1. Doing Business in theDoing Business in the
Information AgeInformation Age
John CorkerJohn Corker
GENL0230GENL0230

2. What is e-commerce?What is e-commerce?
Includes:Includes:
►Online business to businessOnline business to business
transactionstransactions
►Online business to consumerOnline business to consumer
transactionstransactions
►Digital delivery of products and servicesDigital delivery of products and services
►Online merchandisingOnline merchandising
►Automated telephone transactions egAutomated telephone transactions eg
phone bankingphone banking
►EFTPOS and other automated transferEFTPOS and other automated transfer

3. ContractsContracts
►Law of contractsLaw of contracts
►Issues for e-commerceIssues for e-commerce

4. Contracts - the basicsContracts - the basics
►OfferOffer
►AcceptanceAcceptance
►Intention to enter legal relationsIntention to enter legal relations
►ConsiderationConsideration
►Legal capacityLegal capacity
►Genuine consentGenuine consent

5. OfferOffer
►Clear statement of termsClear statement of terms
►Person who makes it is prepared to bePerson who makes it is prepared to be
boundbound
►Not just an “invitation to treat”Not just an “invitation to treat”

6. AcceptanceAcceptance
►Unqualified agreement to terms of offerUnqualified agreement to terms of offer
►Express or inferred by conductExpress or inferred by conduct
►Can’t be forced on unwilling personCan’t be forced on unwilling person

7. Time of creation of contractTime of creation of contract
►Contract formed at time and place theContract formed at time and place the
acceptance is communicated to offeroracceptance is communicated to offeror

8. Termination orTermination or
revocation of offerrevocation of offer
►Can be revoked prior to acceptanceCan be revoked prior to acceptance
►Revocation must be communicated toRevocation must be communicated to
offerorofferor

9. CertaintyCertainty
►Essential parts of contract must be clearEssential parts of contract must be clear
and completeand complete
►Courts may imply a meaningCourts may imply a meaning
►Uncertain term can be “severed”Uncertain term can be “severed”

10. ConsiderationConsideration
►Valuable considerationValuable consideration
►Passing between parties to contractPassing between parties to contract
►Can’t be unlawful or immoralCan’t be unlawful or immoral

11. IntentionIntention
►ExpressExpress
►Inferred from the circumstancesInferred from the circumstances
►Must be genuine consent - not obtainedMust be genuine consent - not obtained
under duressunder duress

12. CapacityCapacity
►AgeAge
►Intellectual capacityIntellectual capacity

13. Terms and conditionsTerms and conditions
►ExpressExpress
►ImpliedImplied

14. FormalitiesFormalities
►Oral or writtenOral or written
►Writing required under statute eg for sale ofWriting required under statute eg for sale of
landland

15. Practical concernsPractical concerns
for e-commerce dealsfor e-commerce deals
►Identity and capacity of seller or buyerIdentity and capacity of seller or buyer
►Authenticity of offer and acceptance (digitalAuthenticity of offer and acceptance (digital
signatures)signatures)
► When and where contract formedWhen and where contract formed
►Governing lawGoverning law
►Terms and conditions (click through)Terms and conditions (click through)

16. Practical Concerns forPractical Concerns for
e-commerce deals(2)e-commerce deals(2)
►Agreement on electronic payment systemAgreement on electronic payment system
►Security of information exchangesSecurity of information exchanges
►Consequences on breachConsequences on breach
►Storing electronic data to prevent alterationStoring electronic data to prevent alteration

17. Electronic Transactions ActElectronic Transactions Act
►Federal law with mirror State laws (NSW,Federal law with mirror State laws (NSW,
VIC, WA)VIC, WA)
►To remove obstacles to electronicTo remove obstacles to electronic
transactions, communications, signaturestransactions, communications, signatures
and record keepingand record keeping
►1 July 2001 applies to all federal laws1 July 2001 applies to all federal laws
unless exemptedunless exempted

18. Electronic Transactions Act(2)Electronic Transactions Act(2)
► Validates electronic transactionsValidates electronic transactions
► Given in writing met electronically nowGiven in writing met electronically now
 Govt can specify technology requirementsGovt can specify technology requirements
 Business requirement valid only with consentBusiness requirement valid only with consent
► Signatures-parties free to agree on methodSignatures-parties free to agree on method
► Production and retention of documentsProduction and retention of documents
 Method must ensure integrity and accessibilityMethod must ensure integrity and accessibility
► Time and place of dispatch and receipt ofTime and place of dispatch and receipt of
communicationscommunications

19. Electronic Transactions(3)Electronic Transactions(3)
 Time ofTime of dispatchdispatch is when it enters the firstis when it enters the first
information system outside control of senderinformation system outside control of sender
 Time ofTime of receiptreceipt is when it enters an informationis when it enters an information
system designated by the addressee forsystem designated by the addressee for
receiving it.receiving it.
 PlacePlace of dispatch and receipt taken to beof dispatch and receipt taken to be
respective places of businessrespective places of business

