What is e-commerce?
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Transcript What is e-commerce?
Doing Business in the
Information Age
John Corker
GENL0230
What is e-commerce?
Includes:
► Online business to business transactions
► Online business to consumer
transactions
► Digital delivery of products and services
► Online merchandising
► Automated telephone transactions eg
phone banking
► EFTPOS and other automated transfer
systems
Contracts
►Law
of contracts
►Issues for e-commerce
Contracts - the basics
► Offer
► Acceptance
► Intention
to enter legal relations
► Consideration
► Legal capacity
► Genuine consent
Offer
► Clear
statement of terms
► Person who makes it is prepared to be
bound
► Not just an “invitation to treat”
Acceptance
► Unqualified
agreement to terms of offer
► Express or inferred by conduct
► Can’t be forced on unwilling person
Time of creation of contract
► Contract
formed at time and place the
acceptance is communicated to offeror
Termination or
revocation of offer
► Can
be revoked prior to acceptance
► Revocation must be communicated to
offeror
Certainty
► Essential
parts of contract must be clear and
complete
► Courts may imply a meaning
► Uncertain term can be “severed”
Consideration
► Valuable
consideration
► Passing between parties to contract
► Can’t be unlawful or immoral
Intention
► Express
► Inferred
from the circumstances
► Must be genuine consent - not obtained
under duress
Capacity
► Age
► Intellectual
capacity
Terms and conditions
► Express
► Implied
Formalities
► Oral
or written
► Writing required under statute eg for sale of
land
Practical concerns
for e-commerce deals
► Identity
and capacity of seller or buyer
► Authenticity of offer and acceptance (digital
signatures)
► When and where contract formed
► Governing law
► Terms and conditions (click through)
Practical Concerns for
e-commerce deals(2)
► Agreement
on electronic payment system
► Security of information exchanges
► Consequences on breach
► Storing electronic data to prevent alteration
Electronic Transactions Act
► Federal
law with mirror State laws (NSW,
VIC, WA)
► To remove obstacles to electronic
transactions, communications, signatures
and record keeping
► 1 July 2001 applies to all federal laws unless
exempted
Electronic Transactions Act(2)
► Validates
electronic transactions
► Given in writing met electronically now
Govt can specify technology requirements
Business requirement valid only with consent
► Signatures-parties
free to agree on method
► Production and retention of documents
Method must ensure integrity and accessibility
► Time
and place of dispatch and receipt of
communications
Electronic Transactions(3)
Time of dispatch is when it enters the first
information system outside control of sender
Time of receipt is when it enters an
information system designated by the
addressee for receiving it.
Place of dispatch and receipt taken to be
respective places of business
Electronic Transactions (4)
► Record
keeping OK electronically if law says:
Information to be recorded in writing
A written document to be kept
An electronic communication to be kept
► Records
must be kept identifying origin,
destination, time of sending and receipt of
electronic communication
Making a contract
► What
terms do you want to include?
► What risks are you trying to avoid?
► How will disputes about contract be dealt
with?
► What is the governing law?
► Who will sign it?
Setting up a
business entity
►
►
►
►
Sole trader
Partnership
Company
Trust
Sole trader
► All
profits
► All losses
► All liabilities
► Own name or choose business name
► Register business name
Partnership
►Carrying
on a business
►In common
►With a view to profit
►Established by written agreement, oral
agreement or conduct
Partnership
► Partnership
Act 1892 (NSW)
► Corporations
Law: Not more than 20
partners (except doctors, solicitors and
accountants)
Partnership
► Profit
► Joint
sharing
and several liability
► Fiduciary
duties to partners
Companies
► Corporations
► Artificial
Act
legal entity
► Liability of members can be limited
Companies
► Constitution
► Directors
► Limits
duties
on raising money from the public
Companies
► The
“corporate veil”
► Lifting
the veil: fraud, agency, paying more
dividends than profit, incurring debts when
company insolvent
Companies
Form a company by:
► Registering name
► Lodge application with ASIC
► Registered office
► Names of directors and members
Which structure?
► Where
are you getting your money from?
► What is your risk/liability?
► Who will be in control?
► What are the ongoing costs?
What is a domain name
► Human
friendly form of an Internet address
► Actual address is an Internet Protocol (IP)
number
► System globally administered by ICANN
► Generic top level domains (gTLDs)
.com, .org, .net, .edu, .gov, .biz
► Country
code top level domains (ccTLDs)
Domain name registration
in Australia
► open
and closed domains
► open - .com, .org, .net, .info, .biz
► closed - .gov, .edu, .mil, .museum
► auDA administers .com.au space
► to register in .au space must be a
commercial entity registered and trading
in Australia..
Domain Names (cont)
► Licensed
on a first come-first served basis
► Domain Names never meant to confer
property rights.
► Clash with Trade Marks.
► auDA has a dispute resolution scheme
which applies to all domain names
registered or renewed from 1 August 2002.
► ICANN has the UDRP for .com etc domains.
Domain Names and other
business identifiers
► Trade
Marks
► Personality Rights
► Place Names
► Tension with domain names
Reverse domain name hijacking
cybersquatting