LmL4810
Summary
notes
Electronic Commerce
Revision Pack
,Unit 1: GLOBALISATION OF BUSINESS
Electronic frontier
The Internet is a global network of computers that all speak the same language, a
``digital Esperanto'' of zero's and ones (Gringras 1). This giant network has given birth
to an electronic frontier, namely a virtual world in which cyber citizens enter into cyber
contracts.
One of the phenomena of globalisation and the development of information technology
is the advent of global business.
Globalisation
At the very least, globalisation is a process that affects all aspects of social, political,
and economic activity. The world is thus shrinking, and we are irresistibly moving toward
a world of increased communication, common markets, and shared culture.
The digitisation of information and the rapid growth of the Internet have had a marked
influence on society. The Internet is changing the way we communicate and do
business. These changes have dramatically and irrevocably altered the needs of
business and industry.
2 What is electronic commerce?
Electronic commerce, or e-commerce, is simply trading electronically.
The technologies that can be used for electronic commerce include
- the Internet and the World Wide Web,
- electronic mail (e-mail),
- EFTPOS, and
- the common fax machine.
Commerce over the Internet differs from traditional commerce, in that, traditionally
trading was developed in a paper based society.
E-commerce takes place in an anonymous borderless society, and many of the rules
which were developed for trading in a real environment is inappropriate for this new
virtual environment. Intellectual-property law faces the biggest challenge yet as on- line
services, the Information Highway and the age of multi- media have become realities.
,Security
The Internet, comprised of millions of interconnected computers, allows nearly
instantaneous communication and transfer of information, around the world.
People use e-mail to correspond with one another.
The World Wide Web is used for online business, data transmission, research, learning,
personal communica- tions, transfer of payments and a myriad of other activities. The
perpetual increase of information transmitted electronically has lead to an increased
need for secure transmissions.
Legal Issues
On-line service providers are experiencing a number of issues of concern namely
- privacy,
- liability,
- content restrictions,
- security,
- intellectual-property protection,
- consumer protection,
- electronic authentication, and
- electronic-payment mechanisms.
Other issues are also affecting the consumer, including
- access to global telecommunications networks and
- the myriad of issues affecting access.
The creators of website shopping malls are faced with the challenge to design their sites
in order to effectively contract with customers.
3 1.3 International Trends In Legislation And Regulatory Regimes
Uniform Trade Laws
International efforts are under way to tackle the most important policy issues regarding
- telecommunications deregulation,
- the unified treatment of paperless commercial transactions,
- intellectual-property protection,
, - security and privacy and customs and taxation.
Laws providing for data protection, digital and electronic signatures, privacy and access
to information have become imperative.
UNCITRAL Model Law
The UNCITRAL Model Law on Electronic Commerce (1996) aims to create a more
secure legal environment for what has become known as ``electronic commerce'' by
providing a tool for states to enhance their legislation regarding paperless
communication and storage of information.
The Model Law is expressed in a technologically neutral manner; so that it can apply
not only to existing, but also to future, technology.
Examples
Numerous jurisdictions that have adopted legislative measures to facilitate e-commerce
based their enabling instruments on the Model Law (see, eg, in the US, the draft
Uniform Electronic Transactions Act (hereafter referred to as ``the UETA'' (1999).
This Act has been closely modelled on articles 2(a) and (f), 4, 5, 6, 7, 8, 9, 10, 11, 14
and 15 of the Model Law; see also the Australian Electronic Transactions Act 1999; and
the Canadian Uniform Electronic Commerce Act 1999 (available at <http://
www.law.ualberta.ca/alri/ulc/acts/eueca.htm>) (assented to on 13 Apr 2000); see
Ontario's Act with Respect to Electronic Information, Documents and Payments (Bill 70
2000);
Singapore has adopted the Electronic Transactions Act 25 of 1998, based on the Model
Law. International organisations have also played an important role in policy formulation
(see the Global Business Dialogue on Electronic Commerce, available at <http://
www.gbde.org>)).
