Q.1 Which of the following is primarily regulated under E-Commerce laws?
Physical store sales
Online transactions
Street vendors
Telephone marketing
Explanation - E-Commerce laws primarily focus on online commercial activities, including buying, selling, and digital contracts.
Correct answer is: Online transactions
Q.2 The IT Act 2000 in India mainly deals with:
Environmental issues
Digital signatures and cybercrime
Real estate transactions
Taxation of goods
Explanation - The IT Act 2000 governs legal recognition of electronic records, digital signatures, and cyber offenses in India.
Correct answer is: Digital signatures and cybercrime
Q.3 Which of the following is a key requirement for a valid electronic contract?
Physical signatures
Mutual consent, offer and acceptance
Government approval
Notarization
Explanation - An electronic contract must satisfy general contract principles: offer, acceptance, and mutual consent.
Correct answer is: Mutual consent, offer and acceptance
Q.4 Which law primarily protects consumers in e-commerce transactions in India?
Consumer Protection Act 2019
Companies Act 2013
Indian Penal Code
Income Tax Act
Explanation - The Consumer Protection Act 2019 includes specific provisions for e-commerce and protects online buyers from unfair practices.
Correct answer is: Consumer Protection Act 2019
Q.5 Digital signatures are used to:
Encrypt emails
Authenticate the sender and maintain integrity
Create a PDF document
Track website traffic
Explanation - Digital signatures verify the authenticity of the sender and ensure that the data is not altered.
Correct answer is: Authenticate the sender and maintain integrity
Q.6 Which of the following is considered a cybercrime under E-Commerce laws?
Unauthorized access to accounts
Filing a tax return
Signing a lease
Trading physical goods legally
Explanation - Unauthorized access, hacking, identity theft, and phishing are considered cybercrimes under E-Commerce and IT laws.
Correct answer is: Unauthorized access to accounts
Q.7 In e-commerce, 'click-wrap' agreements refer to:
Contracts signed physically
Online agreements accepted by clicking a button
Verbal agreements
Email communications
Explanation - Click-wrap agreements are digital contracts where users agree to terms by clicking 'I Agree'.
Correct answer is: Online agreements accepted by clicking a button
Q.8 Which of the following ensures privacy in e-commerce transactions?
Data protection laws
Physical store policies
Traffic rules
Consumer loyalty programs
Explanation - Data protection and privacy laws regulate collection, storage, and usage of personal data in online transactions.
Correct answer is: Data protection laws
Q.9 Which regulatory body in India monitors e-commerce companies?
RBI
SEBI
Department of Consumer Affairs
Ministry of Electronics and IT
Explanation - The Ministry of Electronics and IT oversees legal compliance and regulation of e-commerce platforms in India.
Correct answer is: Ministry of Electronics and IT
Q.10 Which is a common legal issue faced by e-commerce businesses?
Copyright infringement
Manufacturing defects
Urban planning violations
Motor vehicle compliance
Explanation - E-commerce platforms may face copyright and intellectual property disputes due to content, software, or media usage.
Correct answer is: Copyright infringement
Q.11 Which of the following is required for secure online payment?
Encryption technology
Physical check
Cash on delivery only
Manual ledger entries
Explanation - Encryption ensures secure transmission of payment data and protects sensitive financial information online.
Correct answer is: Encryption technology
Q.12 E-commerce platforms are required to provide:
Accurate product information
Free shipping always
Physical stores
Government grants
Explanation - Platforms must disclose truthful product details, pricing, and terms to comply with consumer protection regulations.
Correct answer is: Accurate product information
Q.13 Which term describes illegal selling of counterfeit products online?
Phishing
Counterfeiting
Encryption
Click-fraud
Explanation - Counterfeiting involves selling fake or unauthorized copies of goods, which is illegal under IP and e-commerce laws.
Correct answer is: Counterfeiting
Q.14 Which law governs electronic contracts in India?
Indian Contract Act 1872
IT Act 2000
Companies Act 2013
Consumer Protection Act 2019
Explanation - The IT Act 2000 provides legal recognition to electronic contracts, digital signatures, and electronic records.
Correct answer is: IT Act 2000
Q.15 Which of the following is an example of a digital business liability?
Defective website causing data loss
Factory machine malfunction
Traffic violation
Expired food product
Explanation - Digital businesses may be liable for damages caused due to security breaches, website defects, or data loss.
Correct answer is: Defective website causing data loss
Q.16 Which type of e-commerce model involves transactions between businesses?
B2B
B2C
C2C
C2B
Explanation - B2B (Business-to-Business) refers to transactions between companies, such as wholesalers and retailers.
Correct answer is: B2B
Q.17 The primary purpose of GDPR is to:
Protect personal data of individuals
Regulate product pricing
Govern taxation
License e-commerce platforms
Explanation - The General Data Protection Regulation (GDPR) is a European law protecting individual data privacy.
Correct answer is: Protect personal data of individuals
Q.18 Which of the following constitutes a cyber offense?
Hacking
Opening a bank account
Registering a company
Purchasing a smartphone
Explanation - Hacking involves unauthorized access to computers, which is a punishable offense under cyber laws.
Correct answer is: Hacking
Q.19 An online marketplace is liable for:
Third-party seller fraud if notified
Traffic violations
Real estate mismanagement
Manufacturing defects
Explanation - Marketplaces may be held accountable if they are aware of fraudulent activity by third-party sellers and fail to act.
Correct answer is: Third-party seller fraud if notified
Q.20 Which document is considered an electronic record under IT law?
Email confirmation
Handwritten note
Printed magazine
Physical contract only
Explanation - Electronic records include emails, online contracts, and other digital communications recognized by IT law.
Correct answer is: Email confirmation
Q.21 Phishing in e-commerce refers to:
Fraudulent attempts to obtain sensitive information
Quick delivery service
Discount campaigns
Legal advertisement
Explanation - Phishing involves sending fake emails or messages to steal login credentials, credit card info, or personal data.
Correct answer is: Fraudulent attempts to obtain sensitive information
Q.22 Which of the following ensures authenticity in digital transactions?
Digital signature
Cash payment
Physical notarization
Barcode scanning
Explanation - Digital signatures verify the identity of parties and ensure integrity of electronic transactions.
Correct answer is: Digital signature
Q.23 Online consumer complaints can be filed under:
Consumer Protection Act 2019
IT Act 2000
Companies Act 2013
Indian Penal Code
Explanation - Consumers can file complaints regarding online transactions under the Consumer Protection Act, including e-commerce disputes.
Correct answer is: Consumer Protection Act 2019
Q.24 Cookies on e-commerce websites are primarily used for:
Tracking user behavior and personalization
Tax calculation
Legal documentation
Offline advertising
Explanation - Cookies store user preferences, help in website personalization, and improve user experience.
Correct answer is: Tracking user behavior and personalization
Q.25 Which of the following is essential for compliance with digital business laws?
Data security measures
Opening multiple physical stores
Hiring sales staff
Providing free products
Explanation - E-commerce companies must implement security measures to protect consumer data and comply with laws.
Correct answer is: Data security measures