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E-Contracts
Law Notes
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Introduction
Most courts find E-Contracts involve basic principles of contract law, applied
in the online context.
Online Contract Formation
Online Offers should include:
Remedies for Buyer.
Statute of Limitations.
What constitutes Buyers acceptance.
Method of Payment.
Sellers Refund and Return Policies.
Disclaimers of Liability.
How Seller will Use Buyers Information (Privacy).
Dispute Settlement Provisions.
Choice of Law.
Choice of Forum.
E-Bay uses online dispute resolution.
Displaying the Offer (via hyperlink).
How Offer Will Be Accepted.
Amazon.com--Checkout.
I Accept Button to Click.
Online Acceptances
Click-on Agreements.
Shrink-Wrap Agreements.
Contract terms are inside the box.
Party opening box agrees to terms by keeping merchandise.
Enforceable Contract Terms. (UCC 2-204).
Additional Terms.
Case 18.1: Klocek v. Gateway Inc. (2000).
Click-On Agreements occur when Buyer checks out or clicks on I Accept
button on Sellers website or when software is installed.
Case 18.2: i.LAN Systems Inc. v. NetScout Service Level Corp. (2002).
Browse-Wrap Terms.
Case 18.3: Specht v. Netscape Communications (2002).
E-Signatures
E-Signature Technologies.
Asymmetric Cryptosystem.
Cyber Notary.
State Law Governing E-Signatures.
Uniform Electronic Transactions Act (1999).
Federal Law.
E-SIGN (2000) gives e-signatures and e-documents legal force.
Partnering Agreements
Sellers and Buyers agree as to protocols to create online agreements.
Useful for electronic inventory (Just in Time) ordering of parts and supplies.
UETA
Purpose is to remove barriers to forming electronic commerce.
E-Signature is electronic sound, symbol or processassociated with a
record and adopted by a person with intent to sign the record.
UETA applies only to e-records and e-signatures relating to a transaction.
UETA and E-SIGN
E-SIGN explicitly refers to UETA.
Provides that E-SIGN is pre-empted by state passing of UETA.
But state law must conform to minimum E-SIGN procedures.
Highlights of UETA
Parties must agree to Conduct Transactions Electronically.
A party can opt out of UETA terms.
Attributionprocess to ensure person sending an electronic record is in
fact the real person.
Electronic Errors.
E-Mailbox Rules.
Dispatched when leaves control of sender.
Received when enters recipients processing system.
UCITA
Applies to computer information.
Software is not a good but intellectual property.
Software is licensed, not sold;
License contract gives Buyer (Licensee) only specific rights.
Attribution and Authentication