Brand experience Dream Center Peoria Presentation.pdf
LEGAL ENVIRONMENT OF ELECTRONIC COMMERCE
1.
2. ●
How the legal environment affects electronic commerce activities.
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What elements combine to form an online business contract.
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How to copyright , patent, trademark laws govern the use of intellectual property
online.
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That the internet has opened doors for online crime, terrorism, and warfare
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How ethics issues arise for companies conducting electronic commerce
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Ways to resolve conflict between companies desire to collect and use their customers
data and the privacy rights of those customers
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What taxes are levied on electronic commerce activities.
3. INTRODUCTION
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Case Study About Dell Computer and Micron
Electronics.
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WHAT: Two companies that sold personal computer through web sites and
agreed to settle U.S Federal Trade Commission charges.
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Problem: Charges are misleading customers by their advertisements.
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Violation: Consumer Leasing Act of 1976-was designed to required banks
and other leading establishments to fully disclose the terms of leases so that
the customers would have enough information to make informed in financing
choices when leasing cars, furniture and other goods.
●
4. THE LEGAL ENVIRONMENT OF ELECTRONICTHE LEGAL ENVIRONMENT OF ELECTRONIC
COMMERCECOMMERCE
Businesses that operate on the Web must comply with the sameBusinesses that operate on the Web must comply with the same
laws and regulations that govern the operations of all thelaws and regulations that govern the operations of all the
businesses.businesses.
If they do not, they face the same penalties including fines,If they do not, they face the same penalties including fines,
reparation payments, court-impose dissolution, and even jailreparation payments, court-impose dissolution, and even jail
time for officers and owners-that any business face.time for officers and owners-that any business face.
5. TWO FACTORS, THE WEB FACE
FIRST
The Web extends a company’s reach beyond
traditional boundaries.
SECOND
The Web increase the speed and efficiency of the
business communication.
6. BORDERS AND JURISDICTION
Territorial borders in the physical world serve a
useful purpose in traditional commerce:
They mark the ranger of culture and reach applicable
laws very clearly. When people travel across
international borders, they are made aware of the
transition in many ways.
8. POWER
Power is a form of control over physical space
and the people and the objects that reside in the
space, and is a defining characteristic of
statehood.
9. EFFECTS
Laws in the physical world are grounded in
the relationship between physical proximity
and the effects, or impact, of a person’s
behavior.
10. LEGITIMACY
Most people agree that the legitimate right to
create and enforce laws derives from the mandate
of those who are subject to those laws.
11. NOTICE
Physical boundaries are a convenient and
effective way to announce the ending of one legal
or cultural systems and the beginning of another.
Notice is the expression of such change In the
rules.
12. Physical
geographic
boundaries
Legal
boundaries
Control over space, people, and objects
POWER
EFFECTS
LEGITIMACY
NOTICE
Stronger on people and things that are closerStronger on people and things that are closer
Mandate of those people subject to the laws
People must know the law and obey it
13. JURIDICTION ON THE INTERNET
The task on defining, establishing, and asserting jurisdiction are
much more difficult on the internet than they are in the physical
world, mainly because traditional geographic boundaries do not
exist.
Contract is a promise or a set of promises between two or
more legal entities-people or corporations-that provides for an
exchange of value between them.
Breach of contract- either party to a contract does not comply
with the terms of the contract, the other party can sue for failure
to comply.
Tort is an international or negligent action taken by a legal
entity that causes harm to another legal entity.
15. PERSONAL JURISDICTION
Personal jurisdiction is, in general, determined by the
residence of the parties. However, an out-of-state
person or corporation can also voluntarily submit to the
jurisdiction of a particular state court by agreeing to do
so in writing or by taking action in the state.
Forum selection clause is one of the most common
ways that people voluntarily submit to a jurisdiction is
by signing a contract that includes a statement that the
contract will be enforced according to the laws of a
particular state.
16. A TYPICAL FORUM
SELECTION CLAUSEThese terms of use shall be govern by and construed
in accordance with the laws of the State of
Washington, without regard to its conflict of laws
rules. Any legal actions arising out of this Agreement
shall be litigated and enforce under the laws of the
State of Washington. In addition, agree to submit to the
jurisdiction of the courts of the State of Washington,
and that any legal action pursued by you shall be
within the exclusive jurisdiction of the court of King in
the State of Washington
17. JURISDICTION IN
INTERNATIONAL COMMERCE
Jurisdiction issues that arise in international business are
even more complex than the rule governing personal
jurisdiction across state lines within the United States.
The exercise of jurisdiction across international border is
govern by treaties between the countries engaged in
dispute.
