Revision Law Flashcards
What are the three common forms of electronic contracting modalities mentioned?
Terms of use (browse agreement), Contractual Terms (click agreement), and Community Policy (log-in agreement).
What is the significance of “Safe Harbour” in law?
It provides protection or immunity from certain consequences under specific conditions, acting as a legal safety net.
What are two main concerns addressed by digital advertising legislation?
Spam and the use of cookies for personalized advertising.
What is the main object of protection under the EU software protection directive?
Computer software as an expression, excluding ideas and principles.
What are consumers’ rights in digital transactions according to consumer law?
Transparency, fair treatment, and contractual protection safety.
Define “Smart Contracts.”
Digital and self-executing agreements that run on a computer program, using blockchain technology for security.
What is the role of ICPEN in consumer protection?
Facilitating international cooperation, promoting consistent consumer protection, and combating cross-border deceptive practices.
Differentiate between property rights and personal contractual rights.
Property rights are rights over goods, things, and assets, enforceable against anyone, whereas personal contractual rights are enforceable only against specific individuals or entities.
What distinguishes crypto-assets from traditional assets?
They are information or data-based assets, behaving as “rival goods” and often using blockchain technology for secure transactions.
What are the key features of VAT as a neutral tax for entrepreneurs?
The right to deduct VAT paid on purchases, ensuring the tax is effectively imposed on the final product’s value.
What principle does a progressive tax system follow?
The average tax burden increases with income.
What is the main goal of Double Tax Conventions (DTC)?
To avoid double taxation and prevent fiscal evasion with respect to taxes on income and capital.
What does the term “Permanent Establishment” (PE) mean in international taxation?
A fixed place of business through which an enterprise’s business is wholly or partly carried on.
Describe the concept of “digital assets” in the context of property.
Assets that consist of information in digital form, including intellectual property, data, and crypto-assets.
What are the implications of the digitalised economy for international taxation?
Challenges in taxing businesses that operate without physical presence, leading to a need for updated tax rules.
Define the OECD’s “Pillar One” in taxing digital businesses.
It aims to reallocate taxing rights to market jurisdictions, irrespective of physical presence, for large multinational enterprises.
What does the OECD’s “Pillar Two” propose?
A global minimum tax of 15% to ensure that multinational enterprises pay a minimum level of tax
What distinguishes a “Digital Services Tax” (DST)?
A tax on gross revenues of certain online services, primarily affecting large digital businesses.
How does VAT handle cross-border transactions?
By applying the destination principle, taxing goods and services in the country where they are consumed.
What is the role of the “Diverted Profits Tax”?
To tax profits shifted out of a country by multinationals to avoid taxation, by taxing diverted profits at a higher rate.
What legal document primarily protects software in the EU?
EU software protection directive.
What are the main types of disputes resolved by Online Dispute Resolution (ODR)?
Disputes arising from the use of digital platforms and services.
What principle underlies the need for consumer protection in digital transactions?
The identification of consumers as the weaker party in transactions and their limited technical knowledge.
How do smart contracts ensure security and trust in digital agreements?
By using blockchain technology, making the contracts transparent, secure, and unchangeable.
What is the purpose of the International Consumer Protection and Enforcement Network (ICPEN)?
To facilitate international cooperation among consumer protection authorities.
How are digital assets typically secured and transferred using blockchain technology?
Through the creation and management of personal digital wallets that use unique IDs for assets.
What defines a property right in the context of digital assets?
Rights over goods, things, and assets that are enforceable against anyone, not just specific parties.
What is the OECD’s role in addressing taxation challenges posed by the digital economy?
Leading discussions and proposing frameworks like the Unified Approach to grant more taxing rights to market jurisdictions.
What triggers the application of a Diverted Profits Tax?
Taxable events related to the avoidance of taxable presence or transactions lacking economic substance that obtain tax benefits.
Why was VAT introduced as a neutral tax for entrepreneurs?
To ensure that the tax is imposed on the final consumption value while allowing businesses to deduct VAT on inputs.
What issue does the EU face in taxing the digital economy?
Balancing the internal market principles with the competence over direct taxes, which remains with Member States.
How do Double Tax Conventions (DTC) prevent fiscal evasion?
By allocating taxing rights between countries and providing methods to eliminate double taxation.
What criteria are used to determine the existence of a Permanent Establishment (PE)?
A fixed place of business or a dependent agent who acts on behalf of an enterprise.
What is the rationale behind the development of Digital Services Taxes (DST)?
To tax revenues generated from digital services provided in a country, regardless of physical presence.
How does VAT address cross-border services in the EU?
By applying the destination principle, where services are taxed in the country where the consumer is located.
