E-Business Innovation: Cases and Online Readings
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Future Developments
Part 2: Legal Issues
Readings in this section address some of the requirements and challenges of legalizing e-business. Issues introduced include how to maintain confidentiality on the Web, the authenticity and acceptance of digital signatures, and the technology to support those systems. A pending question for consideration is: Where does “offer-acceptance” occur in legal contracts (i.e., how does it depend on where the buyer is, where the seller is, where the server resides, where the business is registered, and where the goods are received)? Further, suggestions are offered throughout the readings for how to reduce legal indemnity in a world where legal precedent is lacking for the resolution of technological issues.

Another important issue to consider is how culture impacts the legalities of e-business. What is acceptable in one country is a legal violation in another. For example, 411.com, an Internet telephone directory absorbed by Yahoo, places “cookies”—digital markers that can trace Internet usage—on the PCs of Web surfers who use their service. However, under French privacy laws cookies are illegal; further, the French are concerned about invasion of privacy. Therefore, when 411.com expanded into France, the company decided to eliminate the use of cookies on its French-language site. In the future, the legal development of e-business will need to be addressed at the international level—the degree to which international laws can be harmonized is unknown.

Reading 1: Garcia-Tobar (2001)

Reading 2: Meder (2000)