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Electronic Contracting - Essay Example

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The author of this essay "Electronic Contracting" comments on the use of electronic contracting. According to the text, as an initial matter, the amount of commerce which takes place electronically continues to increase at significant levels.  …
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"Electronic Contracting"

Download file to see previous pages There are, however, many potential pitfalls. These pitfalls may be characterized as legal, regulatory, and more practical considerations involving the identity of parties to a contract and intent with respect to the particular details of an electronic transaction. First, as demonstrated by the California law, there are many exceptions to the electronic contracting framework. Certain types of commercial transactions are explicitly exempted from the law. Where transactions are dependent or interrelated, for example, there may be problems deciding the extent to which the electronic contracting law or some other commercial transaction legislation prevails. There are also very real regulatory issues. Securities brokers, to illustrate, may attempt to consummate commercial transactions in jurisdictions where they are not licensed to conduct business. These regulatory issues can lead to confusion regarding the proper regulatory authority, the jurisdiction entitled to enforce the law, and the very source of the law itself. There very well may also be prolonged litigation to decide whether particular schemes for contracting electronically constitute a writing and whether and when to apply state schemes for electronic contracting and when to apply the older uniform commercial codes. Finally, there are more practical potential pitfalls. Though some have hailed the advent of digital signatures, there remains a very real risk that consumer and business identities may be misrepresented and abused. ...Download file to see next pagesRead More
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