Week 5 GTS231 Law and Technology PDF

GTS231 L A W A N D T E C H N O L O G Y S E M E S T E R I / 2 0 2 4 DR.SOMRUDEE DEEPAISARN SCHOOL OF ICT @ SIIT WEEK 5: ELECTRONIC COMMERCE & ELECTRON...

GTS231 L A W A N D T E C H N O L O G Y S E M E S T E R I / 2 0 2 4 DR.SOMRUDEE DEEPAISARN SCHOOL OF ICT @ SIIT WEEK 5: ELECTRONIC COMMERCE & ELECTRONIC CONTRACTS – PART I Week 5: Outline Introduction to E-commerce Informal and Formal Contracts Formation of Contracts Offer and Acceptance Introduction to Electronic Contracts Thai Electronic Transactions Act B.E. 2544 2 ELECTRONIC COMMERCE: THE INTRODUCTION  E-commerce (Electronic Commerce) is the use of the Internet, the World Wide Web, and mobile applications to transact business Formal definition: Digitally-enabled commercial transactions between and among organizations and individuals Also called “digital commerce” in some literature What is E- Began in 1995 Commerce? 4 Consumers are viewed as passive targets of advertising campaigns. Consumers cannot Can only buy search for the best price and quality whatever is sold in nearby Traditional easily. areas. Commerce Information about prices, costs, and fees could be hidden from the consumers. 5 Unique Features of E-commerce Technology 6  Internet: worldwide network of computer networks built on common standards Technological Building World Wide Web (the Web): an Blocks information system running on Internet infrastructure that provides access to Underlying billions of web pages E-commerce Mobile Platform: provides the ability to access in Internet from a variety of mobile devices e.g. smartphones, tablets and other ultra lightweight laptop computers 7 Types of E-Commerce E-commerce types classified by the nature of the market relationship: Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) ex · posting using social media platform 8 Types of E-Commerce E-commerce types classified by marketing campaign: Social e-commerce to promote - product Mobile e-commerceSimilar Local e-commerce - media to use promote local products 9 Total Internet Users in Thailand - determinesucceso http://webstats.nbtc.go.th/netnbtc/INTERNETUSERS.php Worldwide Growth of B2C E-commerce B2C e-commerce has grown exponentially since 1995. Based on data from eMarketer, Inc., (as of 2017) 12 Something to wonder about E-commerce… How can we be sure we are protected when doing business online? How do we contract online? How do we make payments? How do we sign an agreement? 13 CONTRACTS Contract: Definition A contract is a legally enforceable agreement between two or more parties that creates an obligation to do (or not to do) particular things. The term “party” can refer to an individual natural person or legal person. 15 Elements of Contract Two parties, at least (with a mutual agreement). Contractual capacity (parties to the contract must become sui juris and be competent in order to enter into a contract). Purpose of the contract (each party either promises to perform an act that the party is not legally required to perform, or promises to abstain form performing an act that it is legally entitled to perform). Formation of contract: Offer and acceptance (to be discussed) Form of the contract (to be discussed) 16 Informal Contracts Every day people may enter into dozens of legally binding contracts without thinking about it! buy foods e.g. Contracts of sale with shops, supermarkets, etc. Contracts for the supply of services with hairdressers, dentists, etc. Contracts of carriage with public transport operators 17 Informal Contracts The reason these contracts may be formed without the exchange of written, or even oral, terms is because these are informal contracts. Informal contract = contracts that have no legally defined form and which may be formed simply by a meeting of the mind. written evidence , sign X ↓ still contorts legally enforceable 18  Informal Contracts: Example Kiera is travelling from home to university for class. She decides to take the bus. She gets on the bus and pays her fare and then takes a seat on the bus. She does not say anything to the driver; the driver does not say anything to her yet. A contract has been formed where the customer agrees to pay the fare for the journey undertaken and to comply with the bus company’s general conditions of carriage and the driver (as agent for the bus company) agrees to carry the customer in accordance with the same general conditions of carriage. party customer bus : , company passenger no written , verbal agreement tion , meeting of mind 19 Contract Formation Simple rules for the formation of informal contract: To form a contract, all parties to the contract must agree on the terms of the contract, and to be bound by these terms. In general: A contract is usually assumed to take place when an offer is accepted with consideration. Many of the rules of contract formation affect the time and even place of formation of the contract. Even in informal contracts they prescribe certain conditions for the formation of a concluded contract which are of particular import in dealing with electronic and online contracts. 20  - Offer and- O Acceptance - declaration of intention An offer is an expression by one person to another of their willingness to agree on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. celles. be burger or can The contract is formed when acceptance of an offer has been communicated to theOofferor initiate by the offer Geive offeree. ↓ - B tion accept ot -not from - 21  Offer and Acceptance The Civil and Commercial Law Code of Thailand Section 355: A person who, without specifying a period for acceptance, makes an offer to another at a distance cannot withdraw his offer within a time within which notice of acceptance might reasonably be expected. A offer to by house for 10 mB , B if agree , accept in 1 month 22 Offer and Acceptance The Civil and Commercial Law Code of Thailand Section 356: An offer made to a person, who is present without specifying a period for acceptance, may be accepted only there and then. This applies also to an offer made by one person to another on the telephone. Accept , rejecth 23 Formal Contracts & Contract Forms A written contract is not required for some contracts as previously explained. Some other types of contract requires a written document in the form that is prescribed by law, for example, a sale of immovable property (e.g. house, land) For Thai law, a form is a proof of the existence of a specific contract which can be; (Evidence in writing) Contract made in writing Contract made in writing and is registered by the competent official 24 ELECTRONIC CONTRACTS: THE INTRODUCTION Importance of Electronic Contracts The ability to trade and to make payment is the foundation of all modern societies, and the information society is no different in this respect. The information society has provided a number of commercial opportunities for entrepreneurs. Examples include: Bill Gates – Microsoft software packages Steve Jobs – Hardware and software development for Apple Jeff Bezos – Amazon (selling goods/services in the information society) 26 Regulating Offer and Acceptance for E-commerce With no case law to clarify the issue, commentators were left to speculate as to the nature of e-commerce sites. Most agreed that despite the lack of a human actor the interactive nature of websites rendered them more similar to self-service shop displays than to vending machines or ticket machines which issued a restricted choice of products. The lack of clarity though rised very different approaches developing throughout Europe, “standing offer” principle vs. “invitation to treat” principle. Such a lack of harmonization could adversely affect the development of e-commerce in Europe as a significant proportion of both B2B and B2C transaction where likely to take place across borders. 27  Inviting someone to enter into a contract in the way, for example… Displaying goods in a department store; A customer can look for the good that he want and check for the price before making a decision to buy it. If he is satisfied with the good and proceeds to check out or pays for it, he already makes and offer to buy it. