Saudi Electronic UniversityECOM-101

ECOM-101

E-commerce 2013, 9e

Chapter 8 Ethical, Social, and Political Issues in E-commerce

1)Liability is a feature of political systems in which a body of law is in place that permits individuals to recover damages done to them by other actors, systems, or organizations.

2. The principle of responsibility means that individuals, organizations, and societies should be held accountable to others for the consequences of their actions.

3. The ethical principle of Universalism states that if an action is not right for all situations, then it is not right for any situation.

4. Deep packet inspection uses software installed on client computers to collect and analyze detailed information on page content viewed by users.

5. Most adult social network participants do not have any expectation of personal privacy when using a social network.

6. The opt-in model for informed consent requires an affirmative action by the consumer before a company can collect and use information.

7. Thus far, the most important online privacy legislation that has been directly influenced by the Federal Trade Commission's FIP guidelines is the Children's Online Privacy Protection Act (COPPA).

8. The European Data Protection Directive prohibits the transfer of PII to organizations or countries that do not have similar privacy protection policies.

9. The FTC's privacy approach is now focused on targeting practices that are likely to cause harm or unwarranted intrusion into consumers' daily lives.

10. Copyright protection protects against others copying the underlying ideas in a work.

11. It is not necessarily illegal to use someone else's trademark in a metatag.

12. Net neutrality refers to Internet backbone owners treating all Internet traffic equally.

13. The Children's Internet Protection Act (CIPA) requires schools and libraries in the United States to install technology protection measures in an effort to shield children from pornography.

14. The Unlawful Internet Gambling Enforcement Act has eliminated all online gambling in the United States.

15. Google defends its Library Project on the grounds of fair use.

16. Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying?
    1. richness
    2. interactivity
    3. social technology
    4. ubiquity

17. Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products?
    1. richness
    2. interactivity
    3. information density
    4. global reach

18. In Western culture, the basic principles shared by ethical schools of thought are:
    1. information rights, property rights, and public safety and welfare.
    2. responsibility, liability, and accountability.
    3. ubiquity, global reach, and privacy.
    4. the Golden Rule and Universalism.

19. What is the first step in analyzing an ethical dilemma?
    1. Define the conflict or dilemma and identify the higher-order values involved.
    2. Identify the potential consequences of your opinions.
    3. Identify the options you can reasonably take.
    4. Identify and describe the facts.

20. Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society?
    1. the Golden Rule
    2. Universalism
    3. the Collective Utilitarian principle
    4. the Social Contract rule

21. Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision?
    1. the Golden Rule
    2. Universalism

1. 3. the Collective Utilitarian principle
   4. the Social Contract rule

22. Which ethical principle asks you to assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise?
    1. the Golden Rule
    2. the Slippery Slope
    3. the Social Contract rule
    4. No Free Lunch

23. Which ethical principle states that if an action cannot be taken repeatedly, then it is not right to take at all?
    1. Universalism
    2. the Slippery Slope
    3. the Social Contract rule
    4. the Golden Rule

24. Which ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society?
    1. the Golden Rule
    2. Risk Aversion
    3. the Slippery Slope
    4. the Social Contract rule

25. Which ethical principle tells you that it is wise to assume perfect information markets?
    1. the Golden Rule
    2. the New York Times test
    3. the Social Contract rule
    4. the Collective Utilitarian principle

26. Which ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost?
    1. the Slippery Slope
    2. Risk Aversion
    3. No Free Lunch
    4. the Collective Utilitarian principle

27. Which of the following basic ethical concepts plays an important role in defining privacy?
    1. responsibility
    2. accountability
    3. liability
    4. due process

28.                        is collected data that can be used to identify and locate an individual.
    1. A personal profile
    2. P3P
    3. Anonymous information
    4. PII

29. Which of the following tools can companies use to track user statements and views on newsgroups, chat groups, and other public forums?
    1. cookies
    2. digital wallets
    3. search engines
    4. shopping carts

30. Which of the following can be used to record all keyboard activity of a user?
    1. shopping carts
    2. trusted computing environments
    3. spyware

1. 4. DRM

31. Which of the following is not one of the issues complicating the taxation of e-commerce sales?
    1. Taxes raised are used for different government purposes.
    2. Sales taxes and policies vary by state and country.
    3. Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer.
    4. Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.