Judicial comity is a principle that courts asked to enforce
the laws of the other nations sometimes follow which
means that they voluntarily enforce other countries’ laws
or judgments out of a sense of comity, or friendly civility
18. CONFLICT OF LAWS.
In the United States, business is govern by federal
laws, state laws, and local laws. These laws addresses
the same issues in different ways. Lawyers call this
situation a conflict of laws.
19. THREE ELEMENT OF
CONTRACT• An Offer is a commitment with certain terms made to
another party, such as a declaration of willingness to buy
or sell a product or service.
• An Acceptance is the expression of willingness to take an
offer, including all its stated terms.
• Consideration is the agreed-upon exchange of something
valuable, such as money, property or future service.
• An implied contract can also be formed by two or more
parties that act as if a contract exists, even if there is no
contract has been written and signed.
•
20. ●STEP ●CONTRACT
ELEMENT
●PARTICIPAN
T
●ACTION
●1. ●Invites offers ●Seller ●Promotes product
through Web page
and states condition
under which offers will
be accepted (for
example, price and
shipping terms)
●2. ●Offer ●Buyer ●Click button to make
offer to purchase
product
●3. ●Acceptance ●Seller ●Acceptance buyer’s
offer, processes
payment, and ships
product
21. CLICK-WRAP AND WEB-WRAP
CONTRACT ACCEPTANCE
END-USER LICENSE AGREEMENT
- often appear in a dialog box as a part of the software
installation process. When the user click the “AGREE”
button, the contract is deemed to be signed.
SHRINK WRAP ACCEPTANCE
- where the package are wrap by plastics including the
statement indicating that the buyer accepted the condition of
EULA’s by removing the plastic wrap on the package.
22. CREATING WRITTEN CONTRACT ON
THE WEB
In general, contracts are valid even if they are not written
or signed. However, certain categories of contract are
enforce unless the terms are put into writing and signed by
both parties.
Following this British precedent, every state in the United
States today has similar law, called Statute of Frauds.
Writing exist when the terms of the contract has been
reduced to some tangible form.
Signature is any symbol executed or adopted for the
purpose of authenticating a writing.
23. IMPLIED WARRANTIES AND WARRANTY
DISCLAIMERS ON WEB.
Implied Warranty is a promise to which the seller
can be held even if the seller did not make an explicit
statement on that promise.
Warranty Disclaimer is the statement declaring that
the seller will not honor some or all warranties implied.
24. A WEB SITE WARRANTY
DISCLAIMER
Disclaimers
WE DO NOT PROMISE THAT THIS WEB SITE OR ANY CONTENT, ELEMENT OR FEATURE OF THIS
SITE WILL BE ERROR-FREE OR INTERRUPTED, OR THAT ANY DEFECTS WILL BE CORRECTED,
OR THAT YOUR USE OF THE SITE WILL PROVIDED SPECIFIC RESULTS. THE SITE AND ITS
CONTENT ARE DELIVERED ON AN “AS-IS “ BASIS. INFORMATION PROVIDED ON THE SITE IS
SUBJECT TO CHANGE WITHOUT NOTICE. WE ANNOT ENSURE THAT ANY PROGRAMS, FILES
OR OTHER DATA YOU DOWNLOAD FROM THE SITE WILL BE OF VIRUSES OR DESTRUCTIVE
FEATURES.
WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF
ACCURANCY, NON-INFRIGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE. WE DISCLAIM ANY AND ALL LIABILITY FOR THE ACTS, OMISSION AND CONDUCT
OF ANU THIRD PARTIES IN CONNECTION WITH OR RELATED TO YOUR USE OF THE SITE
AND/OR ANY OF OUR SERVICES. YOU ASSUME TOTAL RESPONSIBILITY FOR YOUR USE OF
THE SITE AND ANY LINKED SITES. YOUR SOLE REMEDY AGAINTS US FOR DISSATISFACTION
WITH THIS SITE OR ANY CONTENT CONTAINED ON THE SITE IS TO STOP USING THE SITE OR
THE CONENT. THE LIMITATION OF RELIEF IS A PART OF BARGAIN BETWEEN THE PARTIES.
The above disclaimers apply to any damages, liability or injuries caused by any failure of performance, error,
omission, interruption , defect of any kind, delay of operation or function, computer virus, communication
failure, theft or destruction of or unauthorized access to, alteration of, or use, whether for breach of contract,
tort, negligence or any other cause of action.
25. AUTHORITY TO FORM A CONTRACT
AUTHORITY TO BIND
- an individual has the authority to commit a
company to an online contract is a greater problem than
a forged identities in electronic commerce.
