Deceitful Practices and Fraud Are Ongoing Concerns for Those Transacting

question 53

Multiple Choice

Deceitful practices and fraud are ongoing concerns for those transacting business on the Internet. Pat has recently been the victim of such a scam. He gets into a heated discussion with his friend over the application of current consumer protection laws to online transactions. Which of the following statements is correct?

• A) While case law applies to online activities, statute law-such as sale of goods legislation-does not apply to such transactions.
• B) Although new legislation may be enacted in the future, general consumer protection legislation has yet to be extended to online transactions in any Canadian jurisdictions.
• C) Provinces are adopting federal Uniform Electronic Commerce Act guidelines.
• D) Provincial consumer protection legislation has been ineffective in protecting consumers with respect to Internet transactions.
• E) Consumer protection law in respect of online transactions is governed by the federal Universal Internet Transactions Act (UITA).

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Definitions:

Trade Credit

It is a type of commercial financing in which a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Fundamental Benefit

A primary or essential advantage that is intrinsic to a product, service, or activity.

ACP

Average Collection Period (ACP) is a financial metric that measures the average number of days it takes for a company to collect payments from its customers after a sale has been made.

Bad Debts

Accounts receivable that a company does not expect to collect and writes off as a loss.