Download Business Law: Understanding the Legality of E-Contracts and Electronic Signatures and more Slides Commercial Law in PDF only on Docsity! Business Law Chapter 17 E-Contracts Docsity.com Objectives • Discuss whether shrink-wrap agreements are enforceable • Explain when click-on agreements are enforceable • Define the legal validity of an electronic signature Docsity.com Online Contract Formation • Create offers that clearly spell out the terms that will govern transactions if accepted. • Make terms conspicuous and easily viewed by potential buyers. Docsity.com Shrink-Wrap Agreements • An agreement whose terms are expressed inside a box in which the goods are packaged • Agreement by keeping contents of box • Between manufacturer and user Docsity.com Shrink-Wrap Agreements • Warranties, remedies, and other issues associated with use of product • Enforceable contract terms • Enforced terms of shrink-wrap agreements in many cases • Not all terms presented have been enforced • When terms are communicated Docsity.com E-Signatures • Asymmetric cryptosystem – private key (code) with a public counterpart • Cybernotary – issues keys, identifies the owner and certifies validity of public key • No uniform state law • Uniform Electronic Transactions Act (1999) Docsity.com E-Signatures • Electronic Signatures in Global and National Commerce Act (2000) • E-SIGN Act • No contract, record, or signature will be “denied legal effect” solely because it is in an electronic form • Parties must agree to use e-signatures Docsity.com UETA • Uniform Electronic Transactions Act • Under UETA, contracts entered into online are presumed valid • Applies only to electronic records and e- signatures relating to a transaction Docsity.com UCITA • Contracts to license or purchase software • Contracts to create computer programs • Contracts for computer games • Contracts for online access to databases • Contracts to distribute information on the Internet • Etc Docsity.com UCITA • May apply to part of transaction • Primary subject matter – applies to entire transaction • Recognizes freedom to contract – “opt out” • Default rules – apply only in the absence of terms Docsity.com Highlights of UCITA • Licensing – licensee is given certain rights to use and control the computer information during the license period • Title does not pass • UCITA identifies rights and restrictions Docsity.com
