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This Document Contains Chapters 7 to 8 Chapter 07: The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues 1. Any business that uses the Web becomes an international business instantly. a. True b. False Answer: True 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: True 3. In the physical world, geographic boundaries rarely coincide with legal and cultural boundaries. a. True b. False Answer: False 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: True 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: True 6. A business cannot commit a tortious act by simply selling a product that causes harm to a buyer. a. True b. False Answer: False 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: False 8. People enter into contracts on a daily, and often hourly, basis. a. True b. False Answer: True 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: False 10. In general, contracts are invalid if they are not in writing or signed. a. True b. False Answer: False 11. The Statute of Frauds varies widely from state to state with regard to signed writings. a. True b. False Answer: False 12. Any contract for the sale of goods includes implied warranties. a. True b. False Answer: True 13. Digital signatures are not legally valid on contracts in most countries. a. True b. False Answer: False 14. 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: True 15. If an idea cannot be separated from its expression in a work, that work cannot be copyrighted. a. True b. False Answer: True 16. Creations that can be copyrighted include virtually all forms of artistic or intellectual expression. a. True b. False Answer: True 17. Fictional characters cannot be trademarked. a. True b. False Answer: False 18. 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: True 19. The first obstacle that law enforcement agencies face when combating online crime is the issue of jurisdiction. a. True b. False Answer: True 20. 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: True 21. Differences in cultures throughout the world have resulted in different expectations about privacy in electronic commerce. a. True b. False Answer: True 22. 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: False 23. The connection between a tax-paying entity and a government is called jurisdiction. a. True b. False Answer: False 24. Companies that sell through their Web sites establish nexus everywhere their goods are delivered to customers. a. True b. False Answer: False 25. Most states’ use tax rates are lower than their sales tax rates. a. True b. False Answer: False 26. _________ mark the range of culture and reach of applicable laws very clearly in the physical world. a. Territorial borders b. Common laws c. Ethical standards d. Online restrictions Answer: a 27. _________ 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 28. 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 29. _________ 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 30. _________ 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 31. _________ is an expression of the change in rules when a physical boundary is crossed. a. Legitimacy b. Power c. Notice d. Offer Answer: c 32. A _________ is an intentional or negligent action taken by a legal entity that causes harm to another legal entity. a. click-wrap acceptance b. tort c. fair use d. anticipatory repudiation Answer: b 33. _________ is a court's authority to decide a particular type of dispute. a. Territorial jurisdiction b. Personal jurisdiction c. Subject-matter jurisdiction d. Long arm jurisdiction Answer: c 34. In the United States, federal courts have subject-matter jurisdiction over issues related to _________. a. bankruptcy b. state tax matters c. professional licensing d. personal matters Answer: a 35. 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. a. forum selection b. choice of law c. after acquired property d. deadlock provision Answer: a 36. The details of _________ vary from state to state, but generally create personal jurisdiction over non-residents who transact business or commit tortious acts in the state. a. subject-matter jurisdiction b. long-arm statutes c. statewide jurisdiction d. forum selection Answer: b 37. A(n) _________ is a commitment with certain terms made to another party. a. award b. offer c. acceptance d. consideration Answer: b 38. A(n) _________ is the expression of willingness to take an offer, including all of its stated terms. a. judicial comity b. tort c. acceptance d. consideration Answer: c 39. 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. a. voidable contract b. implied contract c. subordinate contract d. virtual contract Answer: b 40. 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 41. A _________ is a statement declaring that the seller will not honor some or all implied warranties. a. defamatory statement b. forum selection clause c. warranty disclaimer d. warranty negation Answer: c 42. Disputes that arise when one person has registered a domain name that is an existing trademark or company name are settled by _________. a. the World Intellectual Property Organization b. common law c. statutory law d. the World Trade Organization Answer: a 43. A _________ is an act in which a seller unintentionally provides a harmful product. a. fraud b. misrepresentation c. negligent tort d. defamation Answer: c 44. A digital _________ is a digital code or stream embedded undetectably in a digital image or audio file. a. validation code b. watermark c. patent d. cookie Answer: b 45. A(n) _________ statement is a statement that is false and that injures the reputation of another person or company. a. defamatory b. warranty disclaimer c. implied d. copyright Answer: a 46. If a defamatory statement injures the reputation of a product or service instead of a person, it is called _________. a. negligent tort b. trademark dilution c. product disparagement d. per se defamation Answer: c 47. 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 48. 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 c. terms of service d. nexus Answer: d 49. 