E commerce & contracts

Law of E-Commerce & Contractual Obligation in India
Definition of E-Commerce
E-Commerce v. E-Business
Definition of Commerce
Contracts & Business done Online

1. Doing Business in the Information Age By, MOHAMMED HAROON RASHEED B.A.LL.B (Hons.), [BSW] & [LLM] Advocate Email ID: [email protected] 1 ( c)2013 MD HAROON RASHEED, ADVOCATE

2. Definition of Commerce The exchange of goods and services for money Consists of: Buyers - these are people with money who want to purchase a good or service. Sellers - these are the people who offer goods and services to buyers. Producers - these are the people who create the products and services that sellers offer to buyers. 2 ( c)2013 MD HAROON RASHEED, ADVOCATE

3. E-commerce vs. E-business E-commerce is about doing business electronically E-commerce conducting financial transactions electronically E-business is conducting business on the Internet E-business is the transformation of business processes through the Internet 3 ( c)2013 MD HAROON RASHEED, ADVOCATE

4. Electronic Commerce: Definition E- Commerce The process of buying, selling, or exchanging products, services, or information via computer networks 4 ( c)2013 MD HAROON RASHEED, ADVOCATE

5. Electronic- Business: Definition E-Business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization 5 ( c)2013 MD HAROON RASHEED, ADVOCATE

6. Four Categories of E-Commerce B2B B2C C2B C2C Consumers Business And selling to... Business originating from... Business Consumers 6 (c) MD HAROON RASHEED, ADVOCATE

7. Distinct Categories of E-Commerce 7 Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: Free Markets, Dell and General Electric Business to Consumer (B2C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co (c) MD HAROON RASHEED, ADVOCATE

8. Distinct Categories of E-Commerce 8 Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay . Examples: Owners.com, Monster Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group. Example: www.planetfeedback.com (c) MD HAROON RASHEED, ADVOCATE

9. Advantages of Electronic Commerce Electronic commerce can increase sales and decrease costs If advertising is done well on the Web, it can get a firm’s promotional message out to potential customers in every country Using e-commerce sales support and order-taking processes, a business can: Reduce costs of handling sales inquiries Provide price quotes 9 (c) MD HAROON RASHEED, ADVOCATE

10. Advantages of Electronic Commerce It increases purchasing opportunities for buyers Negotiating price and delivery terms is easier 10 ( c)2013 MD HAROON RASHEED, ADVOCATE

11. Disadvantages of Electronic Commerce Perishable grocery products are much harder to sell online It is difficult to: Integrate existing databases and transaction-processing software into software that enables e-commerce Cultural and legal obstacles also exist 11 ( c)2013 MD HAROON RASHEED, ADVOCATE

12. Disadvantages of Electronic Commerce 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) 12 ( c)2013 MD HAROON RASHEED, ADVOCATE

13. Limitations of E-commerce To organizations: lack of security, reliability, standards, changing technology, pressure to innovate, competition, old vs. new technology To consumers: equipment costs, access costs, knowledge, lack of privacy for personal data, relationship replacement To society: less human interaction, social division, reliance on technology. 13 (c) MD HAROON RASHEED, ADVOCATE

14. The Three Basic Genre Generally the basic forms of "E-Contracts" that a person comes across are: The Shrink-wrap Agreements . The Click-wrap or Web-wrap Agreements.  The Browse wrap Agreements. 14 ( c)2013 MD HAROON RASHEED, ADVOCATE

15. Shrink-wrap agreements The name was derived from the "shrink-wrap" packaging that generally contains the CD Rom of Software's. The terms and conditions of accessing the particular software are printed on the shrink-wrap cover of the CD and the purchaser after going through the same tears the cover to access the CD Rom. 15 ( c)2013 MD HAROON RASHEED, ADVOCATE

16. Shrink-wrap agreements Sometimes additional terms are also imposed in such licenses which appear on the screen only when the CD is loaded to the computer . The user always has the option of returning the software if the new terms are not to his liking for a full refund. 16 ( c)2013 MD HAROON RASHEED, ADVOCATE

17. Shrink-wrap agreements Case: ProCD Inc. v. Zeidenberg 86 F 3d 1447, 1449 (US. 7 th Circuit Court 1996) The Court upheld the Shrink- wrap agreement as a valid contract. 17 ( c)2013 MD HAROON RASHEED, ADVOCATE

18. Shrink-wrap agreements Limitation: The terms are not available to the purchaser until after payment is made. 18 ( c)2013 MD HAROON RASHEED, ADVOCATE

19. Click-wrap agreements Click-wrap agreements are those whereby a party after going through the terms and conditions provided in the website or program has to typically indicate his assent to the same, by way of clicking on an "I Agree" icon or decline the same by clicking "I Disagree". 19 ( c)2013 MD HAROON RASHEED, ADVOCATE

20. Click-wrap agreements Examples : permission to access a site or downloading of a software or selling something by way of a website. 20 ( c)2013 MD HAROON RASHEED, ADVOCATE

21. Click-wrap agreements Case: In Re Real Network , Inc. Privacy Litigation. 2000 WL 631341 *4 (N.D. III) The Court held that the internet users had agreed to a license agreement for arbitration. 21 ( c)2013 MD HAROON RASHEED, ADVOCATE

22. Click-wrap agreements Advantage: The user has the opportunity to see the terms of the before assenting or paying the money. Limitation: Doubt whether the user clearly or expressly assented to the agreement. 22 ( c)2013 MD HAROON RASHEED, ADVOCATE

23. Browse Wrap Tranactions Terms and Conditions posted on the screen. Purports to bind anyone who uses the website or services. Does not require the user to click on anything to indicate his assent to these terms before paying for the product. 23 ( c)2013 MD HAROON RASHEED, ADVOCATE

24. Browse Wrap Tranactions Case: In Specht v. Netscape communications Corp. 150 F . Supp 2d 585(S.D.N.Y. 2001) The court held the following scheme did not suffice to create a contract. Pollstar v. Gigmania Ltd ., F. 2d 974 (2000) Court upheld the validity of the BW agreemensts . 24 ( c)2013 MD HAROON RASHEED, ADVOCATE

25. Browse Wrap Tranactions Limitations: No mandatory Agreements No Clear Notice of the terms. 25 ( c)2013 MD HAROON RASHEED, ADVOCATE

26. Consideration Any contract (except under exceptional circumstances as permitted by law) is not valid, without valid consideration. Typically, consideration is the compensation or promise that is given in return for a promise (in most cases the money paid or promised for goods or services). In other words, consideration is the price or the return for a promise that turns that promise into a legally binding contract. 26 ( c)2013 MD HAROON RASHEED, ADVOCATE

27. Consideration In electronic commerce, consideration does not pose any special concern except, perhaps, for the risks associated with payment online or through electronic means. 27 ( c)2013 MD HAROON RASHEED, ADVOCATE

28. THANK YOU 28 ( c)2013 MD HAROON RASHEED, ADVOCATE