Exam

Question 1

What is Law and how it is different from other norms?

Answer 1

• Human interaction is based on rules.
• Norms are based on Ethics, Morality, etc.
• Legal rules are established by the state and can be enforced
• Law must be issued in a predefined way (e.g. federal laws: government bill by Federal
  Government → National Assembly + Federal Assembly → Signature → publication in Federal
  Law Gazette in Austria)
• Must be obeyed, irrespective of whether it is “just“ or factually ignored (speed limit)
• Must be sufficiently determined means that, in order for a norm to be considered a legal norm, it must have a clear and specific definition or meaning.

Question 2

What are technical rules and ISO and ÖNORM

Answer 2

Technical rules are standards that specify technical requirements and guidelines for products, processes, or services in a particular industry or sector. They are usually developed by technical experts and standardized organizations such as ISO (International Organization for Standardization) and ÖNORM (Österreichische Norm) in Austria.

ISO is a global, non-governmental organization that develops and publishes standards for a wide range of industries, including technology, manufacturing, and service sectors. ISO standards provide a common set of requirements and guidelines for products, processes, and services, ensuring their quality, safety, and interoperability.

ÖNORM is a similar organization based in Austria, responsible for developing and publishing technical standards in the country. Like ISO, ÖNORM standards help to ensure that products, processes, and services meet minimum technical requirements, and they are often referenced by regulators and industry organizations.

Question 3

What are the differences between public and private law?

Answer 3

Public law and private law are two broad categories of law that differentiate between laws that regulate the relationship between individuals and the state, and laws that regulate the relationship between individuals themselves.

Public law refers to laws that deal with the relationship between individuals and the state. It encompasses a wide range of legal areas, including constitutional law, administrative law, criminal law, and international law. Public law is concerned with protecting the rights of citizens and ensuring that the state acts within the limits of its authority.

Private law, on the other hand, refers to laws that regulate the relationship between individuals themselves. It encompasses areas of law such as contract law, property law, tort law, and family law. Private law is concerned with protecting the rights and interests of individuals and resolving disputes between them.

Question 4

Examples of public law?

Answer 4

1. Federal Constitutional Law
2. General Administrative Procedure Act 1991
3. Administrative Penalty Act 1991
4. Industrial Code 1994
5. Data Protection Act

Question 5

Examples of private law?

Answer 5

1. Austrian Civil Code
2. Tenancy Law
3. Marriage Act
4. Consumer Protection Law

Question 6

What is Common Law

Answer 6

In a common law scheme, the courts play a central role in developing and interpreting the law, and their decisions in individual cases create precedents that are binding on lower courts and serve as guidance for future cases.

Question 7

What is private international law?

Answer 7

Private international law, also known as conflict of laws, is a branch of law that deals with legal disputes that have a foreign element. This means that the parties involved in the dispute are from different countries or that the events giving rise to the dispute occurred in different countries.

Private international law provides the rules and principles for determining which country’s law should apply to a particular legal dispute and how to resolve conflicts between the laws of different countries. This can be particularly important in matters such as cross-border contracts, torts, and inheritance, where the laws of different countries may apply.

Question 8

Examples of private international law?

Answer 8

Rome I Regulation
Rome II Regulation

Question 9

What is the defination of AI from McCarthy’s point of view?

Answer 9

McCarthy (1956, 2007): „[AI] is the science and engineering of making intelligent machines, especially intelligent computer programs“

Question 10

What is the defination of AI from Rich’s point of view?

Answer 10

Rich (1983): „Artificial Intelligence is the study of how to make computers do things at which, at the moment, people are better“.

Question 11

What is AI HLEG?

Answer 11

AI HLEG is the short form for the High-Level Expert Group on Artificial Intelligence established by the European Commission. The group was created in 2018 to provide expert advice and guidance on the development and deployment of AI technologies in the European Union (EU).

Question 12

What is the vision of the European Commission on AI?

Answer 12

1. Increase public and private investments in AI
2. Changes in society and economy
3. Ensure an appropriate ethical and legal framework to protect and strengthen European values

Question 13

What is the definition of AI on a europian level which is given by HLEG?

Answer 13

Artificial intelligence (AI) systems are software (and possibly also hardware) systems designed by humans that, given a complex goal, act in the physical or digital dimension by perceiving their environment through data acquisition, interpreting the collected structured or unstructured data, reasoning on the knowledge, or processing the information, derived from this data and deciding the best action(s) to take to achieve the given goal. AI systems can either use symbolic rules or learn a numeric model, and they can also adapt their behaviour by analysing how the environment is affected by their previous actions.