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 50. A(n) _________ is collected by a seller at each stage of a transaction. a. value added tax b. import tariff c. property tax d. use tax Answer: a 51. State courts have _________ jurisdiction over issues governed by state laws. Answer: subject-matter 52. A(n) _________ refers to the issue of determining whether an individual can commit a company to an online contract. Answer: authority to bind 53. 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 54. Every kind of agreement or exchange between parties, no matter how simple, is a type of _________. Answer: contract 55. 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 56. _________ is a general term that includes all products of the human mind. Answer: Intellectual property 57. 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) ToS terms of service 58. A(n) _________ is a right granted by a government to the author or creator of a literary or artistic work. Answer: copyright 59. 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 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 63. A(n) _________ is used to identify services provided. Answer: service mark 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. The _________ publishes regulations and investigates claims of false advertising. Answer: Federal Trade Commission (FTC) FTC Federal Trade Commission 70. _________ taxes are levied by states and local governments on the real estate used in a business. Answer: Property 71. _________ taxes are levied by national, state, and local governments on the net earnings generated by business activities. Answer: Income 72. _________ 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 73. _________ 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 74. The _________ is the U.S. government agency charged with administering the country's tax laws. Answer: Internal Revenue Service (IRS) IRS Internal Revenue Service 75. _________ 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 76. Describe a tort and identify the types of tortious acts that can be committed. Answer: 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. 77. What is the difference between subject-matter jurisdiction and personal jurisdiction? Answer: 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. 78. Explain the three essential elements of a contract. Answer: 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. 79. List the guidelines that acknowledge an organization’s responsibility for respecting customer privacy and the importance of maintaining customers’ trust. Answer: 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. 80. Briefly discuss the application of import tariffs. Answer: 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. Chapter 08: Web Server Hardware and Software 1. The Internet connects many different types of computers that are running different types of operating system software. a. True b. False Answer: True 2. When people use Web browser software to become part of the Web, their computers become Web client computers on a worldwide client/server network. a. True b. False Answer: True 3. The computers that perform the server function usually have more memory and larger, faster disk drives than the client computers they serve. a. True b. False Answer: True 4. The three main elements of a Web server are the hardware, operating system software, and Web server software. a. True b. False Answer: True 5. Platform neutrality was a critical factor in the rapid spread and widespread acceptance of the Web. a. True b. False Answer: True 6. In client-side scripting, changes are generated within the browser using software such as JavaScript. a. True b. False Answer: True 7. In dynamic page-generation technologies, server-side scripts and HTML-tagged text are used independently to create the dynamic Web page. a. True b. False Answer: False 8. Computers that are connected to the Internet and make some of their contents publicly available using the HTTP protocol are called Web servers. a. True b. False Answer: True 9. A two-tier client/server architecture is sufficient for delivering dynamic content and processing transactions. a. True b. False Answer: False 10. A single client request always results in dozens or even hundreds of separate server responses to locate and deliver information. a. True b. False Answer: False 11. The basic Web client/server model is a three-tier model. a. True b. False Answer: False 12. The entity body of a response message returns the HTML page requested by the client machine. a. True b. False Answer: True 13. Software applications that generate information are located in the first tier of n-tier architectures. a. True b. False Answer: False 14. Linux is a closed-source operating system software. a. True b. False Answer: False 15. The two most commonly used Web server programs are Apache HTTP Server and Microsoft Internet Information Server, IIS. a. True b. False Answer: True 16. A black list spam filter cannot be implemented at the individual level. a. True b. False Answer: False 17. The rejected e-mails in a white list spam filter are deleted. a. True b. False Answer: False 18. The challenge-response content-filtering technique uses a black list as the basis for a confirmation procedure. a. True b. False Answer: False 19. With remote server administration software, a Web site administrator can control a Web site from any Internet-connected computer. a. True b. False Answer: True 20. Very small companies can run Web sites on desktop PCs. a. True b. False Answer: True 21. One element that affects overall server performance is the server hardware. a. True b. False Answer: True 22. A drawback of decentralized architecture is that if one of the few servers becomes inoperable, a large portion of the site’s capacity is lost. a. True b. False Answer: False 23. The smaller servers used in the decentralized architecture are more expensive than the large servers used in the centralized approach. a. True b. False Answer: False 24. A centralized architecture spreads failure