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Electronic Commerce 12th Edition Gary Schneider Test Bank
Electronic Commerce 12th Edition Gary Schneider Test Bank
TRUEFALSE
1. Any business that uses the Web becomes an international business instantly.
(A) True
(B) False
Answer : (A)
2. Businesses that operate on the Web must comply with the same laws and regulations that govern
the operations of all businesses.
(A) True
(B) False
Answer : (A)
3. In the physical world, geographic boundaries rarely coincide with legal and cultural boundaries.
(A) True
(B) False
Answer : (B)
4. Physical boundaries are a convenient and effective way to announce the ending of one legal or
cultural system and the beginning of another.
(A) True
(B) False
Answer : (A)
5. People receive constructive notice that they have become subject to new laws and cultural norms
when they cross an international border, even if they are not specifically warned of the changed laws
and norms by a sign or a border guard's statement.
(A) True
(B) False
Answer : (A)
6. A business cannot commit a tortious act by simply selling a product that causes harm to a buyer.
(A) True
(B) False
Answer : (B)
7. Non-U.S. corporations and individuals cannot be sued in U.S. courts if they conduct business or
commit tortious acts in the United States.
(A) True
(B) False
Answer : (B)
(A) True
(B) False
Answer : (A)
9. When a seller advertises goods for sale on a Web site, that seller is making an offer to potential
buyers.
(A) True
(B) False
Answer : (B)
10. A click-wrap acceptance occurs when a Web site user agrees to that site's end-user license
agreements or its terms and conditions by clicking a button on the Web site.
(A) True
(B) False
Answer : (A)
11. In general, contracts are invalid if they are not in writing or signed.
(A) True
(B) False
Answer : (B)
12. The Statute of Frauds varies widely from state to state with regard to signed writings.
(A) True
(B) False
Answer : (B)
13. Any contract for the sale of goods includes implied warranties.
(A) True
(B) False
Answer : (A)
14. Digital signatures are not legally valid on contracts in most countries.
(A) True
(B) False
Answer : (B)
15. If an idea cannot be separated from its expression in a work, that work cannot be copyrighted.
(A) True
(B) False
Answer : (A)
16. Fair use of a copyrighted work does not allows copying it in order to criticize the content.
(A) True
(B) False
Answer : (B)
17. Creations that can be copyrighted include virtually all forms of artistic or intellectual expression.
(A) True
(B) False
Answer : (A)
18. Fictional characters cannot be trademarked.
(A) True
(B) False
Answer : (B)
19. In general, trademark protection prevents another firm from using the same or a similar name,
logo, or other identifying characteristics in a way that would cause confusion in the minds of
potential buyers.
(A) True
(B) False
Answer : (A)
20. The first obstacle that law enforcement agencies face when combating online crime is the issue
of jurisdiction.
(A) True
(B) False
Answer : (A)
21. Ethics issues are significant in the area of online privacy because laws have not kept pace with
the growth of the Internet and the Web.
(A) True
(B) False
Answer : (A)
22. Differences in cultures throughout the world have resulted in different expectations about
privacy in electronic commerce.
(A) True
(B) False
Answer : (A)
23. Use taxes are levied by the United States and other countries on certain commodities as they are
imported into the country.
(A) True
(B) False
Answer : (B)
24. The connection between a tax-paying entity and a government is called jurisdiction.
(A) True
(B) False
Answer : (B)
25. Companies that sell through their Web sites establish nexus everywhere their goods are
delivered to customers.
(A) True
(B) False
Answer : (B)
26. Most states' use tax rates are lower than their sales tax rates.
(A) True
(B) False
Answer : (B)
MULTICHOICE
27. _____ mark the range of culture and reach of applicable laws very clearly in the physical world.
Answer : (A)
28. _____ is a form of control over physical space and the people and objects that reside in that
space, and is a defining characteristic of statehood.
(A) Ethics
(B) Potential
(C) Legitimacy
(D) Power
Answer : (D)
29. The ability of a government to exert control over a person or corporation is called _____.
(A) subjugation
(B) jurisdiction
(C) legitimacy
(D) notice
Answer : (B)
30. _____ is a country in which national culture permits the government to exert high levels of
unchecked authority.
(A) Denmark
(B) Norway
(C) Singapore
(D) Sweden
Answer : (C)
31. _____ is the idea that those subject to laws should have some role in formulating them.
(A) Jurisdiction
(B) Administration
(C) Legitimacy
(D) Integrity
Answer : (C)
32. _____ is an expression of the change in rules when a physical boundary is crossed.
(A) Legitimacy
(B) Power
(C) Notice
(D) Offer
Answer : (C)
33. A _____ is an intentional or negligent action taken by a legal entity that causes harm to another
legal entity.