Question 14

Why regulating AI matters?

Answer 14

Safety risks:
* Personal injuries
* Damage to property

Fundamental rights:
* non-discrimination
* free speech
* private life

Question 15

How is the usage-base classification of AI system?

Answer 15

1. Minimal Risk
2. Limited Risk (AI systems with specific transparency obligations)
3. High Risk
4. Unacceptable Risk

Question 16

What is the difination of AI in the proposal of the europian commission for an AI regulation?

Answer 16

‘artificial intelligence system’ (AI system) means software that is developed with one or more of the techniques and approaches listed in Annex I and can, for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations, or decisions influencing the environments they interact with;

Annex I

a) Machine learning approaches, including supervised, unsupervised and reinforcement learning, using a wide variety of methods including deep learning;

b) Logic- and knowledge-based approaches, including knowledge representation, inductive (logic) programming, knowledge bases, inference and deductive engines, (symbolic) reasoning and expert systems;

c) Statistical approaches, Bayesian estimation, search and optimization methods.

Question 17

What are the known problems of AI?

Answer 17

Bias :
The accuracy of a system depends on the (training) data used to develop and improve the AI.
Example : TAY twitter chatbot which was working fine at first but then it was giving terrifying answers.

Blackbox:

Question 18

How bias in AI is in conflict with law?

Answer 18

Federal Constitutional Law (B-VG)

Article 7 (1) All nationals are equal before the law. Privileges based upon birth, sex, estate, class or religion are excluded. No one shall be discriminated against because of his disability.

The Republic (Federation, provinces and municipalities) commits itself to ensuring the equal treatment of disabled and non-disabled persons in all spheres of everyday life.

Question 19

What are the automated contracting?

Answer 19

Event triggered on pre-defined conditions

Question 20

What are the levels of driving automation?

Answer 20

Level 0 to 5 in which from 0 to 2 you are the driver and from 3 to 5 you are not driving

In levels 0 to 2 you should always supervise support features and ypu need to steer, brake or accelerate whenever needed and automationa features involves giving warnings and momentary assistance like automatic emergency brake, blind spot warning, lane departure warning.

In level 3 you must drive whenever features do require you but from level 4 to 5 there will be no request to take control.

Between level 3 to 4 automated driving is available only in specific conditions but in level 5 it works in all conditions.

Question 21

What is the convention on road traffic?

Answer 21

It 1968 convension says that any vehicle must have a driver and the driver must be a person but and amendment to this convension says that the driver could be an automated driving system in compliance with domestic legislation.

Question 22

What specifications should Autonomous car have?

Answer 22

Specific requirements relating to automated vehicles and fully automated vehicles:

a) systems to replace the driver’s control of the vehicle, including signalling, steering, accelerating and braking;

(b) systems to provide the vehicle with real-time information on the state of the vehicle and the surrounding area;

(c) driver availability monitoring systems;

(d) event data recorders for automated vehicles;

(e) harmonised format for the exchange of data for instance for multi-brand vehicle platooning;

(f) systems to provide safety information to other road users.

Question 23

Difference between criminal law and tort law?

Answer 23

The main difference between criminal=public law and tort=private law is that criminal law is designed to protect society as a whole and to maintain public order, while tort law is designed to provide compensation for individuals who have suffered harm due to the actions of others.

Question 24

What is “Casum sentit duminum”-principle?

Answer 24

This principle is often used in the context of tort law, and it refers to the idea that the owner of property is responsible for any harm or injury that occurs on their property.

Under the “casus sentit dominum” principle, the owner of property has a legal obligation to maintain their property in a safe and secure manner, and to take reasonable steps to prevent harm or injury to others who may enter their property. This includes a duty to repair or remove any dangerous conditions on the property, and to take steps to warn others of any potential hazards.

Question 25

What are Fault-based liability requirements in Austrian tort law?

Answer 25

This is an unharmonised concept :
* Compensable Damage
* Causation
* Wrongfulness
* Fault

Question 26

What does Compensable Damage mean?

Answer 26

1. Pecuniary damages = actual harm suffered à compensable, e.g.
   - personal injuries
   - damage to property
2. Lost profit: not compensable, except for
   - if caused grossly negligent
   - in business-to-business relationships
3. Immaterial damages: not compensable, except for where explicitly provided by law
   - à e.g. § 1325 ABGB: compensation for pain and sufferings
   - Pure “nominal” damages

Question 27

What does lost of profit damage mean?

