Future Business Leaders of America (FBLA) Business Law Practice Exam

Which term is used to describe an encoded message at the end of an online contract?

1. Digital signature

2. Electronic seal

3. Cryptographic key

4. Authentication code

The correct answer is: Digital signature

A digital signature is a term that refers to an encoded message added to a document or an online contract to verify its authenticity and integrity. It functions like a handwritten signature or a stamped seal, serving to confirm the identity of the sender and ensuring that the document has not been altered in transit. Digital signatures are created using cryptographic techniques that bind the signature to the specific content of the document. This term is often used in the context of electronic contracts because it provides a way to maintain security and trust in digital transactions. When someone signs a contract digitally, the signature is generated through a specific algorithm that ensures both the signer’s identity and the validity of the agreement. In contrast, an electronic seal is more about certifying the origin and integrity of the document but may not contain personal identification of the signer. A cryptographic key is a tool used in the creation of digital signatures but is not itself the signed message at the end of a contract. An authentication code generally refers to a code that verifies user access but does not directly pertain to the signing of a document. Understanding the specific functions and applications of these terms can help clarify why a digital signature distinctly represents an encoded message attached to online contracts.