Management Information System (MIS) Practice Exam

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Which type of e-auction fraud involves the seller's failure to ship the item after payment?

  1. Bid luring

  2. Payment failure

  3. Nonshipment

  4. Shipping fraud

The correct answer is: Nonshipment

The type of e-auction fraud that involves the seller's failure to ship the item after payment is characterized as nonshipment. This occurs when a buyer completes a financial transaction, making a payment, but the seller does not fulfill their obligation to send the purchased item. This fraudulent behavior can lead to a significant loss for buyers who may not receive the expected goods. Understanding nonshipment is important in e-commerce as it emphasizes the need for robust buyer protection mechanisms and trust-building between buyers and sellers. While similar concepts exist, the specific term 'nonshipment' clearly defines this issue in the context of e-auctions, distinguishing it from other forms of fraud that may involve bid manipulation or issues related to payment processing.