Answer 27

Lost profit: not compensable, except for
- if caused grossly negligent
- in business-to-business relationships

Question 28

What does immatrial damages mean?

Answer 28

Immaterial damages: not compensable, except for where explicitly provided by law
- à e.g. § 1325 ABGB: compensation for pain and sufferings

Question 29

What does pure nominial damage mean?

Answer 29

A kind of damage in which there is a breach of law or contract but actually there is no evidance of financial loss and in this case the plaintiff can sue someone for that breach.

Question 30

What does wrongfullness mean?

Answer 30

Violation of:
- contracts
- absolutely protected rights (physical integrity, freedom, property, reputation…)
- protective laws, or
- duties to protect against risks one has established

Question 31

What are the different degrees of fault?

Answer 31

Different degrees of fault:
- Intent : What intention
- Gross negligence
- Slight negligence

Question 32

Required subjective capability of being at fault?

Answer 32

1. individuals > 14 years
   - partial liability for minors from 7 to 14 years
   - no liability for actions resulting form mental illness (e.g. schizophrenia, dementia etc.)
2. legal entities (+ their organs)

Question 33

What things are considered as stricted liability in Austrian tort law?

Answer 33

• Railway and motor vehicles liability
• Product liability

Question 34

What is the burden of proof for a fault?

Answer 34

General rule: Claimant must proof all facts establishing his/her claim, including respondent’s fault
* For contractual damages à reversal of the burden of proof, § 1298 ABGB: “Whoever alleges to have been inculpably prevented from performing his contractual or legal obligations has to provide evidence. […]”

Question 35

How is the liability for servants?

Answer 35

§ 1313a ABGB: “Whoever is obliged to perform [a service] to someone else is liable to him, as for his own, for the fault of his legal representatives, and of any person who he employs to deliver [the service].”

§ 1315 ABGB: “Generally the person who employs an incapable or knowingly a dangerous person for the procurement of his affairs is liable for the damage which he [i.e. the incapable or dangerous person] caused to a third party in such capacity.”

Question 36

Producer liability which has a strict liability … equal to merchants liability.

Answer 36

is not

Question 37

What definition does Product Liability Act in Article 3 gives about Producer?

Answer 37

‘Producer’ means the manufacturer of a finished product, the producer of any raw material or the manufacturer of a component part and any person who, by putting his name, trade mark or other distinguishing feature on the product presents himself as its producer.”

Question 38

What definition does Product Liability Act in Article 3 gives about Defective?

Answer 38

A product is defective when it does not provide the safety which a person is entitled to expect, taking all circumstances into account, including:

(a) the presentation of the product;
(b) the use to which it could reasonably be expected that the product would be put;
(c) the time when the product was put into circulation.

A product shall not be considered defective for the sole reason that a better product is subsequently put into circulation.”

◦ Design defect
◦ Manufacturing defect
◦ Failure to warn

Question 39

What are the damages covered in liability directive?

Answer 39

Personal injury
- to be compensated in full
- no restriction to consumers

Damage to property
- tangible goods other than the product itself
- deductible of EUR 500 (= damaged party must pay first € 500,- him/herself)
- no compensation for damages to products in (predominantly) non-private use

Question 40

What is Exclusion of Liability § 8 PHG?

Answer 40

No liability for those damages which is caused by risks of development and could not be prevented at the time of development because of the deficiency of the technological development at that time

Question 41

How is the time limitation of liability?

Answer 41

The plaintiff must sue a company for defective product by 3 years after he became aware of defect or damage and the producer and 10 years after the product put on sale.

Question 42

Explain about liability of railway and motor vehicles?

Answer 42

It is not harmonised in EU for example in Austria strict liability applies for both personal injury and damage to property while in UK only Fault-based liability applies and in Spain only strict liability for personal injuries is applied.

But the compulsory insurance for motor vehicles based in EU is something harmonised.

Question 43

What are the reasons for strict liability for rail and motor vehicle accidents in Austria?

Answer 43

speed -> danger
no prohibition, but strict liability -> liability without fault

• Accident (§ 1): sudden event causing damage

Question 44

Who can ask for compensation in an accident?

Answer 44

• Injured person (Not the driver)
• Owner of damaged property

Question 45

Who is liable for compensation in an accident?

Answer 45

• Keeper (not necessarily: owner)
• (Potential) joint fault-liability (!) of the driver
• Compulsory liability insurance

Question 46

What is the Exclusion of liability § 9 EKHG for railway or motor vehicle accidents?