20. Electronic Transactions (4)Electronic Transactions (4)
►Record keeping OK electronically if lawRecord keeping OK electronically if law
says:says:
 Information to be recorded in writingInformation to be recorded in writing
 A written document to be keptA written document to be kept
 An electronic communication to be keptAn electronic communication to be kept
►Records must be kept identifying origin,Records must be kept identifying origin,
destination, time of sending and receipt ofdestination, time of sending and receipt of
electronic communicationelectronic communication

21. Making a contractMaking a contract
►What terms do you want to include?What terms do you want to include?
►What risks are you trying to avoid?What risks are you trying to avoid?
►How will disputes about contract be dealtHow will disputes about contract be dealt
with?with?
►What is the governing law?What is the governing law?
►Who will sign it?Who will sign it?

22. Setting up aSetting up a
business entitybusiness entity
► Sole traderSole trader
► PartnershipPartnership
► CompanyCompany
► TrustTrust

23. Sole traderSole trader
►All profitsAll profits
►All lossesAll losses
►All liabilitiesAll liabilities
►Own name or choose business nameOwn name or choose business name
►Register business nameRegister business name

24. PartnershipPartnership
►Carrying on a businessCarrying on a business
►In commonIn common
►With a view to profitWith a view to profit
►Established by written agreement, oralEstablished by written agreement, oral
agreement or conductagreement or conduct

25. PartnershipPartnership
►Partnership Act 1892Partnership Act 1892 (NSW)(NSW)
►Corporations LawCorporations Law: Not more than 20: Not more than 20
partners (except doctors, solicitors andpartners (except doctors, solicitors and
accountants)accountants)

26. PartnershipPartnership
►Profit sharingProfit sharing
►Joint and several liabilityJoint and several liability
►Fiduciary duties to partnersFiduciary duties to partners

27. CompaniesCompanies
►Corporations ActCorporations Act
►Artificial legal entityArtificial legal entity
►Liability of members can be limitedLiability of members can be limited

28. CompaniesCompanies
►ConstitutionConstitution
►Directors dutiesDirectors duties
►Limits on raising money from the publicLimits on raising money from the public

29. CompaniesCompanies
►The “corporate veil”The “corporate veil”
►Lifting the veil: fraud, agency, paying moreLifting the veil: fraud, agency, paying more
dividends than profit, incurring debts whendividends than profit, incurring debts when
company insolventcompany insolvent

30. CompaniesCompanies
Form a company by:Form a company by:
►Registering nameRegistering name
►Lodge application with ASICLodge application with ASIC
►Registered officeRegistered office
►Names of directors and membersNames of directors and members

31. Which structure?Which structure?
►Where are you getting your money from?Where are you getting your money from?
►What is your risk/liability?What is your risk/liability?
►Who will be in control?Who will be in control?
►What are the ongoing costs?What are the ongoing costs?

32. What is a domain nameWhat is a domain name
►Human friendly form of an Internet addressHuman friendly form of an Internet address
►Actual address is an Internet Protocol (IP)Actual address is an Internet Protocol (IP)
numbernumber
►System globally administered by ICANNSystem globally administered by ICANN
►Generic top level domains (gTLDs)Generic top level domains (gTLDs)
 .com, .org, .net, .edu, .gov, .biz.com, .org, .net, .edu, .gov, .biz
►Country code top level domains (ccTLDs)Country code top level domains (ccTLDs)

33. Domain name registrationDomain name registration
in Australiain Australia
►open and closed domainsopen and closed domains
►open - .com, .org, .net, .info, .bizopen - .com, .org, .net, .info, .biz
►closed - .gov, .edu, .mil, .museumclosed - .gov, .edu, .mil, .museum
►auDA administers .com.au spaceauDA administers .com.au space
►to register in .au space must be ato register in .au space must be a
commercial entity registered and tradingcommercial entity registered and trading
in Australia..in Australia..

34. Domain Names (cont)Domain Names (cont)
►Licensed on a first come-first served basisLicensed on a first come-first served basis
►Domain Names never meant to conferDomain Names never meant to confer
property rights.property rights.
►Clash with Trade Marks.Clash with Trade Marks.
►auDA has a dispute resolution schemeauDA has a dispute resolution scheme
which applies to all domain nameswhich applies to all domain names
registered or renewed from 1 August 2002.registered or renewed from 1 August 2002.
►ICANN has the UDRP for .com etc domains.ICANN has the UDRP for .com etc domains.

35. Domain Names and otherDomain Names and other
business identifiersbusiness identifiers
►Trade MarksTrade Marks
►Personality RightsPersonality Rights
►Place NamesPlace Names
►Tension with domain namesTension with domain names
 Reverse domain name hijackingReverse domain name hijacking
 cybersquattingcybersquatting