E-Commerce Law and Policy Exam Practice Tests
Course Introduction
E-Commerce Law and Policy explores the legal frameworks, regulations, and policies governing online commercial activities. The course covers key topics such as contract formation in the digital environment, electronic signatures, consumer protection, data privacy, intellectual property, and cybersecurity. Students will analyze national and international legal issues affecting e-commerce transactions, including cross-border trade regulations and dispute resolution mechanisms. The course also examines emerging trends and challenges, such as the regulation of digital platforms, online advertising, and the implications of new technologies like cryptocurrencies. Through case studies and legal analysis, students will develop a comprehensive understanding of how law and policy shape the rapidly evolving field of electronic commerce.
Recommended Textbook
E Commerce 2016 Business Technology Society 12th Edition by Kenneth C. Laudon
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Page 2
Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) All of the following can be considered a precursor to e-commerce except:
A)the development of the smartphone.
B)Baxter Healthcare's PC-based remote order entry system.
C)the French Minitel.
D)the development of Electronic Data Interchange standards.
Answer: A
Q2) List and briefly explain the main types of e-commerce.
Answer: The main types of e-commerce are Business-to-Consumer (B2C), in which online businesses attempt to reach individual consumers; Business-to-Business (B2B), in which businesses focus on selling to other businesses; Consumer-to-Consumer (C2C), which provides a market in which consumers can sell goods to each other; mobile e-commerce (m-commerce), which refers to the use of wireless digital devices to enable Web transactions; social e-commerce, which is commerce enabled by social networks and online social relationships; and local e-commerce, which is e-commerce that is focused on engaging the customer based on his or her geographical location.
Q3) The Internet is a worldwide network of computer networks.
A)True
B)False
Answer: True
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Page 3
Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) E-commerce has increased price competition in nearly all markets.
A)True
B)False
Answer: True
Q2) What is the primary revenue model for an e-distributor?
A)sales
B)transaction fee
C)advertising
D)subscription
Answer: A
Q3) Which of the following is not a key element of an elevator pitch?
A)exit strategy
B)growth metrics
C)legal structure
D)market opportunity
Answer: C
Q4) First movers are often not as successful as follower firms.
A)True
B)False
Answer: True
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Chapter
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Q1) WLAN-based Internet access derives from the same technological foundations as telephone-based wireless Internet access.
A)True
B)False
Answer: False
Q2) The protocol that enables the transmission of voice and other forms of audio communication over the Internet is called:
A)VoIP.
B)IPTP.
C)VTP.
D)IP.
Answer: A
Q3) The major technologies used with wireless local area networks are:
A)Wi-Fi and Bluetooth.
B)Wi-Fi and WiMax.
C)Bluetooth and 3G.
D)WiMax and 3G.
Answer: A
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Q1) Explain the main functionalities included in e-commerce merchant server software and the decision-making process for a manager choosing from among the various e-commerce merchant server software packages.
Q2) Advantages of dynamic page generation include all of the following except:
A)lowered menu costs.
B)market segmentation.
C)nearly cost-free price discrimination.
D)client-side execution of programming.
Q3) Which of the following is a server-side technique that detects the attributes of the device making the request, and using predefined templates, loads a version of a site that is optimized for the device?
A)LAMP
B)AWD
C)mobile first design
D)RoR
Q4) Using prebuilt templates is typically one of the most expensive choices when building an e-commerce site.
A)True
B)False
6
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Chapter 5: E-Commerce Security and Payment Systems
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Q1) All of the following are methods of securing channels of communication except:
A)SSL/TLS.
B)certificates.
C)VPN.
D)FTP.
Q2) Which of the following has the Internet Advertising Bureau urged advertisers to abandon?
A)HTML
B)HTML5
C)Adobe Flash
D)Adobe Acrobat
Q3) ShellShock is an example of a software vulnerability.
A)True
B)False
Q4) Rustock is an example of which of the following?
A)worm
B)botnet
C)phishing
D)hacktivism
Q5) Why is it difficult to accurately estimate the actual amount of cybercrime?
Page 7
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Q1) Which of the following statements about Canada's anti-spam law is not true?
A)Canada's law is based on an opt-in model.
B)The law has no impact on companies located within the United States.
C)The first phase of the law went into effect in 2014.
D)The law applies to e-mail, texts, and social media messaging.
Q2) Ad blockers operate in a manner very similar to which of the following?
A)anti-virus software
B)firewalls
C)Flash cookies
D)anonymous browsing
Q3) Impressions are a measure of the:
A)number of times an ad is clicked.
