LML4810 ASSIGNMENT 01: GENERAL FEEDBACK SEMESTER 02 2020
DUE DATE: 31 AUGUST 2020
QUESTION 1
The Covid-19 pandemic is affecting how we live and conduct our daily affairs. Nearly all
countries in the world are under some form of lockdown or tight measures have been put in
place to curb the scou...
LML4810 ASSIGNMENT 01: GENERAL FEEDBACK SEMESTER 02 2020
DUE DATE: 31 AUGUST 2020
QUESTION 1
The Covid-19 pandemic is affecting how we live and conduct our daily affairs. Nearly all
countries in the world are under some form of lockdown or tight measures have been put in
place to curb the scourge of the virus. Your friend Koketso has been running a successful
informal business with a clientele across the country. Koketso sells leather goods namely
shoes and handbags. The lockdown means Koketso won’t be able to access her clients.
Koketso comes to you seeking advice on how to start an online business in order to get the
same effect.
Answer the following questions:
1.1 Describe to Koketso what online business refers to. In your answer, explain other
subsets of that kind of business. (5)
Electronic commerce1 is defined broadly as “the use of electronic networks to exchange
information, products, services and payments for commercial and communication purposes”.2
The Green paper notes the following types of e-commerce: Business to Consumers (otherwise
known as B2C);3 businesses to business (B2B);4 E-government5 which includes the following
types: Government and consumers (G2C);6 and Government to business (G2B);7 and
government to government (G2G)”.8 Lastly: Consumer to consumer (C2C).9
NB: students who referred to the study guide and internet sources or only had one footnote
received less marks.
1.2 Identify and briefly discuss two legal challenges that Koketso might come across
when she sets up her business. NB: limit challenges to the
module. (10)
The following are the challenges posed by e-commerce as noted in the Green paper:
Taxation;10 Intellectual-property protection;11 Consumer protection;12 Domain naming;13
1 Hereafter referred to as ‘e-commerce’.
2 Department of Communications (Republic of South Africa) Green Paper on Electronic
Commerce: Making it your own business (2000) 16. Hereafter ‘Green paper’.
3 Ibid. This involves online shopping or buying and selling of goods online by consumers.
4 Ibid. This involves integrating value chains-supplier and customer base.
5 See Stair and Reynolds Fundamentals of Information Systems 241-242.
6 Ibid. Includes services and programs by Government, such as SARS e-filing et cetera.
7 Ibid. This involves E-procurement.
8 Ibid; also Stair note 5 242. This includes interaction among government departments at local
and provincial levels.
9 Ibid Stair. E-commerce involving electronic transactions between consumers using third party
to facilitate the process. Example include e-Bay where customers buy and sell items
to each other.
10 See in particular: pages 22-24 of the Green paper.
11 Ibid at 35-39.
12 Ibid at 47-50.
13 Ibid at 59-61.
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, Electronic-payment mechanisms.14 Eiselen15 highlights the following as perceived legal
uncertainties: validity of the agreement; offer and acceptance; automated contracts and
agency; time and place of contracting; formalities; incorporation of standard terms; jurisdiction;
and applicable law. Other challenges include privacy concerns; security issues; liability of
Internet service providers (ISP) et cetera.16
NB: Students had to choose two legal challenges and provide a brief summary of each. The
challenges had to be limited to the module content. No legislative provisions were required on
this question.
1.3 Identify legislation that regulates the types of businesses in South Africa. Also
outline three objectives in that legislation. (10)
Electronic Communications and Transactions Act 25 of 2002. The objects as noted in section
2 (1) states: The objects of this Act are to enable and facilitate electronic communications and
transactions in the public interest, and for that purpose to:
(a) recognise the-importance of the information-economy for the economic and social
prosperity of the Republic;
(b) promote universal access primarily in underserviced areas; promote the understanding
and, acceptance of and growth in the number of electronic transactions in the Republic;
(c) remove and prevent barriers to electronic communications and transactions in the
Republic;
(d) promote legal certainty and confidence in respect of electronic communications and
transactions;
(e) promote technology neutrality in the application of legislation to electronic
communications and transactions;
(f) promote e-government services and electronic communications and transactions with
public and private bodies, institutions and citizens;
(g) ensure that electronic transactions in the Republic conform to the highest international
standards:
(h) encourage investment and innovation in respect of electronic transactions in the
Republic;
(i) develop a safe, secure and effective environment for the consumer. business and the
Government to conduct and use electronic transactions;
(j) promote the development of electronic transactions services which are responsive to
the needs of users and consumers;
(k) ensure that, in relation to the provision of electronic transactions services, the special
needs of particular communities and, areas and the disabled are duly taken into
account;
(l) ensure compliance with accepted International technical standards in the promotion
of stability of electronic transactions in the Republic.
(m) promote the development of human resources in the electronic transactions
(n) promote SMMEs within the electronic transactions environment;
(o) ensure efficient use and management of the .za domain name space; and
(p) ensure that the national interest of the Republic is not compromised through provision
and development of electronic communications and transactions; environment;
(q) the use of electronic communications.
14 Ibid at 63-65.
15 Eiselen “E-Commerce” in Information and Communications Technology (2008) 144; also see
Green paper at 17-20. Note should be taken that most of these legal uncertainties have to do
with contracting online or e-contracts.
16 Ibid Green paper.
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