SlideShare a Scribd company logo
Doing Business in theDoing Business in the
Information AgeInformation Age
John CorkerJohn Corker
GENL0230GENL0230
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
ContractsContracts
►Law of contractsLaw of contracts
►Issues for e-commerceIssues for e-commerce
Contracts - the basicsContracts - the basics
►OfferOffer
►AcceptanceAcceptance
►Intention to enter legal relationsIntention to enter legal relations
►ConsiderationConsideration
►Legal capacityLegal capacity
►Genuine consentGenuine consent
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”
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
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
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
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”
ConsiderationConsideration
►Valuable considerationValuable consideration
►Passing between parties to contractPassing between parties to contract
►Can’t be unlawful or immoralCan’t be unlawful or immoral
IntentionIntention
►ExpressExpress
►Inferred from the circumstancesInferred from the circumstances
►Must be genuine consent - not obtainedMust be genuine consent - not obtained
under duressunder duress
CapacityCapacity
►AgeAge
►Intellectual capacityIntellectual capacity
Terms and conditionsTerms and conditions
►ExpressExpress
►ImpliedImplied
FormalitiesFormalities
►Oral or writtenOral or written
►Writing required under statute eg for sale ofWriting required under statute eg for sale of
landland
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)
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
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
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
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
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
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?
Setting up aSetting up a
business entitybusiness entity
► Sole traderSole trader
► PartnershipPartnership
► CompanyCompany
► TrustTrust
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
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
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)
PartnershipPartnership
►Profit sharingProfit sharing
►Joint and several liabilityJoint and several liability
►Fiduciary duties to partnersFiduciary duties to partners
CompaniesCompanies
►Corporations ActCorporations Act
►Artificial legal entityArtificial legal entity
►Liability of members can be limitedLiability of members can be limited
CompaniesCompanies
►ConstitutionConstitution
►Directors dutiesDirectors duties
►Limits on raising money from the publicLimits on raising money from the public
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
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
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?
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)
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..
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.
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

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E commerce(1)

  • 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
  • 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