B)number of times an ad is served.
C)number of http requests.
D)number of pages viewed.
Q4) Identify and describe the various types of rich media ads and video ads and explain how each one works.
Q5) What is cross-platform attribution and why is it difficult?
Q7) How are blogs being used for marketing? Page 8
Q6) What are two methods being developed to track consumers across devices?
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Page 9
Chapter 7: Social, Mobile, and Local Marketing
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Q1) Facebook's share price fell dramatically after its IPO because investors feared that:
A)Facebook's new marketing solutions would be difficult to monetize.
B)new social networks such as Instagram were cannibalizing Facebook's audience.
C)privacy concerns were driving users away.
D)Facebook would be unable to increase advertising revenues fast enough to justify its price.
Q2) Brand pages on Facebook typically attract more visitors than a brand's Web site.
A)True
B)False
Q3) Name and describe five of the marketing tools available with Facebook.
Q4) Which of the following accounts for the most time people spend using a mobile device?
A)watching video
B)social networks
C)listening to music
D)reading news and magazines
Q5) Why is local mobile marketing so attractive to marketers?
Q6) Name and describe the five steps in the social marketing process.
Q7) What are the basic steps in creating a Pinterest marketing campaign?
Page 10
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Chapter 8: Ethical, Social, and Political Issues in E-Commerce
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Q1) The European Data Protection Directive prohibits the transfer of PII to organizations or countries that do not have similar privacy protection policies.
A)True
B)False
Q2) Which of the following features of e-commerce technology can result in work and shopping invading family life?
A)interactivity
B)ubiquity
C)information density
D)global reach
Q3) Which of the following is not aimed at strengthening the ability of law enforcement agencies to monitor Internet users without their knowledge?
A)the USA PATRIOT Act
B)the Homeland Security Act
C)the Communications Assistance for Law Enforcement Act
D)the USA Freedom Act
Q4) Describe the fantasy sport business and the issues it raises.
Q5) How is it possible to measure the strength of privacy policies?
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Chapter 9: Online Retailing and Services
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Q1) Personal consumption of retail goods and services accounts for over 75% of total gross domestic product.
A)True
B)False
Q2) Which of the following is not one of the central challenges facing the online retail industry?
A)lack of physical store presence
B)consumer concerns about the privacy of personal information
C)inconvenience in returning goods
D)delivery delays
Q3) Which of the following is an on-demand service company focused on lodging?
A)Uber
B)Lyft
C)Airbnb
D)Task Rabbit
Q4) About 90% of Internet users in the United States are now online buyers.
A)True
B)False
Q5) Why have so many online retailers had difficulty in achieving profits? How has this changed by 2015?
Page 12
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Chapter 10: Online Content and Media
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Q1) Which of the following has the highest share of the e-book market?
A)Amazon
B)Apple
C)Google
D)Barnes & Noble
Q2) In the wholesale model of e-book distribution, pricing power is with the publisher.
A)True
B)False
Q3) In 2015, the time spent on desktop computers and mobile devices exceeded the time spent in front of the television.
A)True
B)False
Q4) Approximately ________ of the Internet population in the United States reads magazines online.
A)one-quarter
B)one-third
C)one-half
D)three-quarters
Q5) Describe the three basic revenue models for digital content delivery.
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Chapter 11: Social Networks, Auctions, and Portals
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Q1) Which of the following companies was an early investor in Facebook?
A)Google
B)Apple
C)Microsoft
D)LinkedIn
Q2) Each of the following is one of the top six social network sites in the United States except:
A)Tumblr.
B)Snapchat.
C)Instagram.
D)Pinterest.
Q3) Which of the following is a community of members who self-identify with a demographic or geographic category?
A)practice network
B)sponsored community
C)affinity community
D)interest-based social network
Q4) Describe four shared characteristics of social networks.
Q5) What business models do social networks use?
Q6) Describe the evolution of social networks from their earliest appearance.
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Chapter 12: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Q1) Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management.
A)management
B)simplification
C)competition
D)collaboration
Q2) Which of the following terms refers to the links that connect business firms with one another to coordinate production?
A)supply chain
B)B2B e-commerce
C)vertical market
D)horizontal market
Q3) How are social networks being used in B2B e-commerce?
Q4) Which of the following statements about cloud-based B2B systems is not true?
A)Much of the expense of the system is shifted from the B2B network provider to the firm.
B)B2B network providers charge customers on a demand basis.
C)Network effects apply, enabling the spreading of costs.
D)Cloud-based B2B data networks can be implemented in short periods of time.
Page 15
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