Answer 46

No liability for accidents due to “inevitable events” +
* keeper adhered to “highest standard of care” -> more than just “no misconduct”
* no defect of the vehicle (e.g. mechanical condition, software)

Question 47

What is GDPR and what are the reasons for its introduction?

Answer 47

General Data Protection Regulation
Aim: Harmonization of the European Regulations on Data Protection

Reasons for introduction:
◦ technological advances
◦ increased data exchange within the European Single Market
◦ whistleblower
◦ etc

Question 48

What are the implication of infringement in GDPR?

Answer 48

High fines : up to 10 to 20 milion euro and in case of undertaking yp to 2 or 4 percent of total worlwide annual turn over ot the preceding financial year.

Also compensation and liability of tangible harms

Question 49

How is personalized data is defined?

Answer 49

Any information relating to an identified or identifiable natural person (‘data subject’);

An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as
■ a name,
■ an identification number,
■ location data,
■ an online identifier or
■ to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person

Question 50

What are the exceptions of GDPR liability

Answer 50

Anonymized data (e.g. aggregated personal data which cannot be tracked back to an individual data
subject with reasonable effort). Parameters:
■ technology available at the time of processing
■ costs of identification
■ time necessary for identification

Data of deceased persons (!): the GDPR only applies to data of living natural persons

Question 51

How is data processing defined?

Answer 51

Any operation or set of operations which is performed on personal data or on sets of personal data, whether or not by automated means.

Question 52

Who is the controller in the term of data protection?

Answer 52

CONTROLLER determines the purposes and means of the processing of personal data

Question 53

Who is the processor in the term of data protection?

Answer 53

Processes personal data on behalf of the controller

Question 54

What can be the content of a data processing agreement?

Answer 54

■ Processing is only allowed if based on documented instructions from the controller

■ Persons authorized to process data have committed themselves or are obliged to confidentiality

■ All technical and organizational measures pursuant to Art 32 GDPR have been taken

■ Obligation to assist the controller in certain areas (eg exercising data subjects’ rights, DPIA, data breach …)

■ Delete or return all data at the choice of controller after the end of
service provision

■ Allow inspections of the controller

Question 55

Principles of GDPR for controller accountability?

Answer 55

• lawfulness, fairness and transparency
• purpose limitation
• data minimization
• accuracy
• storage limitation
• integrity and confidentiality

Question 56

Violation of data protection law leads to?

Answer 56

• Fines
• Compensation
• Prohibition of processing
• Loss of reputation

Question 57

How is the territorial scope of GDPR?

Answer 57

The GDPR applies to the processing of personal data in the context of the activities of an establishment of a controller or a processor in the Union, regardless of whether the processing takes place in the Union or not.

Question 58

What are the legal bases for simple data processing?

Answer 58

• Consent
• Performance of a contract
• Legitimate interests pursued by the controller or by a third party

Question 59

What are the legal bases for special categories of data processing?

Answer 59

• Explicit Consent
• Establishment, Exercise or Defence of legal claims
• Archiving Purposes in the public interest, Scientific or Historical Research Purposes or Statistical Purposes

Question 60

Who is data protection officer (DPO)?

Answer 60

Has to be designated by a controller or processor under certain prerequisites, especially if
◦ the core activities of the controller or the processor consist of processing operations which, by virtue of
their nature, their scope and/or their purposes, require regular and systematic monitoring of data subjects
on a large scale; or
◦ core activities of the controller or the processor consist of processing on a large scale of special
categories of data pursuant to Article 9 or personal data relating to criminal convictions and offences
referred to in Article 10

Position and Duties:

◦ independent and qualified
◦ supported by Controller or Processor
◦ reports only to highest management level
◦ point of contact for data subjects and data protection authority
◦ either internal or external DPO
◦ informs and advises the controller or the processor and their employees about data protection law
◦ monitors compliance with data protection law
◦ provides advice as regards the data protection impact assessment

Question 61

Is transmission of data to a third country allowed?

Answer 61

A data transfer to a third country is allowed, if (simplified)
* There is an adequacy decision (statement from the European Commission that the data protection
standards of the third country are comparable to those of the European Union) – e.g. Israel; OR
* The controller or processor has concluded a contract with the foreign controller or processor that
include the Standard Data Protection Clauses published by the European Commission; OR
* There is a specific situation where such transfer is allowed, e.g. if the data subject has given explicit
consent; OR
* The Data Protection Authority has allowed for such transmission.

Question 62

What is DPIA?