What challenge does “scale without mass” pose for traditional taxation models?
It allows companies to have significant economic presence without physical presence, complicating taxation.
Why are smart contracts seen as revolutionary in legal agreements?
They automate enforcement without intermediaries, based on predetermined conditions.
What does the “tax back” mechanism proposed by OECD’s Pillar 2 aim to address?
It aims to ensure a minimum tax rate is paid globally by multinational enterprises, countering low-tax strategies.
How do personal data and user participation challenge existing tax laws?
They create value for digital businesses not accounted for in physical presence-based tax models.
What is the impact of technology on property rights, especially in the context of digital assets?
Technology facilitates the identification, transfer, and enforcement of rights over digital assets, transforming traditional notions of property.
What is the purpose of the terms of use in electronic agreements?
To establish the conditions under which services like Google are provided and used.
How does “Safe Harbour” protect online platforms?
By providing immunity from certain legal liabilities if they comply with specific conditions, such as promptly removing copyrighted material upon notification.
What are cookies used for in digital advertising?
For personalizing advertising content based on the user’s browsing behavior.
What is excluded from protection under the EU software directive?
Ideas and principles underlying any element of software.
What main advantage do smart contracts offer over traditional contracts?
Automation of execution once predetermined conditions are met, without the need for intermediaries.
What is a primary function of the International Consumer Protection and Enforcement Network (ICPEN)?
To enhance consumer education and combat cross-border deceptive practices.
What differentiates property rights from personal rights in a contract?
Property rights are enforceable against all, whereas personal rights are only enforceable against specific parties.
How do digital wallets function in the context of crypto-assets?
They store digital currencies and assets, allowing for secure transactions and transfers between users.
What makes VAT a neutral tax for businesses?
The right to deduct VAT paid on inputs, ensuring that the tax burden falls on the final consumer.
Why are Double Tax Conventions (DTC) important in international business?
They prevent the same income from being taxed by more than one country, reducing fiscal evasion.
What does a Permanent Establishment (PE) refer to in tax law?
A fixed place of business through which an enterprise’s business activities are partly or wholly carried out.
What challenge does the “scale without mass” phenomenon pose to taxation?
It allows businesses to generate significant economic activity in a country without a physical presence, complicating the allocation of taxing rights.
What is the main component of the OECD’s “Pillar One” for taxing digital businesses?
The reallocation of taxing rights to market jurisdictions, regardless of physical presence.
What is the aim of the OECD’s “Pillar Two” proposal?
To ensure multinational enterprises pay a minimum level of tax, regardless of where they operate.
How is Diverted Profits Tax designed to impact multinational corporations?
By taxing profits shifted to low-tax jurisdictions, it aims to discourage profit shifting and base erosion.
How does VAT handle taxation for cross-border digital services in the EU?
By applying the destination principle, where services are taxed where the consumer is located.
What key principle challenges traditional tax models in the digital economy?
The significant role of intangible assets and the ability to conduct business globally without a physical presence.
How do smart contracts ensure trust and efficiency in digital agreements?
Through their self-executing nature, secured by blockchain technology, eliminating the need for intermediaries.
What does the “tax back” mechanism in OECD’s Pillar 2 seek to address?
It aims to counteract tax avoidance by ensuring multinational companies pay a minimum tax rate globally.
Why is the concept of digital assets significant in modern law and economics?
They represent a new form of property that can be traded, owned, and secured digitally, challenging traditional legal frameworks.
What legal framework governs the agreement process for using online services like fairmont hotels?
Contractual Terms (click agreement).
What role does community policy play in digital platforms like Amazon?
It sets the rules and regulations that users agree to by creating an account, governing their interactions and transactions on the platform.
How do banners function in the context of digital advertising?
As a form of online marketing, displaying promotional content on websites to attract and direct web traffic.
What distinguishes blogs and social networks in digital advertising strategies?
Their ability to engage users through content and community interaction, offering targeted advertising opportunities based on user activity and preferences.
What is the significance of influencers in online marketing?
They leverage their social media presence and follower trust to promote products or services, impacting consumer decisions.
How does the EU Directive 2019/770 relate to digital content?
It provides rules for the supply of digital content and digital services, aiming to protect consumers and ensure fair treatment.
What mechanism is mentioned for dispute resolution in digital platforms?
Online Dispute Resolution (ODR), offering a digital means to resolve disputes between parties efficiently.
How do data protection laws offer a form of safe harbour?
By granting companies immunity from legal issues if they follow specific privacy rules when transferring personal data between countries
What is the main focus of the EU software protection directive regarding software?
To protect the expression of computer software as original creative works, not the ideas or principles behind them.
