Test: The Information Technology Act, 2000 - UGC NET MCQ

Statement 1 is correct because the Negotiable Instruments Act, 1881 specifically addresses the execution of negotiable instruments, excluding cheques.
Statement 2 is incorrect as trusts may also be created under other legal frameworks and not solely under the Indian Trust Act, 1882.

Therefore, the correct answer is Option A: 1 Only.

- The Assertion (A) is true; the CCA's role involves licensing and regulating Certifying Authorities while maintaining records of digital signatures.

- The Reason (R) is also true, as the Act's applicability to offenses outside India indeed broadens its enforcement reach.

- However, the Reason does not explain the Assertion, as it relates to jurisdictional enforcement rather than the regulatory role of the CCA. Thus, while both statements are true, the Reason is not the correct explanation for the Assertion.

The primary purpose of granting legal recognition to electronic data exchange and communication methods is to replace conventional communication methods. This shift allows for more efficient and secure transactions, enabling businesses and individuals to interact without the delays associated with paper documents. The transition to electronic communication also supports the broader digital transformation in various sectors, facilitating quicker responses and reducing physical resource usage.

- The Assertion is true because the Information Technology Act, 2000 explicitly recognizes electronic contracts made through secure channels as legally valid.

- The Reason is also true since digital signatures are legally recognized, providing the necessary authenticity for these contracts.

- The Reason correctly explains the Assertion because the recognition of electronic contracts is contingent on the validity of digital signatures that ensure their security and authenticity.

The Information Technology Act, 2000 aims to provide legal recognition to transactions conducted through electronic data exchange and other forms of electronic communication. This shift enables the facilitation of e-commerce activities and allows for electronic filing of documents with government bodies, thereby promoting efficiency and modernizing the legal framework. An interesting fact is that India became the 12th country to adopt such laws, reflecting a global trend toward recognizing the importance of digital transactions.

- The Assertion (A) is true because digital signatures indeed use asymmetric cryptography and hash functions to ensure both security (through encryption) and integrity (through hashing).

- The Reason (R) is also true as hash functions allow for data verification without revealing the actual data.

- The Reason is the correct explanation of the Assertion, as it highlights how a hash function supports the security and integrity provided by digital signatures.

- The Assertion is true because the Information Technology Act, 2000 indeed establishes a Cyber Regulatory Appellate Tribunal for handling appeals.

- The Reason is false because appeals against the Tribunal's rulings can only be made to the High Court, not the Supreme Court.

- Thus, while the Assertion is correct, the Reason does not accurately explain it, making the correct answer Option C.

The Information Technology Act, 2000 came into effect on October 17, 2000. This legislation marked a pivotal moment in India’s legal approach to technology, addressing issues such as electronic signatures, digital contracts, and the security of information systems. The implementation of this act was essential as it laid down the groundwork for the digital economy in India, facilitating growth in e-commerce and enhancing the legal standing of electronic documents.

The Information Technology Act, 2000 primarily focuses on the governance of cybercrimes and electronic transactions in India. It was a significant step towards recognizing and regulating the use of digital technology and the internet, providing a legal framework for electronic commerce and security of electronic data. This act helps in combating cybercrime and ensuring safe electronic transactions, which is crucial in today's digital age where online interactions are prevalent.

Statement 1 is correct as the Act indeed has extra-territorial jurisdiction and applies to individuals regardless of nationality.

However, Statement 2 is incorrect because the Act’s main limitation is the lack of international cooperation in prosecuting offenses committed by foreign nationals.

Therefore, the correct option is A.