Answer 62

Where a type of processing using new technologies, and taking into account the nature, scope, context and purpose of the processing, is likely result in a high risk to the rights and freedoms of natural persons, the controller shall, prior to the processing, carry out an assesment of the impact of the envisaged processing operations on the protection of personal data.

Question 63

What is privacy by design?

Answer 63

It means that data protection requirements must be taken to account in the development and deployment of IT systems by choosing the suitable technical and organizational measures. The main objective is to implement data processing principles pursuant to Art. 5 para 1. DSGVO

Question 63

What is privacy by design?

Answer 63

It means that data protection requirements must be taken to account in the development and deployment of IT systems by choosing the suitable technical and organizational measures. The main objective is to implement data processing principles pursuant to Art. 5 para 1. DSGVO

Question 64

What is privacy by default?

Answer 64

■ Creation of suitable technical and organizational measures to ensure that only those personal data
are processed by default that are necessary for the respective purpose.
■ eg: no pre-checked checkboxes when requesting consent for processing; webcams without
predefined or insecure passwords.

Question 65

Explain the duty to inform data subjects

Answer 65

The data controller is obliged to provide data subjects with information on certain
aspects relating to the processing of their personal data.
* Precise, transparent, comprehensible, easily accessible form; clear and simple
language, especially for children.
* In writing or in any other form, including electronic means where appropriate
* Free of charge

• Exceptions from this duty (e.g. health professionals who are processing data in the
  course of their treatment, e.g. for the purpose of documentation)

Question 66

What are the data subject rights?

Answer 66

• Right of access: the right to access personal data that is being processed.
• Right to rectification: the right to have inaccurate personal data corrected.
• Right to erasure: the right to have personal data deleted under certain circumstances.
• Right to restrict processing: the right to restrict the processing of personal data under certain circumstances.
• Right to data portability: the right to receive personal data in a structured, commonly used, and machine-readable format.
• Right to object: the right to object to the processing of personal data for certain purposes.
• Right to not be subject to a decision based solely on automated processing: the right to not be subject to a decision that is based solely on automated processing, including profiling, which produces legal effects concerning the individual.

Question 67

What are the exception for the right for not being a subject of automated data processing?

Answer 67

Exceptions:
* if necessary for entering into or performance of a contract (credit checks);
* authorized by Union or member state law; or
* explicit consent of data subject.

Question 68

What is involved with MDR?

Answer 68

The MDR regulates in particular:

• (i) the placing on the market
• (ii) the making available
• (iii) the putting into service in the EU of medical devices intended for human use and their accessories
• (iv) the clinical investigation of medical devices.

Question 69

What is the definition of medical device?

Answer 69

Medical device means any instrument, apparatus, appliance, software, implant, reagent,
material or other article intended by the manufacturer to be used, alone or in combination, for
human beings for one or more of the following specific medical purposes:

• ◦ diagnosis, prevention, monitoring, prediction, prognosis, treatment or alleviation of disease,
• ◦ diagnosis, monitoring, treatment, alleviation of, or compensation for, an injury or disability,
• ◦ investigation, replacement or modification of the anatomy or of a physiological or pathological process or state,
• ◦ providing information by means of in vitro examination of specimens derived from the human body, including organ, blood and tissue donations, and which does not achieve its principal intended action by pharmacological, immunological or metabolic means, in or on the human body, but which may be assisted in its function by such means. […]

Question 70

When a software is counted as a medical device?

Answer 70

It is necessary to clarify that software in its own right, when specifically intended by the manufacturer to be used for one or more of the medical purposes set out in the definition of a medical device, qualifies as a medical device, while software for general purposes, even when used in a healthcare setting, or software intended for life style and well-being purposes is not a medical device. The qualification of software, either as a device or an accessory, is independent of the software’s location or the type of interconnection between the software and a device.

Question 71

What consideration must be made after developing a medical device?

Answer 71

• Classification of medical devices based on their risk pursuant to Appendix VIII MDR.
• Based on the classification a conformity check has to be done either by the manufacturer himself or with the involvement of a „notified body“.
• Only “compliant” and CE-marked medical devices may be placed on the market and used.

Question 72

What are the four factors Lessig mention her book?

Answer 72

▪ law
▪ social norms
▪ market
▪ architecture

and that regulation “by design” likely to increase

Question 73

What is a contract?

Answer 73

▪ Promise (or set of promises) among two or more parties
▪ of acting (or refraining from acting) in a specified way
▪ for the breach of which the law gives a remedy

Question 74

What is the definition of smart contract?