(B) tort
Answer : (B)
Answer : (C)
35. In the United States, federal courts have subject-matter jurisdiction over issues related to _____.
(A) bankruptcy
Answer : (A)
36. A(n) _____ clause is a statement that a contract will be enforced according to the laws of a
particular state that then has personal jurisdiction over the parties who signed the contract
regarding any enforcement issues.
Answer : (A)
37. The details of _____ vary from state to state, but generally create personal jurisdiction over
nonresidents who transact business or commit tortious acts in the state.
Answer : (B)
(A) fraud
(B) misrepresentation
(D) defamation
Answer : (C)
39. A(n) _____ is a commitment with certain terms made to another party.
(A) award
(B) offer
(C) acceptance
(D) consideration
Answer : (B)
40. A(n) _____ is the expression of willingness to take an offer, including all of its stated terms.
(B) tort
(C) acceptance
(D) consideration
Answer : (C)
41. A(n) _____ can be formed by two or more parties that act as if a contract exists, even if no
contract has been written and signed.
Answer : (B)
42. A(n) _____ refers to any symbol executed or adopted for the purpose of authenticating a writing.
(A) stamp
(B) icon
(C) mark
(D) signature
Answer : (D)
43. A _____ is a statement declaring that the seller will not honor some or all implied warranties.
Answer : (C)
44. Disputes that arise when one person has registered a domain name that is an existing trademark
or company name are settled by _____.
45. A digital _____ is a digital code or stream embedded undetectably in a digital image or audio file.
(B) watermark
(C) patent
(D) cookie
Answer : (B)
46. A(n) _____ statement is a statement that is false and that injures the reputation of another person
or company.
(A) defamatory
(C) implied
(D) copyright
Answer : (A)
47. If a defamatory statement injures the reputation of a product or service instead of a person, it is
called _____.
Answer : (C)
48. Using technology to harass, humiliate threaten or embarrass another person is called.
(A) defamation
(B) sexting
(C) cyberbullying
Answer : (C)
49. In a(n) _____ policy approach, a company that collects information does not use the information
for any other purpose unless the customer specifically chooses to allow that use.
(A) opt-out
(B) lock-in
(C) fair-use
(D) opt-in
Answer : (D)
50. If a company undertakes sufficient activities in a particular country, it establishes _____ with that
country and becomes liable for filing tax returns in that country.
(A) jurisdiction
(B) notice
(D) nexus
Answer : (D)
51. A(n) _____ tax is a tax levied by a state on property used in that state that was not purchased in
that state.
(A) property
(B) import
(C) use
(D) sales
Answer : (C)
Answer : (A)
SHORTANSWER
53. State courts have _____ jurisdiction over issues governed by state laws.Answer : subject-matter
54. When federal, state, and local laws address the same issues in different ways lawyers call the
situation a.Answer : conflict of laws
55. Every kind of agreement or exchange between parties, no matter how simple, is a type of
_____.Answer : contract
56. The rules and regulations most of which are intended to limit the Web site owner's liability for
what site visitors might do with information they obtain from the site are referred to as
_____.Answer : terms of service (ToS)
Answer : ToS
Answer : terms of service
57. The issue of _____ can arise when an employee of a company accepts a contract and the company
later asserts that the employee did not have the authority to do so.Answer : authority to bind
58. _____ is a general term that includes all products of the human mind.Answer : Intellectual
property
59. A(n) _____ is a right granted by a government to the author or creator of a literary or artistic
work.Answer : copyright
60. An entity becomes liable for _____ infringement if it is capable of supervising the infringing
activity and obtains a financial benefit from the infringing activity.Answer : vicarious copyright
61. A(n) _____ is an exclusive right granted by the government to an individual to make, use, and sell
an invention.Answer : patent
62. The _____ patent protects a specific set of procedures for conducting a particular business
activity.Answer : business process
64. A(n) _____ is a distinctive mark, device, motto, or implement that a company affixes to the goods
it produces for identification purposes.Answer : trademark
65. The name or part of that name that a business uses to identify itself is called a(n) _____.Answer :
trade name
66. _____ law arises when elected legislative bodies pass laws.Answer : Statutory
67. _____ is the practice of registering a domain name that is the trademark of another person or
company in the hopes that the owner will pay huge amounts of money to acquire the URL.Answer :
Cybersquatting
68. _____ occurs when someone other than a domain name's owner changes the ownership of the
domain name.Answer : Name stealing
69. _____ refers to a legal cause of action in which a court deems some types of statements to be so
negative that injury is assumed.Answer : Per se defamation
70. The _____ publishes regulations and investigates claims of false advertising.Answer : Federal
Trade Commission (FTC)
Answer : FTC
Answer : Federal Trade Commission
71. In the context of online crime, in a(n) _____, the perpetrator offers to share the proceeds of some
large payoff with the victim if the victim will make a "good faith" deposit or provide some partial
funding first.Answer : advance fee fraud
72. In a(n) _____ approach, a company collecting information assumes that a customer does not
object to the company's use of the information unless the customer specifically chooses to deny
permission.Answer : opt-out
73. _____ taxes are levied by states and local governments on the real estate used in a
business.Answer : Property
74. _____ taxes are levied by national, state, and local governments on the net earnings generated by
business activities.Answer : Income
75. _____ taxes, which include sales taxes, use taxes, and excise taxes, are levied on the products or
services that a company sells or uses.Answer : Transaction
76. The _____ is the U.S. government agency charged with administering the country's tax
laws.Answer : Internal Revenue Service (IRS)
Answer : IRS
Answer : Internal Revenue Service
77. _____ laws, directed at large online retailers, are state laws that require online retailers to collect
and remit sales taxes on sales they make in their states, even though the online retailers do not have
