Electronic Commerce Session 1: An Introduction to Electronic Commerce.
1 11 Chapter 11 The Environment of Electronic Commerce: International, Legal, Ethical, and Tax...
-
Upload
mariana-stell -
Category
Documents
-
view
231 -
download
2
Transcript of 1 11 Chapter 11 The Environment of Electronic Commerce: International, Legal, Ethical, and Tax...
1
11
Chapter 11
The Environment of
Electronic Commerce:
International, Legal, Ethical,
and Tax Issues
Electronic Commerce
2
11
Objectives
International electronic commerce Laws that govern electronic commerce
activities Ethics issues that arise for companies
engaged in electronic commerce Taxes that are levied on electronic
commerce
3
11
International Nature ofElectronic Commerce
Language issues “Think globally, act locally” by establishing
local language versions of the Web site By 2001, 60% of Web use and 40% of
e-commerce sales will involve at least one party outside the United States
The most used non-English languages for U.S. companies are Spanish, German, Japanese, French, and Chinese
4
11
Europages Home PageFigure 11-1
5
11
International Nature ofElectronic Commerce
Culture issues Errors can stem from subtle language and
cultural standards General Motor’s Nova Pepsi’s “come alive” campaign Baby food jars in Africa Cartoon cows in India White-colored elements in Japan
6
11
International Nature ofElectronic Commerce
Culture issues Unwillingness to allow citizens free access
to the Internet Proxy servers that filter content Laws to prohibit publications that conflict
with governmental or religious views, or must conform to the local language and customs
7
11
International Nature ofElectronic Commerce
Infrastructure issues Variations and inadequacies of computers
and software connected to the Internet Heavy government-regulated
telecommunications limit support of Internet availability
Inadequate bandwidth available for Internet data packets
Complex flow of information for international transactions
8
11
A Typical International Trade TransactionFigure 11-2
9
11
The Legal Environment ofElectronic Commerce
Businesses operating on the Web face two complicating factors The Web extends a company’s reach
beyond traditional boundaries The speed and efficiency of
communications on the Web
10
11
The Legal Environment ofElectronic Commerce
Borders and jurisdiction Geographic boundaries on culture have
historically been set by the distances involved
The relationship between geographic and legal boundaries include
power
effects
legitimacy
notice
11
11
Culture Determines Laws and Ethical StandardsFigure 11-3
12
11
The Legal Environment ofElectronic Commerce
Power Control over physical space The ability of a government to exert control
over a person or corporation is called jurisdiction
Level of power asserted by a government is limited to that which is accepted by the culture within its geographic boundaries
Strife can erupt when geographic, cultural, and legal structures do not coincide
13
11
The Legal Environment ofElectronic Commerce
Effects Personal or corporate actions have stronger
effects on people and things that are nearby than on those that are far away
Legitimacy The legitimate right to create and enforce laws
derives from the mandate of those who will be subject to those laws
Notice Physical boundaries, when crossed, provides
notice that a set of rules have changed
14
11
Jurisdiction on the Internet
Governments that want to enforce laws regarding business conducted on the Internet must establish jurisdiction over that conduct
A court has sufficient jurisdiction if it has both subject-matter and personal jurisdiction
15
11
Jurisdiction on the Internet
Subject-matter jurisdiction The court’s authority to decide the type of
dispute Rules of subject-matter jurisdiction are
very clear and easy to apply Very few disputes arise over subject-
matter jurisdiction
16
11
Jurisdiction on the Internet
Personal jurisdiction Determined by the residence of the parties A “forum selection clause” in a contract
dictates that the contract will be enforced according to the laws of a particular state or government
Tortious acts are an exception, such as cases of defamation, fraud, and theft of trade secrets
17
11
Jurisdiction on the Internet
John Marshall Law School’s Center for Information Technology and Privacy Law’s Web site includes links to current cases, law review articles, and other updated resources
18
11
John Marshall Law School Cyberspace Law SiteFigure 11-4
19
11
Contracting and Contract Enforcement in Electronic Commerce
A contract has two elements Offer – declaration of willingness to buy or sell
a product or service Sufficient details to be firm, precise, and
unambiguous Can be revoked as long as no consideration has
been accepted
Acceptance – expression of willingness to take an offer
When one party makes an offer that is accepted, a contract is created
20
11
Written Contracts on the Web
In general, contracts are valid even if they are not in writing or signed
Contracts for the sale of goods worth over $500 and for actions to be performed that cannot be completed within one year must be created by a signed writing
Writing does not require pen or paper
21
11
Written Contracts on the Web
Writing exists on many tangible forms Tape recordings of spoken words Computer files on disks or tape Faxed copies of written documents
Signatures are any symbol executed or adopted for the purpose of authenticating a writing Names on telegrams, telexes, faxes, letterhead are
all considered signatures
22
11
Written Contracts on the Web
Warranties Any contract for the sale of goods includes
implied warranties Product is fit for the purposes for which it is
intended
Explicit warranties can be created by the seller in general statements in advertising materials
A warranty disclaimer, conspicuously stated, states that the seller will not honor some or all implied warranties
23
11
Written Contracts on the Web
Digital IDs are often used to verify the identity of a person or corporation when entering into a contract
Digital signatures and certificates can attest to the title and capacity of a person holding a particular public key
24
11
Web Site Content
Trademark infringement occurs when a Web site designer uses any trademarked name, logo, or other identifying mark without the express permission to do so
Deceptive trade practices can lead to trademark dilution, a reduction of the distinctive quality of a trademark by alternative uses
25
11
Advertising RegulationFigure 11-5
In the U.S., advertising is primarily regulated by the Federal Trade Commission (FTC)
26
11
FTC Policy Statements
Bait advertising Consumer lending and leasing Endorsements and testimonials Energy consumption statements for
home appliances Guarantees and warranties Prices
27
11
Ethical Issues in Electronic Commerce
Defamatory statements are statements that are false and injure the reputation of another person or company, are highly subjective and hard to distinguish from justifiable criticism
Online statements about competitors should always be carefully reviewed for elements of defamation before published on the Web
28
11
Privacy Rights and Obligations
Rights to privacy can vary greatly from one country to another
Principles for Web site administrators to adhere to include Use personal data to improve customer service Do not share customer data without permission Tell customers what data is collected and how it is
to be used Give customers the right to delete any information
collected about them
29
11
Taxation and Electronic Commerce
Online businesses are potentially subject to several types of taxes Income taxes
Levied by national, state, and local governments on the net income generated
Transaction taxes Includes sales taxes, use taxes, and customs duties
Property taxes Levied by state and local governments on the
personal property and real estate used by the business