplace computer to order an
illegal substance. Which of the following is true?
a.
Rob’s employer may search Rob’s computer at any time since it was provided by the
employer.
b.
Even if Rob’s employer tries to search Rob’s computer, if Rob has deleted any
incriminating information, the employer will be able to find nothing on his computer to
prove Rob was engaged in illegal activity.
c.
The Fourth Amendment prohibits unreasonable searches and seizures by the government,
but this amendment does not apply to computers.
d.
If Rob has a legitimate expectation of privacy in the information on his computer, his
employer would have to obtain a search warrant in order to conduct a search of the
computer.
13. Which of the following protects e-mail messages from unauthorized interception?
a.
The Fourth Amendment.
b.
The GLB Privacy Act of 1999.
c.
The Electronic Communications Privacy Act.
d.
COPPA.
14. The privacy of e-mail is regulated by:
a.
the federal ECPA.
b.
spyware.
c.
both a and b.
d.
neither a nor b. There is currently no regulation of e-mail privacy.
15. The Electronic Communications Privacy Act covers:
a.
e-mail communications.
b.
transmissions from cellular phones.
c.
transmissions from pagers.
d.
All of the above.
16. Under the Electronic Communications Privacy Act:
a.
violators are subject to both criminal and civil penalties.
b.
violators may be subject to civil, but not criminal, penalties.
c.
only the unauthorized disclosure of e-mail messages constitutes a violation.
d.
only the unauthorized interception of e-mail messages by the government or an ISP
constitutes a violation.
17. Which of the following is NOT true under the Electronic Communications Privacy Act?
a.
An intended recipient of an e-mail has the right to disclose it to third persons.
b.
ISPs are prohibited from disclosing the content of electronic messages to anyone other
than the addressee, even if the disclosure is necessary for the performance of the ISP’s
service.
c.
An employer has the right to monitor workers’ e-mail if the monitoring occurs in the
ordinary course of business or the employer provides the e-mail system.
d.
To access e-mail messages that have been stored for 180 days or less, the government
must first obtain a search warrant.
18. You receive an e-mail telling you that your bank’s website is undergoing some security updates and
you need to log in to update your account information. Conveniently, there is a link in the e-mail
allowing you to easily log in. Most likely this is an example of:
a.
hacking
b.
phishing
c.
hunting
d.
shilling
19. “Hacking” is:
a.
gaining unauthorized access to a computer system.
b.
a major crime.
c.
illegal under the federal Computer Fraud and Abuse Act, which applies to any computer
attached to the Internet.
d.
All of the above are correct.
20. MajorLine offered travel packages, including airfare and hotel accommodations, at a discounted price
on their website. However, after Jason charged MajorLine’s fees to his credit card, he did not receive
the promised airline tickets or the coupons for a reduced hotel rate. He found that other customers had
been similarly defrauded. MajorLine:
a.
can be prosecuted under state law.
b.
can be prosecuted under the Computer Fraud and Abuse Act.
c.
Both a and b.
d.
cannot be prosecuted because fraud over the Internet is not yet defined as a crime in any
statutes.
21. Online auctions:
a.
are the major source of consumer complaints about online fraud.
b.
involve approximately $1 million worth of goods annually.
c.
allow people to bid on their own goods.
d.
allow owners of goods to cross-bid with a group of other sellers.
22. After Ashley was denied credit for a new car, she checked her credit report with Equifax. The report
showed that several credit cards had been issued to her recently, and they had large, unpaid balances.
Ashley had not applied for or received these cards. She found out that someone had stolen personal
information she had entered onto her computer and used the information to fraudulently obtain the
credit cards. Ashley:
a.
is a victim of identity theft.
b.
is protected under the Identity Theft and Assumption Deterrence Act.
c.
can seek restitution in court.
d.
All of the above.
23. Unsolicited commercial e-mail (UCE) or unsolicited bulk e-mail (UBE) messages:
a.
are commonly known as “cookies.”
b.
constitute about 90 percent of all e-mail.
c.
are estimated to be fraudulent either in content or packaging in approximately one-fourth
of all cases.
d.
although annoying, do lower the cost of connecting to the Internet.
24. Identity theft:
a.
is a relatively new crime that was created through use of the Internet.
b.
affects about 8 million American victims each year.
c.
has slight impact on the victim since consumer law protects owners of credit cards and
limits their loss to $50 if they promptly report the loss of their card.
d.
is now addressed by only state statutes.
25. Lois receives an e-mail asking her to update her personal information on a website that is an illegal
imitation of a legitimate site. This practice:
a.
is a crime called phishing.
b.
is a tort called information theft.
c.
is a breach of contract action known as shilling.
d.
may be prosecuted under the GLB Privacy Act.
ESSAY
1. Stuart is vying for a promotion, but faces competition from a co-worker, Brenda. Without
authorization, Stuart accesses stored company records and discovers an unfavorable e-mail message
Brenda had written about the company. Stuart sends the message to his supervisor in hopes of keeping
Brenda from getting the promotion. Discuss whether Stuart has violated any statute and, if so, what
sanctions he may face.
2. Daniel went onto an Internet message board and found that his ex-wife, Faye, had posted a message
calling him a fat, insensitive jerk who only cared about watching sports on TV. Does Daniel have any
protection against Faye’s making such statements to a potentially large number of readers, some of
whom may know Daniel and some of whom may not?
ANS:
3. Discuss common abuses that occur with auctions on the Internet and how these abuses are being
addressed.
4. Maria, who lives in the United States, gains unauthorized access to a bank’s computer system and
steals financial information about customers. Of what is Maria guilty, and under what statute(s) could
she be prosecuted?
5. Explain the difference between an ISP and a Web host, and discuss whether they are treated alike
under the Communications Decency Act (CDA).