Answer 74

A computerised transaction algorithm that performs the terms of the contract

Question 75

Can smart contracts give rise to legally binding contracts?

Answer 75

Yes, by having elements of a legally binding contract

Question 76

What factors can limit the formation of smart contracts?

Answer 76

• requirement of mutual consent
• rules of interpretation
• requirement of lawful content

Question 77

How a contract is concluded?

Answer 77

▪ Offer:
− Manifestation of willingness to enter into a specific agreement
− addressed to another (= the offeree), in words or by conduct
− in recognition that a binding commitment is being made
− so made as to justify another person in understanding that his assent will conclude a binding agreement

▪ Acceptance:
− Corresponding manifestation of assent, in words or by conduct

Question 78

Things to consider about formation of contract?

Answer 78

(1) A proposal for concluding a contract addressed to one or more specific persons constitutes an
offer if it is sufficiently definite and indicates the intention of the offeror to be bound in case of
acceptance. A proposal is sufficiently definite if it indicates the goods and expressly or
implicitly fixes or makes provision for determining the quantity and the price.
(2) A proposal other than one addressed to one or more specific persons is to be considered
merely as an invitation to make offers […].

(1) A statement made by or other conduct of the offeree indicating assent to an offer is an
acceptance. Silence or inactivity does not in itself amount to acceptance.
(2) An acceptance of an offer becomes effective at the moment the indication of assent reaches
the offeror. […]
Article 19
(1) A reply to an offer which purports to be an acceptance but contains additions, limitations or
other modifications is a rejection of the offer and constitutes a counter-offer.

Question 79

Pitfalls of auto-contracting?

Answer 79

Contract terms need to be agreed upon:
▪ Can one or both parts delegate assent to a machine?
▪ Duty to ‘translate’ code into comprehensible language?

Contract terms need to be interpreted:

▪ in accordance with the meaning both parties have attached to a term
▪ in lack thereof, in accordance with the meaning a reasonable party
would have attached to it at the time of contracting

Contract terms must be lawful

Assent to whatever action “electronic agent” might take:
▪ Sophisticated algorithms may be self-teaching and self-reliant
▪ May move far beyond initial intent of their authorising individual/entity

Who should bear the consequences of unwanted action:

Question 80

Information that should be given to consumer mentioned in the consumer rights directive?

Answer 80

− (a) main characteristics of the goods/services
− (b) identity of the trader
− (c) geographical address + contact
− (e) total price of the goods/services
− (g) arrangements for payment, delivery, performance
− (h) existence of a right of withdrawal and proceedings for exercising that
right
− (l) reminder of the existence of a legal guarantee of conformity for goods
− […] + many, many more information requirements

Question 81

The important point in concluding a distance contract?

Answer 81

If a distance contract to be concluded by electronic means places the consumer under an obligation to pay, the trader shall make the consumer aware in a clear and
prominent manner, and directly before the consumer places his order

If the trader has not complied with this subparagraph, the consumer shall not be bound by the contract or order.

“pay now”: consumer must explicitly acknowledge obligation to pay

Question 82

What criteria must be obeyed in writing terms of service?

Answer 82

The terms of service are subjected to court control:
* Transparency
* Fairness
* And use of certain terms are generally prohibited (Black list)

Question 83

What are the characteristics of unfair terms?

Answer 83

• Limiting the legal rights of the consumer including the option of offsetting a debt owed to the seller
• Obliging the consumer to fulfil all his obligations where the seller or supplier does not perform his
• Excluding or hindering the customer’s right to take legal action
• The contract should not make the consumer responsible for proving something that should be the responsibility of another party in the contract

Where there is doubt about the meaning of a term, the interpretation most favourable to the consumer shall prevail

Question 84

When the auto-formation by design will be successful?

Answer 84

▪ both parties consent to be bound by the terms being negotiated,
▪ content of the agreement can be sufficiently determined, and
▪ the agreement is lawful in content

Nota bene: Results will not necessarily be the same in all jurisdictions!

Question 84

When the auto-formation by design will be successful?

Answer 84

▪ both parties consent to be bound by the terms being negotiated,
▪ content of the agreement can be sufficiently determined, and
▪ the agreement is lawful in content

Nota bene: Results will not necessarily be the same in all jurisdictions!

Question 85

Right of the secured creditor to obtain possession of an encumbered asset if…?

Answer 85

• The grantor has consented in writing
• The secured creditor has given the grantor and any person in possession of the encumbered asset notice of default and of the secured creditor’s intent to obtain possession
• At the time the secured creditor attempts to obtain possession of the encumbered asset, the person in possession of the encumbered asset does not object

Question 86

When Electronic self-help is permitted?

