Exam 2- Digital Fashion Retailing

Click-wrap acceptance

happens by clicking a button on the Web site

Product disparagement

when statement injures product or service reputation Web sites must consider specific laws before making negative, evaluative statements about products Designers must avoid potential defamation liability by not altering photos or images Exceptions in U.S. for defamatory statements about public figures (not in other countries)

Fair use of a copyrighted

work is an exemption from infringement Allows copying it for use in criticism, comment, news reporting, teaching, scholarship, or research

Spend

the total yearly dollar amount for goods and services purchased Managing spend is an important function and can be a key component in overall profitability

Optical scanners and bar codes

track movement of materials and integration with EDI is now prevalent Manages inventory flows and forecasts materials needs across the supply chain Real-time location systems (RTLS) are bar code tracking system used by fulfillment centers

Social Sites

Set up social sites with a consistent brand name and graphics across all channels

A business cannot commit a tortious act by simply selling a product that causes harm to a buyer.

FALSE

Negligent tort

is unintentionally selling a harmful product

Bulletin board systems (BBSs)

allowed users to connect via phone lines to read and post messages Mostly free, but some charged a fee

Adaptive supply chain

exists when company uses technology to quick respond to change in market demand and supplier conditions Leads to higher efficiency, lower costs and greater profits

Impact sourcing

(smart sourcing) is offshoring done by or through not-for-profit organizations who use the business activity to support training or charitable activities in less-developed parts of the world.

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.

nexus

What is a warranty disclaimer and when might an online business use one?

A warranty disclaimer is a statement declaring that the seller will not honor some or all implied warranties. Online sellers who want to avoid some implied warranty liability can do so by making a warranty disclaimer.

The changing nature of runway

360° Videos, Live-Stream, Virtual Runway, Shoppable Runway, See Now/Buy Now, and Consumer Participation

How do most U.S. Web sites obtain a user's agreement to its end-user license agreement (EULA)?

A Web site user can agree to that site's EULA or its terms and conditions by clicking a button on the Web site (called a click-wrap acceptance) or by simply using the Web site (called a Web-wrap acceptance or browser-wrap acceptance).

What are the three key elements of a contract?

Any contract includes three essential elements: an offer, an acceptance, and consideration

Target consumers

Based on consumer segmentation and targeting, identify the social sites where you suspect conversation is taking place about your brand or industry

_____ were computers that allowed users to connect using dial-up connections through telephone lines to read and post messages in a common discussion forum.

Bulletin board systems

Research

Conduct a listening campaign across social media to gauge sentiments about the brand. Determine the percentage of the conversation that is positive, neutral, mixed, or negative. Assess, which social sites have the most active conversations and which will be the best channels to establish engagement.

Contract

Contract is a promise between two or more entities providing for an exchange of value between them

Define existing content

Create fresh, engaging content that reflects the new brand image.

EDI (electronic data interchange)

EDI is the dominant technology for electronic B2B transactions Computer-to-computer business information transfer using a standard format Businesses exchanging info are trading partners EDI compatible firms exchange data in specific standard formats Often transaction data but can include other information related to transactions

In general, contracts are invalid if they are not in writing or signed.

FALSE

In the physical world, geographic boundaries rarely coincide with legal and cultural boundaries.

FALSE

Sites that monetize visitors by charging them are unconcerned about visitor backlash.

FALSE

Effects are the impact of a person's behavior

Generally stronger on things that are physically closer Diminish as geographic distance increase E.g. a name of a restaurant, items or objects acceptable to be sold in one part of the world could be illegal in other....but traditional effect-based measures don't apply for businesses operating online. Laws based on traditional effects-based measures do not work as well for online businesses

What is the difference between a breach of contract and a tort?

If either party to a contract does not comply with the terms of the contract, the other party can sue for failure to comply, which is called breach of contract. A tort is an intentional or negligent action (other than breach of contract) taken by a legal entity that causes harm to another legal entity.

What is judicial comity?

Judicial comity is an accommodation by a court in one country in which it voluntarily enforces another country's laws or court judgments when no strict requirement to do so exists.

Advantages of a VAN

Need to support one communications protocol and the VAN provides translation between different transaction sets VAN performs automatic compliance checking and records message activity in an audit log Helps establish nonrepudiation: ability to establish that a particular transaction actually occurred

Radio Frequency Identification Devices (RFIDs)

Small chips using radio transmissions track inventory quicker and more accurately than bar codes Goal is to help reduce lost sales from stockouts

Relationship between geographic and legal boundaries defined by four variables

Power Effects Legitimacy Notice

Generally includes all purchasing activities, plus the monitoring of all elements of purchase transactions.

