Q.1 Which of the following laws primarily governs electronic contracts in most countries?
Civil Code
Electronic Transactions Act
Criminal Code
Labour Law
Explanation - Electronic Transactions Acts or equivalent legislations provide legal recognition for electronic contracts and signatures.
Correct answer is: Electronic Transactions Act
Q.2 In e-commerce, what is 'clickwrap agreement'?
A verbal contract over the phone
A contract where the user clicks 'I agree' to terms online
A handwritten contract scanned online
An agreement signed via postal mail
Explanation - Clickwrap agreements are electronic contracts where consent is given by clicking a button or checking a box.
Correct answer is: A contract where the user clicks 'I agree' to terms online
Q.3 Which body usually regulates consumer protection in e-commerce in India?
SEBI
RBI
Department of Consumer Affairs
Ministry of Corporate Affairs
Explanation - Consumer protection in e-commerce is overseen by the Department of Consumer Affairs, including rules for unfair trade practices online.
Correct answer is: Department of Consumer Affairs
Q.4 What is the main purpose of the GDPR in e-commerce?
To regulate online payments
To protect personal data of individuals
To control advertising rates
To standardize shipping charges
Explanation - The General Data Protection Regulation (GDPR) ensures individuals’ personal data is handled lawfully in the digital economy.
Correct answer is: To protect personal data of individuals
Q.5 Which of the following is an example of a digital intermediary liability rule?
Section 230 of the US Communications Decency Act
Income Tax Act
Companies Act
Indian Penal Code
Explanation - Section 230 provides online platforms immunity from liability for content posted by third-party users, shaping e-commerce platforms’ responsibilities.
Correct answer is: Section 230 of the US Communications Decency Act
Q.6 Which type of e-commerce model involves transactions between businesses?
B2B
B2C
C2C
G2C
Explanation - B2B (Business-to-Business) involves commercial transactions between businesses rather than individual consumers.
Correct answer is: B2B
Q.7 Which regulation requires online marketplaces to display transparent pricing and return policies?
Consumer Protection (E-Commerce) Rules 2020
IT Act 2000
Competition Act 2002
Companies Act 2013
Explanation - These rules ensure transparency in pricing, return/refund policies, and proper disclosure by e-commerce entities.
Correct answer is: Consumer Protection (E-Commerce) Rules 2020
Q.8 Which of the following is considered a legal challenge for cross-border e-commerce?
Uniform tax rates
Currency exchange risk
Jurisdiction over disputes
All of the above
Explanation - Cross-border e-commerce involves legal complexities like taxation, dispute resolution, and currency exchange regulations.
Correct answer is: All of the above
Q.9 Under e-commerce law, what is a 'digital signature'?
A handwritten signature scanned online
A secure electronic method of signing digital documents
A signature made using a mouse only
A signature required for postal services
Explanation - Digital signatures ensure authenticity and integrity of electronic documents, often using encryption technology.
Correct answer is: A secure electronic method of signing digital documents
Q.10 Which law in India governs cybersecurity and online offences?
Information Technology Act 2000
Companies Act 2013
Contract Act 1872
Consumer Protection Act 2019
Explanation - The IT Act 2000 addresses cybersecurity, electronic records, and cybercrimes in digital commerce.
Correct answer is: Information Technology Act 2000
Q.11 In e-commerce, what is the 'duty of care' for platform providers?
To manufacture products themselves
To ensure safe use of the platform and prevent harm
To provide free services
To regulate postal services
Explanation - E-commerce platforms must exercise reasonable care to protect users from illegal content or fraudulent activities.
Correct answer is: To ensure safe use of the platform and prevent harm
Q.12 Which concept allows consumers to cancel an online purchase within a specific period?
Right of Return
Express Warranty
Unfair Contract Terms
Consumer Consent
Explanation - Consumer protection laws in e-commerce provide a 'cooling-off period' allowing users to return products within a defined time frame.
Correct answer is: Right of Return
Q.13 Which legal issue is raised by using personal data for targeted advertising in e-commerce?
Data privacy and consent
Intellectual property infringement
Trademark violation
Contract breach
Explanation - Using consumer data for advertising requires adherence to privacy laws like GDPR to obtain consent and protect personal data.
Correct answer is: Data privacy and consent
Q.14 Which of the following is a responsibility of e-commerce companies under the Consumer Protection (E-Commerce) Rules 2020?
Timely refunds
Accurate product description
Customer grievance redressal
All of the above
Explanation - The rules mandate e-commerce entities to ensure timely refunds, accurate information, and proper grievance redressal mechanisms.
Correct answer is: All of the above
Q.15 Which type of e-commerce involves transactions between consumers directly?
B2C
B2B
C2C
G2C
Explanation - Consumer-to-Consumer (C2C) platforms allow users to sell goods/services directly to other consumers, e.g., online marketplaces.
Correct answer is: C2C
Q.16 What is the main concern addressed by anti-spam laws in digital commerce?
Excessive taxation
Unsolicited electronic communication
Website downtime
Data encryption
Explanation - Anti-spam laws regulate unwanted commercial messages sent electronically to protect consumers.
Correct answer is: Unsolicited electronic communication
Q.17 Which law in India regulates intermediaries like Amazon or Flipkart?
Information Technology Act 2000
Companies Act 2013
Contract Act 1872
Sale of Goods Act 1930
Explanation - The IT Act defines liabilities and safe harbor provisions for intermediaries in e-commerce.
Correct answer is: Information Technology Act 2000
Q.18 What is the legal significance of 'terms and conditions' on an e-commerce website?
They are merely suggestions
They form a binding contract if accepted
They are optional advertising statements
They are used for tax purposes only
Explanation - Once a user accepts the terms, it legally binds both parties under contract law.
Correct answer is: They form a binding contract if accepted
Q.19 In the context of digital economy law, 'net neutrality' refers to:
Charging different rates for different websites
Equal treatment of all internet traffic
Banning certain websites
Prioritizing government websites
Explanation - Net neutrality ensures all online content is treated equally without discrimination or preferential treatment.
Correct answer is: Equal treatment of all internet traffic
Q.20 Which international framework influences e-commerce taxation globally?
OECD Guidelines
UN Charter
WTO GATT Agreement
Paris Agreement
Explanation - OECD provides principles for taxing digital transactions and cross-border e-commerce activities.
Correct answer is: OECD Guidelines
Q.21 What is the key feature of a 'smart contract' in e-commerce?
It can execute automatically when conditions are met
It requires manual approval by lawyers
It is always printed on paper
It cannot be enforced legally
Explanation - Smart contracts use blockchain technology to self-execute without intermediaries once pre-defined conditions are fulfilled.
Correct answer is: It can execute automatically when conditions are met
Q.22 Which of the following is considered a cybercrime in digital commerce?
Phishing to steal consumer data
Spamming promotional emails
Website hacking
All of the above
Explanation - Cybercrimes include illegal acts like phishing, hacking, and unsolicited spam in digital commerce.
Correct answer is: All of the above
Q.23 Which type of e-commerce involves government providing services online to citizens?
B2B
G2C
C2C
B2C
Explanation - Government-to-Citizen (G2C) e-commerce enables online access to public services like tax filing or license renewal.
Correct answer is: G2C
Q.24 Which principle requires e-commerce companies to not discriminate against users in delivering digital services?
Net Neutrality
Data Localization
Digital Signature
Consumer Consent
Explanation - Net neutrality ensures all internet users have equal access to content without favoritism.
Correct answer is: Net Neutrality