32. Google's Gmail advertising has raised concerns about which of the following issues?
    1. privacy
    2. copyright
    3. trademark
    4. patents

33. Which of the following statements about industry self-regulation regarding privacy is not

true?

1. 1. OPA members are required to implement the OPA's privacy guidelines.
   2. The primary focus of industry efforts has been the use of online "seals" that attest to the site's policies.
   3. Industry efforts have not so far succeeded in reducing American fears of privacy invasion during online transactions.
   4. The NAI's privacy policies were developed without regard to the FTC principles.

34. The placing of a cookie on a user's hard drive by one site that is then used by another site to sell that user related products without the knowledge of the user is:
    1. legal in the United States but illegal in Europe.
    2. illegal in the United States but legal in Europe.
    3. legal in both the United States and Europe.
    4. illegal in both the United States and Europe.

35. Which of the following requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records?
    1. Freedom of Information Act
    2. Gramm-Leach-Bliley Act
    3. COPPA
    4. HIPAA

36. A social consequence of the richness of Internet information is:
    1. an increase in shallowness.
    2. an increase in the ease of creating misleading information.
    3. very persuasive messages might reduce the need for multiple independent sources of information.
    4. an increase in vulnerability to hacking attacks.

37. Which of the following is a core Fair Information Practices (FIP) principle?
    1. Choice/Consent
    2. Access/Participation
    3. Security
    4. Enforcement

38. Which of the FTC's Fair Information Practices (FIP) principles requires identification of the collector of data?
    1. Notice/Awareness
    2. Choice/Consent
    3. Access/Participation
    4. Security

39. Which of the FTC's Fair Information Practices (FIP) principles requires opt-in or opt-out policies to be in place?
    1. Notice/Awareness
    2. Choice/Consent
    3. Access/Participation
    4. Security

40. What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)?
    1. Require firms to have consumers affirmatively opt-in before PII is collected.
    2. Require firms to allow consumers to opt-out before PII is collected.
    3. Make collection of PII illegal.
    4. Require robust notice only before PII is collected.

41. "Do Not Track" falls under which of the following principles in the FTC's new privacy framework?
    1. Privacy by Design
    2. Simplified Choice
    3. Greater Transparency
    4. Scope

42. Which of the following technologies allows you to send e-mail without a trace?
    1. anonymous surfing
    2. P3P
    3. anonymous remailers
    4. public key encryption

43. All of the following are types of tiered, or differential, pricing plans except:
    1. time-managed.
    2. metered billing.
    3. highway pricing.
    4. private industry self-regulatory group.

44. What is the major reason that the Internet has such potential for destroying traditional conceptions and implementations of intellectual property law?
    1. the ability to make perfect copies of digital works at little cost
    2. the anonymous nature of the Internet
    3. the support for instant peer-to-peer communication
    4. the use of standards for file formats

45. Which of the following protects original forms of expression in a tangible medium?
    1. trade secret law
    2. copyright law
    3. patent law
    4. trademark law

46. How long does copyright protection extend for corporate-owned works?
    1. 25 years
    2. 50 years
    3. 75 years
    4. 95 years

47. Which of the following situations would not qualify for the fair use exception to United States copyright law?
    1. A professor clips a newspaper article just before class and distributes copies of it to his class.
    2. A journalist quotes a paragraph from a book in a review of the book.
    3. A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site.
    4. Google posts thumbnail images of books in the Google Book Search Project.

48. All of the following are factors that will be considered in determining whether use of copyrighted material is "fair use" except the:
    1. nature of the work used.
    2. amount of the work used.
    3. market effect of the use.
    4. free availability of the work on the Web.

49. Downloading music tracks owned by record companies without paying for them is an example of a violation of:
    1. patent law.
    2. copyright law.
    3. trademark law.
    4. privacy law.

50. All of the following are possible penalties for violating the Digital Millennium Copyright Act (DMCA) except:
    1. ten years imprisonment for a first offense.
    2. fines up to $500,000 for a first offense.
    3. fines up to $1 million for a repeat offense.
    4. restitution to the injured parties for any losses due to infringement.

51. All of the following statements about the Digital Millennium Copyright Act (DMCA) are true except:
    1. The DMCA makes it illegal to circumvent technological measures to protect works.
    2. The DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement.
    3. The DMCA requires search engines to block access to infringing sites.
    4. The DMCA allows libraries to make digital copies of works for internal use only.