Procurement

network structures

Procurement departments being given new tools to negotiate and possibly form strategic alliances

Businesses that operate on the Web must comply with the same laws and regulations that govern the operations of all businesses.

TRUE

Electronic data interchange (EDI) was the first form of electronic commerce to be widely used in business.

TRUE

Many companies use strategic alliances, partnerships, and long-term contracts to create relationships with other companies in the supply chains for the products that they manufacture or sell.

TRUE

Many industry value chains no longer consist of a single sequence of companies linked in a single line but include many parallel lines that are interconnected in a web or network configuration.

TRUE

Spot purchasing

Purchases made in loosely organized (spot) market If demand exceeds contract purchasing estimates

_____ tags can be placed anywhere on or in most items and are readable even when covered with packing materials, dirt, or plastic bands.

Radio Frequency Identification Device (RFID)

value-added network (VAN)

Receives, stores, forwards electronic messages containing EDI transaction sets

A social media marketing strategy is the roadmap that enables the organization to concentrate specific resources on the greatest opportunities to increase:

Sales and ratings Achieve a sustainable competitive advantage Deliver value to its customers and other stakeholders

The use of Internet technologies in sourcing activities is called e-sourcing.

TRUE

What is jurisdiction?

The ability of a government to exert control over a person or corporation is called jurisdiction.

Microlending Sites

This is lending small amounts of money to people starting or operating small businesses (especially in developing countries)

Trademark

Trademark is a distinctive mark, device, motto, or implement that a company affixes to goods it produces for identification purposes Service mark identifies the services provided Registered with governments (state and/or federal)

End-user license agreements (EULAs)

User must accept contract user before installing software which may happen when "Agree" is clicked

Patent

an exclusive right granted by government to an individual to make, use, and sell an invention Protection for 20 years in the United States or inventor can patent the design for 14 year Invention must be genuine, novel, and useful Not obvious given current technology state Software patents not considered useful because technology obsolete before patent protection secured Process is expensive and takes several years

Indirect materials

are all other materials company purchases Includes factory supplies and replacement parts for machinery Purchasing cards (p-cards) allow managers to make multiple small purchases with cost-tracking information sent to procurement

Terms of service (ToS) agreements

are detailed rules and regulations Limit Web site owner's liability for what one might do with site information Site visitor held to terms of service by simply using site

Judicial comity

comity is enforcing other countries' laws out of a sense of comity (friendly civility) These is are complex issue should be considered when conducting business online

Manipulation of trademarked objects

constitutes infringement of trademark holder's rights A site that uses modified mickey Mouse is likely to hear from Disney legal team

Monetizing

converting site visitors into fee-paying subscribers or purchasers of services Concern: visitor backlash

Per se defamation

defamation occurs when statements are so negative that injury is assumed

Sourcing

identifying suppliers and determining qualifications

Newsletter

include social site links; make them feel that that the engagement is especially for them in order to cultivate emotional investment.

Intellectual property includes

includes all products of the human mind, both tangible and intangible Protections afforded by copyrights and patents, trademarks registration, service marks

Procurement

includes all purchasing activities, monitoring all purchase transaction elements and managing and developing supplier relationships Also called supply chain management Procurement staff have high product knowledge to identify and evaluate appropriate suppliers

Forum selection clause

indicates a contract will be enforced according to a particular state's laws

Classic objective

objective is to provide the right goods in the right quantities in the right place at the right time Web and the Internet providing increasing number of opportunities to better manage activities Atomization, tracking etc. saves companies lots of money Tracking ensure less representatives are required

Subject-matter jurisdiction

is a court's authority to decide particular dispute type Rules are clear and easy to apply (few disputes) U.S. federal courts have subject-matter jurisdiction over issues governed by federal laws e.g. federal tax, copyright, patent, bankruptcy issues etc. U.S. state courts have subject-matter jurisdiction over issues governed by state laws e.g. state tax, licensing issues.

Implied warranty

is a promise to which the seller can be held even though seller did not make an explicit statement of that promise E.g. goods or services offered are fit for the intended purpose

Copyright

is a right granted by government to the author (creator) of literary or artistic work Includes virtually all forms of artistic or intellectual expression Gives author (creator) sole and exclusive right to the work (print, publish, sell) for a specific length of time Works created after in 1977 are protected for the life of the author +70 years Works by corporation or non-government organizations are protected for 95 ears from date of publication or 120 from the date of creation, whichever is earlier.

