Business Law Chapter 10

Spam, officially known as unsolicited commercial email or unsolicited bulk email, a. is regulated by Section 5 of the FTC Act. b. accounts for about 55 percent of all email traffic. c. is estimated to be fraudulent in content or packaging in approximately one-fourth of all cases. d. although annoying, does lower the cost of connecting to the internet.

B. accounts for about 55 percent of all email traffic

Spam is illegal per se. a. True b. False

False

The European Union (EU) does not view privacy as a fundamental right of its citizens, and the EU's policies toward privacy are limited. a. True b. False

False

The federal government has preempted the field of online privacy, so states may not pass their own online privacy statutes. a. True b. False

False

Jorgeson Co., on its website, promised the company would not give a customer's personal information to third parties without the customer's consent, but then gave out such information anyway. This practice violates Section 5 of the FTC Act .a. True b. False

True

The Electronic Communications Privacy Act (ECPA) of 1986 is a federal statute that regulates email. a. True b. False

True

Which statement regarding FIPS is true? a. FIPS are only recommendations, not law. b. FIPS originated from the Department of Justice. c. FIPS has been ineffective in shaping privacy policies. d. FIPS was established after the 9/11 terrorist attacks.

a. FIPS are only recommendations, not law

Which of the following regulates deceptive practices regarding a company's privacy policy? a. Section 5 of the FTC Act b. the federal COPPA c. the federal ECPA d. the FCC's privacy directive

a. section 5 of the FTC Act

Which of the following statutes requires that commercial email not have deceptive headings and clearly indicate if the email is an advertisement? a. ECPA b. CDA of 1996 c. Section 5 the FTC Act d. CAN-SPAM

d. CAN-SPAM

What are some ways we lose our privacy in the digital world? a. through data breaches b. through surveillance c. via the internet of things d. All of these are correct.

d. all of these are correct

The law that protects the privacy of medical records is called the a. Children's Online Privacy Protection Act of 1998 (COPPA). b. Health Insurance Portability and Accountability Act (HIPAA). c. Foreign Intelligence Surveillance Act (FISA). d. Electronic Communications Privacy Act of 1986.

B. Health Insurance Portability and Accountability Act (HIPAA)

Which of the following protects email messages from unauthorized interception? a. CAN-SPAM b. FIPS c. ECPA d. COPPA

C. ECPA

In 2018, the European Union (EU) implemented the European General Data Protection Regulation (GDPR). a. True b. False

True

The internet of things gathers, sends, and receives data. a. True b. False

True

Sherry, a 12-year-old, visited a website that wanted to know her family size, her parents' educational level, and her weekly allowance. The site also asked Sherry's name, mailing and email addresses, and age. a. Under COPPA, the website must disclose how it will use the information it acquires from Sherry. b. COPPA prohibits the internet operator from collecting such information under any circumstances. c. COPPA does not apply to Sherry's situation since she is over the age limit for those protected by the statute. d. Under COPPA, the website may only collect information about Sherry's name and email address.

a. Under COPPA, the website must disclose how it will use the information it acquires from Sherry.

Under the Electronic Communications Privacy Act, a. violators are subject to both criminal and civil penalties. b. violators may be subject to civil, but not criminal, penalties. c. only the unauthorized disclosure of email messages constitutes a violation. d. only the unauthorized interception of email messages by the government or an ISP constitutes a violation.

a. violators are subject to both criminal and civil penalties.

Which of the following is NOT a core principle of the Fair Information Practices (FIPS)? a. notice/awareness b. choice/consent c. privacy/refusal d. access/participation

c. privacy/refusal

Burns Medicine Shop developed a website where customers could ask the pharmacists questions and could refill prescriptions online. What statute requires Burns to have and disclose a privacy policy to anyone using the website? a. the Federal Trade Commission Act b. the Electronic Communications Privacy Act c. the Fair Information Practices Act d. No statutes presently require websites to have or disclose a privacy policy.

d. no statutes presently require websites to have or disclose a privacy policy.

After Jan's boyfriend broke up with her, she posted sexually explicit pictures of him on her Facebook page and wrote about how he was a terrible boyfriend. Jan's actions are protected by the First Amendment to the Constitution. a. True b. False

False

The Electronic Communications Privacy Act includes a. the Foreign Intelligence Surveillance Act. b. the Wiretap Act and the Stored Communications Act. c. the Health Insurance Portability and Accountability Act. d. the Family Educational Rights and Privacy Act.

b. The wiretap act and the stored communications act

Under the Stored Communications Act, which of the following are considered electronic communication? a. voice mail b. email c. social media d. All of these are correct.

D. all of these are correct

The FTC regulates truth in advertising and endorsements. Its rules apply a. the notion that federal government remain a neutral party in deciding privacy law cases regarding the internet. b. the principle that internet service providers (ISPs) should not remain neutral in determining how information should flow on the internet. c. the notion that the First and Fourth Amendments should not be used in determining citizens' privacy rights regarding the internet. d. equally to bloggers, YouTubers, online reviewers, and others on social media.