Answer 86

Electronic self-help is permitted only if the debtor separately agrees to a term of the security agreement authorizing electronic self-help that requires notice of exercise

Before resorting to electronic self-help authorized by a term of the security
agreement, the secured party shall give notice to the debtor

Question 87

What are the consumer protection elements in the role of a borrower?

Answer 87

• Non-consensual intrusion into the consumer’s private home?
• Threat of deactivation as a tactic by creditors against consumers in default
• Risk of disadvantageous or oppressive agreements

Question 88

When Private self-enforcement is permissible?

Answer 88

Private self-enforcement is permissible where the right being enforced actually exists and
* ▪ the aggrieved party freely consents at the time when the interference takes place; or
* ▪ the aggrieved party consented prior to the interference taking place and the relevant law allows self-help under the specific circumstances and
* ▪ no foreseeable immediate damage results from the interference

Question 89

The AI Regulation lays down:

Answer 89

• ◦ harmonised rules for the placing on the market, the putting into service and the use of artificial intelligence systems (‘AI systems’) in the Union;
• ◦ prohibitions of certain artificial intelligence practices;
• ◦ specific requirements for high-risk AI systems and obligations for operators of such systems;
• ◦ harmonised transparency rules for certain AI systems;
• ◦ rules on market monitoring, market surveillance and governance;
• ◦ measures in support of innovation.

Question 90

Exceptions about AI regulation scope?

Answer 90

Exceptions for High-Risk AI systems that are already covered by harmonized EU law:
* Not applicable for AI systems that are used for purposes outside the scope of EU law as well as military purposes or purposes relating to defence and national security.
* Further exceptions, e.g. public authorities in third countries or intl organizations that use AI in the framework of international agreements for law enforcement and judicial cooperation with the Union or a member state.

Question 91

What are the PROHIBITED ARTIFICIAL INTELLIGENCE TECHNIQUES? in ARTICLE 5

Answer 91

• SUBLIMINAL INFLUENCE
• EXPLOITATION OF VULNERABILITIES
• SOCIAL SCORING
• BIOMETRIC IDENTIFICATION

Question 92

What is the definition of importer?

Answer 92

Any natural or legal person physically present or established in the Union that places on the market an AI system that bears the name or trademark of a natural or legal person established outside the Union;

Question 93

What is the definition of distributer?

Answer 93

Any natural or legal person in the supply chain, other than the provider or the importer, that makes an AI system available on the Union market;

Question 94

What is the exception of informing persons about chating with an AI chatbot?

Answer 94

This obligation shall not apply to AI systems authorised by law to detect, prevent, investigate and prosecute criminal offences, subject to appropriate safeguards for the rights and freedoms of third parties, unless those systems are available for the public to report a criminal offence.

Question 95

What are the high-risk AI compliance requirements?

Answer 95

• Accuracy, Robustness and Cybersecurity
• Risk management system
• Data and data goverance
• Technical documentation
• Record keeping
• Tansparency and information
• Human oversight

Question 96

What measures should a risk management system take?

Answer 96

• Continuous iterative process planned and run throughout the entire lifecycle of a high-risk AI system, requiring regular systematic updating. It shall comprise the following steps:

◦ identification and analysis of the known and foreseeable risks most likely to occur to health, safety and fundamental rights
◦ evaluation of other possibly arising risks
◦ adoption of suitable risk management measures

• Only those risks are addressed that may be reasonably mitigated or eliminated through the development or design of the high-risk AI system (especially by providing adequate technical information

Question 97

What are the obligation of providers about high-risk AI systems?

Answer 97

• Quality Management System
• Documentation Keeping
• Conformity Assessment
• Automatically Generated Logs
• Corrective Actions
• Duty of Information
• Cooperation with Authorities
• Authorized Representatives

Question 98

Who is a QUASI-PROVIDER?

Answer 98

Any natural or legal person shall be considered a provider of a new high-risk AI system for the purposes of this Regulation and shall be subject to the obligations of the provider under Article 16, in any of the following circumstances:

• They put their name or trademark on a high-risk AI system already placed on the market or put into service
• They make a substantial modification to a high-risk AI system already placed on the market or put into service
• They modify the intended purpose of an AI system which is not high risk and is already placed on the market or put ito service, in a way which makes the modified system a high-risk AI system
• They place on the market or put into service a general purpose AI system as a highrisk AI system or as a component of a high-risk AI system

Question 99

Normally claimant must prove his claim about AI product defectiveness except..?