Warranty disclaimer

is a statement declaring that the seller will not honor some or all implied warranties Must be made conspicuously and in writing Only legally effective if obvious and easy for a Web site buyer to find E.g. some items clearly state you cannot return to store; call the manufacture

Power (jurisdiction)

is ability government/state/city to enforce laws over physical space and people and objects that reside in that space e.g. impose sanctions on those who violate the law

Tort

is an intentional negligent action taken by a legal entity that causes harm to another legal entity Sufficient jurisdiction requires both subject-matter jurisdiction and personal jurisdiction

Personal jurisdiction

is determined by residence of the parties If defendant is a state resident where is court located the determination is straightforward An out-of-state person or corporation can voluntarily submit to a state court jurisdiction

Defamatory statement

is false and injures reputation of another person or company

Intentional tort

is knowingly or recklessly causing injury to a buyer

Cybersquatting

is registering a trademarked domain name hoping owner will pay money to acquire URL

Supply Web

is replacing the term "supply chain" Parallel lines interconnect to form a Web or network configuration

consideration set

is the brand that a consumer thinks about when considering a purchase. For instance, Hermés may come to mind when determining where to buy a luxury purse

Notice

is the expression of a change in rules as physical boundaries are crossed. Easy for physical boundaries but not easy online

Legitimacy

is the idea that those subject to laws should have some role in formulating them Online businesses must be ready to deal with a wide variety of regulations as they differ from country to country

Trade name

is the name business uses for identify Protected under common law, not trademark law Web site designers must not use any trademarked name, logo, or other mark without permission

Trademark dilution

is the reduction of distinctive trademark quality by alternative uses

e-sourcing

is the use of Internet technologies in sourcing activities

Authority to bind

issue arises when employee accepts a contract and company later asserts employee was not authorized

The ability of a government to exert control over a person or corporation is called _____.

jurisdiction

The details of _____ vary from state to state, but generally create personal jurisdiction over nonresidents who transact business or commit tortious acts in the state.

long-arm statutes

Mobile phones that function as credit cards are called _____.

mobile wallets

One trend that is becoming clear in purchasing, logistics, and support activities is the shift away from hierarchical structures toward _____ structures.

network

Constructive notice

new laws and norms is received when an international border is crossed Ignorance of law: not sustainable defense Creates problems for online businesses when unknown customers from other countries access Web sites

Breach of contract

occurs if either party does not comply with contract terms

Name changing (typosquatting)

occurs when someone purposely registers misspelled variations of well-known domain names Name stealing is unauthorized changes to domain name ownership Domain name ownership change occurs when information maintained by public domain registrar changed in registrar's database Allows name stealer to manipulate the site Occurs when safeguards not in place Main purpose is to harass site owner

Web-wrap acceptance

or browser-wrap acceptance occurs by simply using the Web site

Influencer outreach

outreach-follow, friend, engage, and share content with them

Offshoring

outsourcing done by organizations in other countries Business process offshoring includes purchasing, research and development, record keeping, information management

The trend toward having readers help write their own news is called _____ journalism.

participatory

Identify influencers

people who have the power to persuade and change opinion and behavior. During the research and listening process, identify those people who have large followings, are actively posting content, and appear open to interaction and sharing.

Business process patent

protects specific set of procedures for conducting a particular business activity Enforcing rights not clear (Amazon vs. Barnes and Noble-1-click method) Only common in the United States

Patent trolls

purchase patents they believe are being infringed Threaten to sue infringers for cash settlement Several governments have introduced legislation to limit patent trolls with limited success

Replenishment

purchasing (contract purchasing) Company negotiates long-term material contracts

Blog updates

short daily posts to pull content for all other sites

Statute of Frauds (state laws)

specify contracts that must be written and signed Applies to sale of goods over $500

Long-arm statutes

statutes create personal jurisdiction over nonresidents committing tortious acts Tortious acts an exceptions to personal jurisdiction

Meme and infograph creation

tell stories in graphics

Outsourcing

using other organizations to perform specific activities Typically used for manufacturing Now used for payroll, human resources , health insurance, employee benefits etc.

Shrink-wrap acceptance

was used in the past with contract accepted by removing plastic shrink wrap on software box

Digital watermark

watermark is a digital code or stream embedded undetectably in digital image or audio file Can be encrypted to protect contents

Usenet newsgroups

were message posting areas a set of interconnected computers devoted to storing information on specific topics