risk over a large number of servers. a. True b. False Answer: False 25. Few large centralized sites use load-balancing systems, at an additional expense, to assign the workload efficiently. a. True b. False Answer: False 26. In _________, software operates on the browser to change what is displayed on the Web page in response to a user’s actions. a. client-side scripting b. server-side scripting c. basic content filtering d. static content generation Answer: a 27. Customized pages provided by Web servers in response to specific queries from site visitors are called _________. a. dynamic content b. Active Server Pages c. static pages d. unchanged content Answer: a 28. _________ let’s programmers create Web pages that will update asynchronously while the rest of the Web page continues to be displayed in the browser. a. ASP b. CGI c. AJAX d. C++ Answer: c 29. A _________ page is an unchanging page retrieved from a file on a Web server. a. static b. customized c. personalized d. dynamic Answer: a 30. _________ is a standard way of interfacing external applications with Web servers. a. Common Gateway Interface b. Graphical User Interface c. Server-side scripting d. Client-side scripting Answer: a 31. In _________, a program running on a Web server creates a Web page in response to a request for specific information from a Web client. a. client-side scripting b. server-level filtering c. server-side scripting d. client-level filtering Answer: c 32. In a client/server architecture, the _________ contains a command, the name of the target resource, and the protocol name and version number. a. request header b. request line c. entity body d. response header Answer: b 33. In a client/server architecture, an optional _________ is sometimes used to pass bulk information to the server. a. request line b. request message c. entity body d. request header Answer: c 34. A(n) _________ indicates the HTTP version used by the server, the status of the response, and an explanation of the status information. a. response header field b. request header message c. optional entity body d. response header line Answer: d 35. FreeBSD is a(n) _____-based operating system. a. Apple b. UNIX c. Linux d. Windows 2000 Server Answer: b 36. _________ continually conducts surveys to tally the number of Web sites in existence and track which Web server software each uses. a. BBC b. Microsoft c. Net craft d. CNN Answer: c 37. _________ Server has dominated the Web since 1996 because it is free and performs very efficiently. a. Apache HTTP b. Microsoft IIS c. UNIX d. Linux Answer: a 38. A(n) _________ is a program that attaches itself to another program and can cause damage when the host program is activated. a. e-mail filter b. debugging code c. computer virus d. dead link Answer: c 39. A _________ is an unsolicited commercial e-mail. a. spam b. program c. virus d. filter Answer: a 40. A _________ spam filter examines From addresses and compares them to a list of known good sender addresses. a. black list b. full-privilege c. tracert d. white list Answer: d 41. A content-filtering technique where the software that performs the filtering task is placed on individual users’ computers is called _________. a. server-side scripting b. client-side scripting c. client-level filtering d. server-level filtering Answer: c 42. A _________ program sends data packets to every computer on the path between one computer and another and clocks the packets' round-trip times. a. Telnet b. Tracert c. Ping d. Finger Answer: b 43. _________ programs calculate and display the number of hops between computers and the time it takes to traverse the entire one-way path between machines. a. Route-tracing b. Indexing c. Benchmarking d. Link checker Answer: a 44. _________ is a program that allows a person using one computer to access files and run programs on a second computer that is connected to the Internet. a. Telnet b. Ping c. Finger d. Tracert Answer: a 45. The _________ is the part of the TCP/IP rules that defines the formats used to transfer files between TCP/IP-connected computers. a. black list spam filter b. white list spam filter c. File Transfer Protocol d. Microsoft Internet Information Server Answer: c 46. A _________, when clicked, displays an error message rather than a Web page. a. link checker b. computer virus c. filter d. dead link Answer: d 47. A(n) _________ file is a file on a Web server that is not linked to any page. a. lost b. index c. orphan d. independent Answer: c 48. Efforts to reduce the environmental impact of large computing installations are called _________ computing. a. efficient b. green c. e-conserve d. e-wise Answer: b 49. In the context of Web server performance evaluation, _________ is testing that is used to compare the performance of hardware and software. a. response timing b. monitoring c. benchmarking d. filtering Answer: c 50. _________ is the number of HTTP requests that a particular hardware and software combination can process in a unit of time. a. Protocol b. Throughput c. Filter capacity d. Tracert capacity Answer: b 51. _________ architectures are used in LANs, WANs, and the Web. Answer: Client/server 52. _________ in the form of programs called Java servlets, is a technology which is used to create dynamic Web pages. Answer: Java Server Pages Java Server Pages (JSP) JSP 53. The practice of launching a return attack by sending e-mail messages back to a computer that originated a suspected spam is referred to as _________. Answer: teergrubing 54. The server computer on which database management software runs is often called a(n) _________. Answer: database server 55. _________ is a development framework used to create interactive Web sites that look like applications running in a Web browser. Answer: Asynchronous JavaScript and XML AJAX Asynchronous JavaScript and XML (AJAX) 56. In the context of multiple meanings of the term server, the server computer that handles incoming and outgoing e-mail is usually called a(n) _________. Answer: e-mail server 57. The computer on which a company runs its accounting and inventory management software