nexus with the state.Answer : Amazon
ESSAY
78. Describe a tort and identify the types of tortious acts that can be committed.
Graders Info :
A tort is an intentional or negligent action taken by a legal entity that causes harm to another legal
entity. A business can commit a tortious act by selling a product that causes harm to a buyer. The
tortious act can be a negligent tort, in which the seller unintentionally provides a harmful product,
or it can be an intentional tort, in which the seller knowingly or recklessly causes injury to the buyer.
The most common business-related intentional torts involve defamation, misrepresentation, fraud,
and theft of trade secrets.
79. What is the difference between subject-matter jurisdiction and personal jurisdiction?
Graders Info :
Subject-matter jurisdiction is a court's authority to decide a particular type of dispute. For example,
in the United States, federal courts have subject-matter jurisdiction over issues governed by federal
law (such as bankruptcy, copyright, patent, and federal tax matters), and state courts have subject-
matter jurisdiction over issues governed by state laws (such as professional licensing and state tax
matters). If the parties to a contract are both located in the same state, a state court has subject-
matter jurisdiction over disputes that arise from the terms of that contract.
Personal jurisdiction is, in general, determined by the residence of the parties. A court has personal
jurisdiction over a case if the defendant is a resident of the state in which the court is located. In
such cases, the determination of personal jurisdiction is straightforward. However, an out-of-state
person or corporation can also voluntarily submit to the jurisdiction of a particular state court by
agreeing to do so in writing or by taking certain actions in the state.
Graders Info :
Any contract includes three essential elements: an offer, an acceptance, and consideration. The
contract is formed when one party accepts the offer of another party. An offer is a commitment with
certain terms made to another party, such as a declaration of willingness to buy or sell a product or
service. An offer can be revoked as long as no payment, delivery of service, or other consideration
has been accepted. An acceptance is the expression of willingness to take an offer, including all of its
stated terms. Consideration is the agreed-upon exchange of something valuable, such as money,
property, or future services. When a party accepts an offer based on the exchange of valuable goods
or services, a contract has been created.
81. List the guidelines that acknowledge an organization's responsibility for respecting customer
privacy and the importance of maintaining customers' trust.
Graders Info :
The guidelines for the use of customer data are as follows: 1. Use data collected to provide improved
service or other benefits to the customer.
2. Do not provide customer data to anyone outside your organization without the customer's express
permission.
3. Give customers a description of what data is collected and provide clear explanations about how
the data is used.
4. Give customers the right to have any of their data deleted.
5. Train employees in how to keep customer data safe and secure.
82. Discuss new 2013 rules directed to websites and online services that collect information from
children under 13.
Graders Info :
Post a clear and comprehensive online privacy describing their information practices for personal
information collected online from children; provide direct notice to parent and obtain verifiable
parental consent, with limited exception, before collecting personal information online from
children; give parents the choice of consenting to the operator's collection and internal use of a
children's information, but prohibiting the operator from disclosing that information to third parties
(unless disclosure is integral to the site of service, in which case, this mus be made clear to parents);
provide parents access to their child's personal information to review and /or have the information
deleted; give parents the opportunity to prevent further use or online collection of a child's personal
information; maintain the confidentiality, security, and integrity of information they collect from
children, including by taking reasonable steps to release such information only to parties capable of
maintaining its confidentiality and security
Graders Info :
All countries in the world regulate the import and export of goods across their borders. In many
cases, goods can only be imported into a country if a tariff is paid. A tariff, also called a customs duty
or duty, is a tax levied on products as they enter the country. Countries have many reasons for
imposing tariffs. Goods that are ordered online are subject to tariffs when they cross international
borders. Even products that are delivered online (such as downloaded software) can be subject to
tariffs. Many online shoppers have been surprised when an item they ordered from another country
arrives with a bill from their government for the tariff.