TERMS OF AGREEMENT
- many web sites have stated rules that site visitors
must follow, although most visitors are not aware of
these rules. If you examine the home page of a web site,
you will often a link to page titled “ terms of service ” ,
“ conditions of use”, “ user agreement” , or something
similar.
26. TERMS OF SERVICE
- are agreement even when they appear under a
different title. In most cases, a site visitor is held to the
terms of service even if that the visitor has not read the
content or click the button to indicate agreement with
the terms. The visitor is bound to the agreement by
simply using the site, which is an example of the Web-
wrap acceptance you learned about earlier in this
chapter.
27. EXAMPLE OF TERMS OF SERVICE
Your access to this site is provided by the example
association . This term of service agreement describes
your rights and responsibilities and states the terms and
conditions under which you may use this web site.
Please read this documents carefully. By using this
web site, you are indicating your acceptance to be
bound by the terms and condition by this agreement. If
you do not accept the terms and conditions stated here,
the association is not willing to allow you to use the
web site and you should immediately stop using it. It is
your responsibility to review the Agreement
periodically so you are aware of this content.
28. USE AND PROTECTION OF INTELLECTUAL
PROPERTY IN ONLINE BUSINESS
Intellectual property is a general terms that includes
all products of a human mind. These products can be
tangible or intangible. Intellectual property rights
includes the protections afforded to individuals and
companies by governments through governments’
granting of copyrights and patents, and through
registration of trademarks and service marks.
Right of publicity, which limited right to aspect
identity.
29. COPYRIGHT ISSUES
Copyright is a right granted by a government to the author
or creator of a literary or artistic work. The right is for the
specific length of time provided by the copyright law and
gives the author or creator the sole and exclusive right to
print, publish or sell the work.
Creations that can be copyrighted include virtually all forms
of artistic or intellectual expression-books, music, artworks,
recordings (audio and video), architectural drawings,
choreographic works, product packaging, and computer
software.
VICARIOUS COPYRIGHT INFRINGEMENT- if it is
capable of supervising the infringement activity and obtains
financial benefits from the infringing activity.
30. PATENTS ISSUESPATENTS ISSUES
A PATENT- is an exclusive right granted by the
government to an individual to make, use and sell an
invention.
THE BUSINESS PROCESS PATENT- which
protects a specific set of procedures for conducting a
particular business activity.
31. TRADE MARK- is a distinctive mark, device, motto or implement
of the company affixes to the goods it produces for identification
purposes.
SERVICE MARK- is a similar to a trade mark, but it is use to
identify service provided.
TRADE NAME- is the Name that the business use to identify
itself.
COMMON LAW- is the part of the business law established by the
history of court decisions that has accumulated over many years.
STATUTORY LAWS- arises when elected legislative bodies pass
laws, which are also called statues.
TRADE MARK ISSUESTRADE MARK ISSUES
32. CYBERSQUATTING-is a practice of registering a
domain names that is the trade mark of another person or
a company that hoping that the owner of the trade mark
pay a huge amount of money to acquire the url.
TYPOSQUATTING- called name changing occurs when
someone registers purposely misspelled variation of well-
known domain names.
WORLD INTELLECTUAL PROPERTY
ORGANIZATON- settled issues arises when someone
has registers the domain name that is the existing
trademark or an existing company or a person.
DOMAIN NAMES AND INTELLECTUALDOMAIN NAMES AND INTELLECTUAL
PROPERTY ISSUESPROPERTY ISSUES
33. NAME STEALING- occurs when
someone other than the owner of the
domain names uses the name.
34. Protecting intellectual property online
1. Digital watermark- digital code or stream embedded undetectably in a
digital image or audio file.
2. Verance- is a company that provides among other products, digital
audio, water making system to protect audio files on the internet.
3. Blue spike- produces watermarking system that authenticates copyright
and provides copy control.
4. Copy control- electronic mechanism for limiting the number of copies
that one can make digital work.
5. Digimarc- another company that provides watermark intellectual
property protection software.
35. Defamatory statement- is a statement that is false and
that injures the reputation of another person.
Trademark dilution- is the reduction of the distinctive
quality of a trademark by the alternative uses.
36. TYPES OF CYBERCRIME ONLINE
1. CYBERBULLYING- can include threat, sexual
remarks, or pejorative comments transmitted on
the internet or posted on the web.
2. SEXTING- is a crime in many jurisdictions. The
practice of sending sexually explicit messages or
photo using a mobile phone.
37. ELECTRONIC COMMUNICATIONS
PRIVACY ACT OF 1986
Is the main law governing privacy in the internet today.
CHILDRENS ONLINE PRIVACY PROTECTION
ACT OF 1996- which provides restriction on data
collection that must be followed by electronic
commerce.
