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SEC575 Information Security Law and Ethics

Week 4 Midterm Exam

Question 1 (TCO A) Which of the following describe what happens to law over time?

Group of answer choices

It evolves and changes.

It is enriched, defined, and interpreted by court decisions.

It provides a prediction about how courts will decide cases.

All of the above

B and C only

Question 2 (TCOA) For nonresident persons, long-arm statutes enable state courts to have jurisdiction over nonresidents in all but which one of the following situations?

Group of answer choices

Nonresidents who commit a within-the-state tort

Nonresidents who signed a contract within the state

Nonresidents who bought a product in this state and consumed it in the state in which the plaintiff is alleging jurisdiction

Nonresidents who bought a product in another state and consumed it in the state in which the plaintiff is alleging jurisdiction

Question 3 (TCOB) When a website makes outlandish claims regarding age longevity products, the FTC can pursue an action against which of the following groups?

Group of answer choices

The owner of the site

The website designer

The advertising agency

All of the above

A and C only

Question 4 (TCOC) Which best describe describes what is provided by the Internet Tax Freedom Act of 1998?

Group of answer choices

A 3-year moratorium on special taxation of the Internet

A 3-year moratorium, then a federal tax on Internet access or electronic commerce

A 3-year moratorium on multiple and discriminatory taxes on electronic commerce

A 3-year moratorium on taxation of goods or services that are sold exclusively over the Internet with no comparable offline equivalents

Question 5 (TCOE) Under the UCC, additional terms in the acceptance are proposals that become part of the contract if which (if any) of the following occurs?

Group of answer choices

The offer expressly limits acceptance to the terms of the offer.

They materially alter the acceptance.

They alter a nonmaterial term of the offer.

Notification of objection to the terms has already been given or is given within a reasonable time after notice of them is received.

Question 6 (TCOC) Ralph chooses the password “brains” when becoming a website member to an online auction company. To become a member, Ralph must provide a good bit of personal information as well as choose the password. If the website uses commercially reasonable procedures for identifying a customer, then

Group of answer choices

the risk of unauthorized use of a password stays with the vendor.

the risk of unauthorized use of a password shifts from the website vendor to Ralph.

the risk of unauthorized use of a password shifts to Ralph, but Ralph will not have to pay if anything is charged to his account, provided he can show that he did not order the items.

None of the above

Question 7 (TCOE) You go into a store and purchase some software that displays a clickwrap agreement at the time of installation. You have already purchased the product and are being asked to consent to the contract that purportedly memorializes the payment. When is the contract formed? Is it at the moment of purchase or later, when you assent to the terms of the clickwrapagreement? Explain your answer.

Question 8 (TCOB) State taxation of out-of-state businesses is based upon establishment of “minimum contacts.” Describe the theory of minimum contacts and explain how that theory affects whether or not a state can tax goods sold or services rendered.

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