Ellasaurus Products

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Group: Rosibel BonielFeb. 14, 2011
Miriam Claire ObquiaMrs. Clemencia Masiba

Comp.2 (review questions)

Chapter 7: The Environment of Electronic Commerce: Legal,Ethical, and Tax Issues

1. In about 100 words, explain why online businesses might have difficulty limiting the effects of their actions to a relatively small geographic area. The legal concept of jurisdiction on the Internet is still unclear and ill defined. The relationship between geographic boundaries and legal boundaries is based on four elements: power, effects, legitimacy, and notice. These four elements have helped governments create the legal concept of jurisdiction in the physical world. Because the four elements exist in somewhat different forms on the Internet, the jurisdiction rules that work so well in the physical world do not always work well in the online world.

2. In about 300 words, describe the differences between subject-matter jurisdiction and personal jurisdiction. Subject-matter jurisdiction is a court's authority to decide a particular type of dispute. For example, in the United States, federal court’s have subject-matter jurisdiction over issues governed by federal law( such as bankruptcy,copyright, patent, and federal tax matters) and state of courts have subject matter jurisdiction isues governed by state laws (such as professional liscencing and state tax matters.’;; Personal jurisdiction is, in general, determined by the residence of the parties. A court has personal jurisdiction over a case if the defendant is a resident of the state in which the court is located.

3. The advantages and disadvantages of issuing business process patents have been hotly debated by legal scholars and business people. One compromise proposal advanced by Jeff Bezos, founder of Amazon.com, is to allow the issuance of business patents, but only allow them to be effective for a short time, perhaps two or three years. In about 300 words, present logical and factual arguments that support the issuance of such limited-term business process patents. Answer: Responses will vary but the following issues should be considered: Business-method patents, such as Amazon's 1-Click technology, may be one of the most lucrative -- and hotly contested -- groups of e-business-related patents to have emerged in the last several years. According to legal Web site NOLO.com, a business-method patent is some combination of software and business methodology that can be categorized as a specific process. Once secured, these patents, like other types of patents, remain under the creator's control for nearly two decades. That means Amazon receives a fee every time another e-commerce vendor licenses its checkout process.

5. Define product disparagement. In two or three paragraphs, describe a situation that would be an example of product disparagement. Answer: Product disparagement deals with the `badmouthing' of a particular product. A good example would be Oprah Winfrey discussing her issues with beef. A group of Texas cattle ranchers sued her for her talk show discussion of mad cow disease in 1998.

5. In about 300 words, explain the idea of nexus. Why is it an important concept in state and international taxation? In what ways is it similar to jurisdiction? Answer: The connection between a taxpaying entity and a government is known as a nexus. It's an important concept, because if a nexus is established, then taxes must be collected and paid. It's similar to jurisdiction because of the government-seller connection.

1. Use Google or your favorite Web search engine to obtain a list of Web pages that include the words "privacy statement." Visit the Web pages on the search results list until you find a page that includes the text of a privacy statement. Print the page and turn it in with your answers to the following questions: Does the site follow an opt-in or opt-out policy (or is the policy not clearly stated in the...
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