B2B Regulatory Compliance & Legal Framework 2 — Questions and Answers
Question 1: Under the CAN-SPAM Act, what is the maximum penalty per violation for sending non-compliant commercial emails?
- $500
- $5,000
- $16,000 (Correct answer)
- $50,000
Correct answer: $16,000
The CAN-SPAM Act allows fines of up to $16,000 per individual email in violation, making compliance critical for B2B email campaigns.
Question 2: A B2B company based in the US collects data from EU business contacts. Which regulation primarily governs how they must handle that data?
- CCPA
- GDPR (Correct answer)
- HIPAA
- SOX
Correct answer: GDPR
GDPR applies to any organization processing personal data of EU residents, regardless of where the company is headquartered.
Question 3: In B2B contract law, what does the term 'indemnification clause' protect against?
- Delayed payment penalties
- Third-party claims and losses arising from the contract (Correct answer)
- Intellectual property theft by employees
- Data breaches caused by hackers
Correct answer: Third-party claims and losses arising from the contract
An indemnification clause requires one party to compensate the other for losses, damages, or liabilities incurred due to specified actions or breaches.
Question 4: Which US federal law regulates deceptive trade practices and false advertising in B2B marketing?
- Sherman Antitrust Act
- Federal Trade Commission Act (FTC Act) (Correct answer)
- Robinson-Patman Act
- Sarbanes-Oxley Act
Correct answer: Federal Trade Commission Act (FTC Act)
Section 5 of the FTC Act prohibits unfair or deceptive acts or practices in commerce, which includes B2B advertising and marketing.
Question 5: What is 'safe harbor' in the context of international B2B data transfers?
- A legal exemption for SMBs from GDPR
- A framework allowing lawful transfer of personal data between jurisdictions with adequate protections (Correct answer)
- A cybersecurity standard for cloud providers
- An insurance policy for data breaches
Correct answer: A framework allowing lawful transfer of personal data between jurisdictions with adequate protections
Safe harbor frameworks (such as the EU-US Data Privacy Framework) allow organizations to transfer personal data internationally by meeting agreed-upon protection standards.
Question 6: A B2B marketer sends promotional emails to a list of corporate contacts in Canada. Which law must they comply with?
- GDPR
- CAN-SPAM
- CASL (Correct answer)
- PECR
Correct answer: CASL
Canada's Anti-Spam Legislation (CASL) applies to commercial electronic messages sent to or from Canada, requiring express or implied consent.
Question 7: What does 'force majeure' in a B2B marketing services contract typically allow?
- A party to renegotiate pricing during inflation
- A party to suspend or terminate obligations due to extraordinary events beyond their control (Correct answer)
- The client to withhold payment for underperformance
- The vendor to subcontract without approval
Correct answer: A party to suspend or terminate obligations due to extraordinary events beyond their control
Force majeure clauses excuse non-performance when extraordinary events—like natural disasters or pandemics—make fulfillment impossible.
B2B Regulatory Compliance & Legal Framework 2
Under the CAN-SPAM Act, what is the maximum penalty per violation for sending non-compliant commercial emails?