A Company Has Recently Begun to Provide Online Services to Consumers

question 51

Multiple Choice

A company has recently begun to provide online services to consumers. In order to protect itself from the risk of liability and in order to improve the quality of its services, the company has asked you, as an online consumer protection expert, to provide advice on best practices. Which of the following is TRUE?

• A) With the exception of the territories, every Canadian jurisdiction has adopted its own version of PIPEDA.
• B) The company is legally obligated to comply with the minimum standards established in the Canadian Code for Consumer Protection in Electronic Commerce.
• C) The company should offer services in only one language in order to avoid the risk of confusion.
• D) The Canadian Code for Consumer Protection in Electronic Commerce is a federal statute.
• E) none of the above

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Definitions:

Fixed Manufacturing Overhead

Consistent, recurring costs that do not vary with the level of production or sales, such as salaried personnel wages and factory lease payments.

Total Overhead Cost

The sum of all indirect costs incurred by a business in the production process, which are not directly tied to a specific product or service.

Maintenance Cost

The financial outlay required to maintain assets in efficient working condition over their useful life.

Committed Fixed Cost

Long-term fixed costs that a business incurs, such as lease agreements or long-term contracts with suppliers, which are not easily altered in the short term.