D. equally to bloggers, YouTubers, online reviewers, and others on social media.

Which of the following statements regarding the Foreign Intelligence Surveillance Act (FISA) is true? a.To spy on people located in the United States who are communicating abroad, the government needs a warrant. b.FISA was enacted in 1978, but its provisions were greatly strengthened in the aftermath of the 9/11 terrorist attacks. c.Under the FISA, the government does not need to notify defendants if the evidence being used against them in court was gathered in FISA surveillance. d.To spy on people located in the United States who are communicating abroad, the government must obtain permission from a secret Foreign Intelligence Surveillance Court.

D.To spy on people located in the United States who are communicating abroad, the government must obtain permission from a secret Foreign Intelligence Surveillance Court.

At its inception, the Communications Decency Act of 1996 created broad immunity for internet service providers (ISPs) and websites. a. True b. False

True

Under the Electronic Communications Privacy Act (ECPA), any intended recipient has the right to disclose the content of an email. a. True b. False

True

When you shop online, most retailers collect personal information about you. a. True b. False

True

The internet was started in the 1960s as a project to link military contractors and universities. The World Wide Web was created as a subnetwork of the internet. a. True b. False

True

The tort of public disclosure of private facts prohibits the unjustifiable revelation of truthful, but secret, information. a. True b. False

True

Rachel works for the Internal Revenue Service and keeps some personal information on her computer at work. There has been suspicion that Rachel has not been keeping tax return information confidential. The Fourth Amendment to the Constitution, prohibiting unreasonable searches and seizures, protects Rachel from having the government review the personal information she has on her computer. a. True b. False

False

The Foreign Intelligence Surveillance Act (FISA) requires government agencies to delete irrelevant and personally identifying data before providing it to other agencies. a. True b. False

True

Emily, an 11-year-old girl, wants to sign-up for a fashion newsletter and sweepstakes. In order to do so, the website wants to know Emily's name, address, phone number, and email address. Which of the following is correct? a. Emily must have permission from her parents in order to furnish the information to the website. b. Under the Children's Online Privacy Protection Act, the website cannot collect any of this information from Emily, even if her parents give her permission. c. Under Section 5 of the FTC Act, the website is protected from disciplinary action if Emily provides the requested information. d. The Electronic Communications Privacy Act will allow the website to collect Emily's information but restricts the website from sharing the information with other firms.

a. Emily must have permission from her parents in order to furnish the information to the website.

Data disposal laws require a. businesses to destroy customer data and maintain reasonable security procedures to guard against theft. b. senders of promotional emails to offer an opt-in system to recipients. c. companies to obtain permission from customers before destroying data older than ten years old. d. businesses to notify individuals who are affected by any incident that results in unauthorized access of data.

a. businesses to destroy customer data and maintain reasonable security procedures to guard against theft.

You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy hats and shirts. This banner ad is most likely the result of a. data mining. b. a coincidence. c. the internet crime of theft of private information. d. encryption software.

a. data mining

The case of Chaney v. Fayette County Public School District held that a. when someone shares a photo with friends online, they cannot justifiably expect that the photo will be kept private. b. the Fourth Amendment governs the private sector as well as actions taken by the government. c. wiretap laws protect all speakers, not just those with a reasonable expectation of privacy. d. so-called "revenge porn" posted on social media is protected speech by the First Amendment.

a. when someone shares a photo with friends online, they cannot justifiably expect that the photo will be kept private.

Under what circumstances is intrusion into someone's private life a tort? a. under all circumstances based on the Fourth Amendment b. if a reasonable person would find it offensive c. only if it conflicts with the First Amendment d. only if the intrusion is substantially untruthful

b. if a reasonable person would find it offensive

The Children's Online Privacy Protection Act (COPPA) prohibits internet operators from collecting information from children under what age without parental permission? a. 18 b. 16 c. 13 d. 10

c. 13

Musical Productions has a privacy policy posted on its website, but it does not follow the provisions contained within it. Musical Productions is in violation of a. the CAN-SPAM Act. b. the Communications Decency Act. c. Section 5 of the Federal Trade Commission Act. d. the Electronic Communications Privacy Act

c. Section 5 of the Federal Trade Commissions Act.

A website printed some truthful, but secret, information about Danielle. Which of the following would likely result in a court ruling that Danielle had NOT stated a claim under the public disclosure tort? a. The excerpts the website printed were from Danielle's personal diary. b. The website disclosed that Danielle secretly hated her mother and father. c. The website printed that Danielle had participated in a robbery in 2010. d. The website's revelations were seen by over 50,000 viewers.

c. The website printed that Danielle had participated in a robbery in 2010.

What is user-generated content? a. commercial transactions conducted electronically on the internet b. unsolicited commercial email c. anything created and made publicly available by end users d. large data sets that reveal user patterns, trends, and association

c. anything created and made public available by end users

Which of the following is a true statement regarding the EU General Data Protection Regulation? a. It defines data only as information that can be used directly to identify an individual. b. It applies only to companies located within Europe. c. It allows people to stop companies from processing their personal data. d. It allows businesses to keep customer data indefinitely.

c. it allows people to stop companies from processing their personal data