How do terms of use and licenses provide contractual protection for software?
By setting the conditions under which software can be used, shared, or modified, protecting the rights of the creators.
What concept does “Safe Harbour” primarily relate to in the context of online platforms?
Legal protection mechanisms that provide immunity under specific conditions, such as copyright law and data protection.
What are the benefits of smart contracts in blockchain technology?
They offer secure, transparent, and automatic execution of agreements without the need for intermediaries.
Why is consumer education important in the digital economy?
To inform consumers about their rights and protections, and to help them navigate and make informed decisions in the digital marketplace.
How does the concept of property rights extend to digital assets like cryptocurrencies?
By recognizing these digital assets as property, individuals can own, trade, and enforce rights over them.
What challenge does the taxation of the digital economy present to traditional tax systems?
Adapting tax laws to account for businesses that operate globally without a physical presence, leveraging digital platforms and intangible assets.
How do digital services taxes aim to address the tax challenges of the digital economy?
By taxing revenues generated from digital services within a country, even if the providing company has no physical presence there.
What role does the OECD play in addressing the tax challenges of the digital economy?
It proposes frameworks and guidelines, like the Unified Approach, to adapt international tax rules to the digital age.
Why is the notion of a Permanent Establishment (PE) crucial in international taxation?
It determines the taxing rights of a country over the profits of a foreign enterprise operating within its jurisdiction.
What is the significance of crypto-assets in today’s economy?
They represent a new form of digital property, enabling secure and transparent transactions through blockchain technology.
How does VAT on cross-border transactions impact businesses in the EU?
It applies the destination principle, ensuring that VAT is paid in the country where goods or services are consumed, affecting how businesses charge and remit VAT.
What legal principle ensures consumers are informed before entering a digital contract?
Pre-contractual information duties requiring businesses to provide precise, accurate, and transparent information.
How do privacy laws protect consumer data in digital transactions?
By mandating that businesses collect, store, and use personal information in accordance with specific privacy rules and regulations.
What is a key characteristic of the digital economy’s platform model?
It enables self-generated environments for economic exchange, reducing costs while generating revenue through digital interactions.
Why are terms of use agreements critical for digital service providers like Google?
They outline the rules and conditions under which users can access and use the service, protecting both the provider and the user.
What role do influencers play in the digital economy’s advertising ecosystem?
They influence consumer purchasing decisions through social media presence, leveraging their credibility and reach.
How does the EU Directive 2019/771 enhance consumer rights in digital transactions?
It sets standards for the sale of goods, ensuring products meet consumers’ expectations and providing remedies for non-conformities.
What does “performance of the contract” entail in digital consumer law?
It refers to the obligations of businesses to deliver goods, services, and digital content as promised in the contract.
What legal mechanism do digital platforms use for dispute resolution?
Online Dispute Resolution (ODR), which allows for efficient and accessible resolution of conflicts between consumers and businesses.
How does blockchain technology redefine property rights in the digital age?
By enabling secure and transparent ownership and transfer of digital assets through decentralized ledgers.
What is the importance of copyright law’s safe harbour provisions for online platforms?
They offer legal protections for platforms against liability for user-uploaded infringing content under certain conditions.
Why is consumer protection particularly important in the context of digital markets?
Due to the asymmetry of information and technical knowledge between providers and consumers, necessitating additional safeguards.
What challenges do digital assets pose to traditional legal frameworks?
Their intangible nature and reliance on digital technologies challenge conventional notions of ownership, control, and transfer.
How do cookies play a role in personalized advertising?
They track user behavior online, allowing advertisers to target ads based on individual preferences and browsing history.
What legal challenges do smart contracts address in digital transactions?
They offer a way to automate contractual obligations, reducing reliance on intermediaries and potentially lowering transaction costs.
How does the concept of a “digital single market” influence EU consumer protection laws?
It drives harmonization of laws across member states, ensuring consumers enjoy consistent protections regardless of where they reside in the EU.
What is the significance of the “183 days rule” in determining tax residency?
It helps define tax residency based on physical presence in a country, impacting where individuals are liable to pay taxes.
How does the digital economy challenge the application of VAT?
By complicating the determination of where value is created and consumed, especially in cross-border digital services and e-commerce.
What role does data play in modern digital services and platforms?
It serves as a critical asset for personalization, advertising, and the generation of value through analysis and insights.
How do digital service taxes aim to ensure fair taxation of multinational companies?
By imposing taxes on revenues generated from digital activities in jurisdictions where the companies may not have a physical presence.
What are the implications of new digital taxes for international tax cooperation and competition?
They highlight the need for global consensus on taxation principles to avoid tax disputes and ensure a level playing field for all companies.