52. Which of the following allows someone to obtain an exclusive monopoly on the ideas behind an invention for 20 years?
    1. copyright law
    2. trade secret law
    3. patent law
    4. trademark law

53. All of the following statements about patents are true except:
    1. It is more difficult to obtain a copyright than it is to obtain a patent.
    2. The four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods.
    3. Computer programs can be patented.
    4. In order to be patented, an invention must be nonobvious.

54. Which case was instrumental in paving the way for Internet business methods patents?
    1. Brown Bag v. Symantec
    2. State Street Bank & Trust Co. v. Signature Financial Group. Inc.
    3. Ford Motor Co. v. Lapertosa
    4. Ticketmaster Corp. v. Tickets.com

55. Amazon has a patent on:
    1. download-based sales.
    2. display of third-party advertisements in floating windows.
    3. one-click purchasing.
    4. hyperlinks.

56. Disputes over federal trademarks involve establishing:
    1. underlying ideas.
    2. intent.
    3. piracy.
    4. infringement.

57. Registering a domain name similar or identical to trademarks of others to extort profits from legitimate holders is an example of:
    1. cybersquatting.
    2. cyberpiracy.
    3. framing.
    4. metatagging.

58. All of the following are data elements that are often gathered by e-commerce sites except:
    1. family member identities.
    2. photograph.
    3. location.
    4. address.

59. Registering a domain name similar or identical to trademarks of others to divert Web traffic to their own sites is an example of:
    1. cybersquatting.
    2. cyberpiracy.
    3. framing.
    4. metatagging.

60. Registering the domain name google.com with the intent to divert Web traffic from people misspelling google.com is an example of:
    1. cybersquatting.
    2. typosquatting.
    3. metatagging.

1. 4. linking.

61. Critics have pointed out that the Chrome browser's Suggest button, which suggests queries based on search terms entered by the user, is in fact, a type of:
    1. worm.
    2. PUP.
    3. key logger.
    4. malware.

62. The display of a third-party's Web site or page within your own Web site is called:
    1. cybersquatting.
    2. metatagging.
    3. framing.
    4. deep linking.

63. A 2012 TRUSTe/Harris Interactive survey found all of the following except:
    1. Targeted advertising makes the vast majority of those surveyed uncomfortable.
    2. More than 75% of those surveyed do not allow companies to share their personal information with a third party.
    3. Over 90% of those surveyed think that privacy is an important issue.
    4. More than half of those surveyed said online privacy is really important to them.

64. Over which of the following does ICANN have authority?
    1. technical infrastructure
    2. domain name system
    3. public policy issues
    4. standards

65. Which of the following authorizes the creation of a second-level domain on the Internet where all Web sites have to declare they contain no material harmful to children?
    1. Domain Names Act
    2. Dot Kids Act
    3. Children's Online Protection Act
    4. Children's Internet Protection Act

66. The                         of Internet and Web technology can result in work and shopping invading family life.

67. The four major dimensions of e-commerce ethical, social, and political issues are public safety and welfare; property rights; information rights; and                                                                     .

68. An ISP basic service plan, allowing 300GB of data transfer per month, with additional data transfer available for $15 for 50GB, is an example of a tiered plan called                                                                                 .

69.                        information is demographic and behavioral information that does not include any personal identifiers.

70.                        involves the creation of digital images that characterize online individual and group behavior.

71. Companies that buy up broadly worded patents on a speculative basis and then use them to threaten companies that are purportedly violating the patent are often referred to as patent

                     .

72.                        profiles identify people as belonging to highly specific and targeted groups.

73. A(n)                         is a private self-regulating policy and enforcement mechanism that meets the objectives of government regulators and legislation, but does not involve government regulation or enforcement.

74. The main stakeholders arguing against net neutrality are                             .

75.                        copyright infringement lawsuits are concerned with the distinction between an idea and its expression.

76. The doctrine of                          permits teachers and writers to use copyrighted materials without permission under certain circumstances.

77. In trademark law,                          is defined as any behavior that would weaken the connection between the trademark and the product.

78. Single words, pictures, shapes, packaging, and colors used to identify and distinguish goods are protected under                                                                   law.