Chapter 11

Electronic commerce (e-commerce) The sale of goods and services by computer over the

Internet Internet (Net)

A collection of millions of computers that provide a network of electronic connections between computers

11-2Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

An electronic connection of millions of computers that support a standard set of rules for the exchange of information Websites and webpages are stored on servers throughout

the world▪ Servers are operated by Internet service providers (ISPs)

11-3Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Electronic written communication between individuals using computers connected to the Internet

Electronic mail contract (e-mail contract): A contract that is entered into by the parties by use of e-mail

11-4Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act) A federal statute that ▪ Places certain restrictions on persons and businesses that send

unsolicited commercial advertising (spam) to e-mail accounts

▪ Prohibits falsified headers

▪ Prohibits deceptive subject lines

▪ Requires spammers to label sexually oriented e-mail as such

11-5Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Companies that provide consumers and businesses with access to the Internet

Communications Decency Act: A federal statute which provides that: Internet service providers (ISPs) are not liable for the

content transmitted over their networks by e-mail users and websites

11-6Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A contract that is entered into by purchasing, leasing, or licensing goods, services, software, or other intellectual property from websites operated by sellers, lessors, and licensors Assuming that all the elements to establish a traditional

contract are present, a web contract is valid and enforceable

11-7Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Any computer system that has been established by a seller to accept orders Counteroffers are not effective against electronic agents

Electronic Signatures in Global and National Commerce Act (E-SIGN Act): A federal statute that Recognizes electronic contracts as meeting the writing

requirement of the Statute of Frauds Recognizes and gives electronic signatures (e-signatures)

the same force and effect as pen-inscribed signatures on paper

11-8Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Uniform Computer Information Transactions Act (UCITA) A model state law that creates contract law for the licensing

of information technology rights Drafted by the National Conference of Commissioners on

Uniform State Laws

11-9Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A contract that transfers limited rights in intellectual property and informational rights Licensor: An owner of intellectual property or

informational rights who transfers rights in the property or information to the licensee

Licensee: A party who is granted limited rights in or access to intellectual property or informational rights owned by a licensor▪ Exclusive license: A license that grants the licensee exclusive rights

to use informational rights for a specified duration

11-10Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

11-11Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A contract whereby the owner of software or a digital application grants limited rights to the owner of a computer or digital device to use the software or digital application for a limited period and under specified conditions E-licensor – Owner of the program or application E-licensee – Owner of the computer or digital device to

whom the license is granted

11-12Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A detailed and comprehensive written agreement between a licensor and a licensee Sets forth the express terms of their agreement

The parties to a contract for the licensing of information owe a duty to perform the obligations stated in the contract

11-13Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A federal statute that makes it a crime to intercept an electronic communication At the point of transmission While in transit When stored by a router or server After receipt by intended recipient

11-14Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Stored electronic communications may be accessed without violating the law by the following The party or entity providing the electronic communication

service Government and law enforcement entities that are

investigating suspected illegal activity

11-15Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

A unique name that identifies an individual’s or company’s website

Registration of domain names Determine whether any other party already owns the name Complete an online registration form Make the payment online

Domain name extensions

11-16Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Cybersquatting – Registering a domain name of another party’s trademarked name or famous person’s name

Anticybersquatting Consumer Protection Act (ACPA): A federal statute that permits: Trademark owners and famous persons to recover domain

names that use their names where the domain name has been registered by another person or business in bad faith

11-17Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

11-18Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.