is sometimes called a(n) _________. Answer: transaction server 58. A(n) _________ is any computer used to provide files or make programs available to other computers connected to it through a network. Answer: server 59. The Web client/server model in which messages are created and read only by the client and the server computers is called a(n) _________. Answer: two-tier client/server architecture 60. The message that a Web client sends to request a file or files from a Web server is called a(n) _________. Answer: request message 61. _________ tasks include running programs and allocating computer resources such as memory and disk space to programs. Answer: Operating system 62. _________ is the UNIX-based operating system of Oracle. Answer: Solaris 63. _________ comes bundled with current versions of Microsoft Windows Server operating systems and is used on many corporate intranets because many companies have adopted Microsoft products as their standard products. Answer: Microsoft Internet Information Server IIS Microsoft Internet Information Server (IIS) Microsoft IIS 64. _________ are messages rejected by a white list spam filter that should not have been rejected. Answer: False positives 65. _________ is a statistical technique in which additional knowledge is used to revise earlier estimates of probabilities. Answer: Bayesian revision 66. Visitor information captured by Web servers are placed into a Web _________ for data analysis. Answer: log file 67. A(n) _________ utility program examines each page on a Web site and reports any URLs that no longer exist. Answer: link checker 68. A popular server configuration which involves putting small server computers on a single computer board and then installing many of those boards into a rack-mounted frame. These servers-on-a-card are called _________. Answer: blade servers 69. In the context of designing a large Website's operations, in a(n) _________, a few very large and fast computers are used. Answer: centralized architecture 70. _________ is the amount of time a server requires to process one HTTP request. Answer: Response time 71. The ability of a network to connect devices that use different operating systems is called _________. Answer: platform neutrality 72. A(n) _________ returns information describing a server’s attributes. Answer: response header field 73. A large collection of servers is called a(n) _________. Answer: server farm 74. The various ways that servers can be connected to each other and to related hardware, such as routers and switches, are called _________. Answer: server architectures 75. A(n) _________ is a piece of network hardware that monitors the workloads of servers attached to it and assigns incoming Web traffic to the server that has the most available capacity at that instant in time. Answer: load-balancing switch 76. Explain the difference between a dynamic Web page and a static Web page. Answer: A dynamic page is a Web page whose content is shaped by a program in response to user requests, whereas a static page is an unchanging page retrieved from a file or set of files stored on a Web server. 77. Describe the major components of a typical request message from a client to a server. Answer: A typical request message from a client to a server consists of three major parts: request line, optional request headers, and optional entity body. The request line contains a command, the name of the target resource (a filename and a description of the path to that file on the server), and the protocol name and version number. Optional request headers can contain information about the types of files that the client will accept in response to this request. Finally, an optional entity body is sometimes used to pass bulk information to the server. 78. Describe some of the drawbacks of e-mail. Answer: One annoyance associated with e-mail is the amount of time that businesspeople spend answering their e-mail today. Researchers have found that most managers can deal with e-mail messages at an average rate of about five minutes per message. Some messages can be deleted within a few seconds, but those are balanced by the e-mails that require the manager to spend much more time finding facts, checking files, making phone calls, and doing other tasks as part of answering e-mail. A second major irritation brought by e-mail is the computer virus, more simply known as a virus, which is a program that attaches itself to another program and can cause damage when the host program is activated. Probably the most frustrating and expensive problem associated with e-mail today is the issue of unsolicited commercial e-mail. 79. Explain the roles of indexing and searching utility programs. Answer: Search engines and indexing programs are important elements of many Web servers. Search engines or search tools search either a specific site or the entire Web for requested documents. An indexing program can provide full-text indexing that generates an index for all documents stored on the server. When a browser requests a Web site search, the search engine compares the index terms to the requester’s search term to see which documents contain matches for the requested term or terms. More advanced search engine software (such as that used by the popular search engine site Google) uses complex relevance ranking rules that consider things such as how many other Web sites link to the target site. Many Web server software products also contain indexing software. Indexing software can often index documents stored in many different file formats. 80. Explain the factors required to measure a server's Web page delivery capability. Answer: Throughput and response time are the two factors used to evaluate a server’s Web page delivery capability. Throughput is the number of HTTP requests that a particular hardware and software combination can process in a unit of time. Response time is the amount of time a server requires to process one request. Test Bank for Electronic Commerce Gary P. Schneider 9781285425436, 9781305867819, 9781133526827

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