E-Commerce Final Examination

Tuesday May 2, 2000

Two hours

The examination consists of three parts:

PART I - the essay that you already completed and turned in. (20 points)

PART 11 - twenty true/false questions worth 2 points each, (40 points)

PART III - two short answer questions worth 10 points each. (20 points)

80 points total.

This is a no notes - closed book examination. Do not begin until you are told to do so.
Stop all writing when the proctor announces that the examination is over.
Write your answers clearly and legibly on the provided Scantron answer sheet and the space provided in this exam for Part III.

Since the space to answer Part III is limited you may wish to plan and outline your answer before writing. You should have plenty of time to do this. The exam is not designed to be time constrained.
Make sure your examination number is on all pages you turn in, especially the Scantron answer sheet and the pages in Part III:

Good luck and have a productive and enjoyable summer.

PART I - the essay that you already completed and turned in. (20 points)

PART II - twenty true/false questions worth 2 points each. (40 points total)

1. The vast majority of e-commerce currently involves business to consumer transactions using the internet.

2. Conventional or symmetric cryptography does not require a "key" to encrypt and decrypt the message.

3. UCITA refers to the electronic transfer from computer to computer of information using an agreed standard to structure the information.

4. The scarcity doctrine was the basis for regulation of the telephone network when it was first developed.

5. The Uniform Electronic Transactions Act applies to only the substantive and not the procedural aspects of transactions.

6. Commodity money refers to tokens or pieces of paper that are not intrinsically valuable themselves, but can be exchanged for a specific commodity, such as gold or sliver.

7. Other than printing money and regulating banks, government plays no significant role in the various monetary and financial systems.

8. Open EDI or Internet EDI refers to United Nations effort to provide EDI capabilities to businesses in developing countries.

9. A website that merely provides information and advertisements to users is generally all that is necessary to provide a court with in personam or personal jurisdiction over the individual that posted the information.

10. Inter-personal e-mails have been given the same protection and expectation of privacy as first class mail by the Electronic Communications Privacy Act of 1986 ("ECPA"), however, the ECPA does not protect employees from having e-mails monitored by employers.

11. EDIFACT is a set of internationally agreed standards, directories and guidelines for the electronic interchange of structured data.

12. The security of most Electronic Funds Transfer (EFT) systems is enhanced by the fact that they generally use closed and private networks where the sender and receiver are known and identified.

13. The Uniform Electronic Transactions Act is designed to permit the use of electronic communications and records in "any transaction" unless excluded.

14. The extension of credit is one method of "creating money."

15. Generally, the courts in the United States treat liability for harm caused by information the same as liability for harm caused by tangible objects.

16. The Uniform Computer Information Transactions Act has evolved to become Article 2B of the Uniform Commercial Code.

17. The exercise of jurisdiction an the basis that an act has an effect in the geographic location exercising jurisdiction is an example of the territoril principle

18. ANSI X 12 refers to a standard used in EDI transactions developed by the American National Standards Institute,

19. Parties can specify in an electronic contract what law applies and most courts will enforce that selection, even if the law chosen has no substantial relationship to the parties or the transaction, as long as the selection is voluntary.

20. Both federal and state courts often allow the fact finder to draw a presumption against a party that intentionally destroys evidence that the evidence would have been unfavorable to the cause of the party that undertook the destruction.

PART III - begins on next page

PART III - two short answer questions worth 10 points each. (20 points total)

1.  It was been postulated that knowledge and information, the increasingly important assets of the information age society, are different from tangible property assets of the agricultural and industrial ages. In the space provided list some of the most significant differences and how these differences are affecting the law of e-commerce.

2. For electronic transactions (1) authentication and (2) non-repudiation are important legal concerns. In the space provided explain what each is and why each is of particular concern in electronic transactions.

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