When companies come together to work in an integrated manner such as extranets, special care
must be taken to ensure that each party promises to provide the necessary level of protection,
liability and responsibility. These aspects should be defined in the contracts that each party signs.
What describes this type of liability?

A.
Cascade liabilities

B.
Downstream liabilities

C.
Down-flow liabilities

D.
Down-set liabilities

Explanation:
“When companies come together to work in an integrated manner, such as
extranets and VANs, special care must be taken to ensure that teach party promises to provide
the necessary level of protection, liability, and responsibility needed, which should be clearly
defined in the contracts that each party signs. Auditing and testing should be performed to ensure
that each party is indeed holding up its side of the bargain and that its technology integrates
properly with all other parties. Interoperability can become a large, frustrating, and expensive issue
in these types of arrangements.
If one of the companies does no provide the necessary level of protection and their negligence
affects a partner they are working with, the affected company can sue the upstream company. For
example, let’s say company A and company B have constructed an extranet. Company A does not
put in controls to detect and del with viruses. Company A gets infected with a destructive virus and
it is spread to company B through the extranet. The virus corrupts critical data and causes
massive disruption to company B’s production. Company B can sue company A for being
negligent. Both companies need to make sure that they are doing their part to ensure that their
activities, or lack of them, will not negatively affect another company, which is referred to as
downstream liability.” Pg 616 Shon Harris: All-in-One CISSP Certification