Answer 99

• (a) the defendant has failed to comply with an obligation to disclose relevant evidence at its disposal pursuant to Article 8(1);
• (b) the claimant establishes that the product does not comply with mandatory safety requirements laid down in Union law or national law that are intended to protect against the risk of the damage that has occurred; or
• (c) the claimant establishes that the damage was caused by an obvious malfunction of the product during normal use or under ordinary circumstances.

Question 100

When distributer is held liable?

Answer 100

Distributor of the Product Member States shall ensure that where a manufacturer under paragraph 1 cannot be identified or, where the manufacturer is established outside the Union, an economic operator under paragraph 2 or 3 cannot be identified, each distributor of the product can be held liable where:

• (a) the claimant requests that distributor to identify the economic operator or the person who supplied the distributor with the product; and
• (b) the distributor fails to identify the economic operator or the person who supplied the distributor with the product within 1 month of receiving the request.

This shall also apply to any provider of an online platform that allows
consumers to conclude distance contracts with traders and that is not a manufacturer, importer or distributor

Question 101

What happens if claimant faces excessive difficulties to prove the defectiveness of the product or the causal link?

Answer 101

Where a national court judges that the claimant faces excessive difficulties, due to technical or scientific complexity, to prove the defectiveness of the product or the causal link between its defectiveness and the damage, or both, the defectiveness of the product or causal link between its defectiveness and the damage, or both, shall be presumed where the claimant has demonstrated, on the basis of sufficiently relevant evidence, that:

• (a) the product contributed to the damage; and
• (b) it is likely that the product was defective or that its defectiveness is a likely cause of the damage, or both

Question 102

What is the new definition of AI system?

Answer 102

‘artificial intelligence system’ (AI system) means a system that is designed to operate with elements of autonomy and that, based on machine and/or human-provided data and inputs, infers how to achieve a given set of objectives using machine learning and/or logic- and knowledge based approaches, and produces system-generated outputs such as content (generative AI systems), predictions, recommendations or decisions, influencing the environments with which the AI system interacts;

Question 103

Anex III high risk AI examples :

Answer 103

• ◦ Biometrics: Remote biometric identification systems
• ◦ Critical infrastructure: AI systems intended to be used as safety components in the management and operation of critical digital infrastructure, road traffic and the supply of water, gas, heating and electricity.
• ◦ Employment, workers management and access to self-employment: AI systems intended to be used for recruitment or selection of natural persons, notably to place targeted job advertisements, to analyse and filter job applications, and to evaluate candidates;

Question 104

What are the conditions for rebuttable presumption of a causal link for provider?

Answer 104

• − AI system was not developed on the basis of training, validation and testing data sets that meet the quality criteria referred to in the AI Regulation, Art 10 (2)-(4)
• − AI system was not designed and developed in a way that meets the transparency requirements m was laid down in the AI Regulation, Art 14
• − AI system was not designed and developed so as to achieve, in the light of its intended purpose, an appropriate level of accuracy, robustness and cybersecurity pursuant to AI Regulation, Artt 15 f
• − AI system was not immediately brought in conformity or withdrawn/recalled, pursuant to AI Regulation, Art 16 (g) and Art 21

Question 105

What are the conditions for rebuttable presumption of a causal link for user?

Answer 105

• − […] did not comply with its obligations to use or monitor the AI system in accordance with the accompanying instructions of use or, where appropriate, suspend or interrupt its use pursuant to the AI regulation, Art 29
• − exposed the AI system to input data under its control which is not relevant in view of the system’s intended purpose pursuant to AI regulation, Art 29 (3)

Question 106

What are the exceptions for rebuttable presumption of a causal link?

Answer 106

• − In the case of a claim for damages concerning a high-risk AI system, a national court shall not apply the presumption laid down in paragraph 1 where the defendant demonstrates that sufficient evidence and expertise is reasonably accessible for the claimant to prove the causal link […]
• − In the case of a claim for damages concerning an AI system that is not a high-risk AI system, the presumption laid down in paragraph 1 shall only apply where the national court considers it excessively difficult for the claimant to prove the causal link […]
• − In the case of a claim for damages against a defendant who used the AI system in the course of a personal, non-professional activity, the presumption laid down in paragraph 1 shall apply only where the defendant materially interfered with the conditions of the operation of the AI system or if the defendant was required and able to determine the conditions of operation of the AI system and failed to do so.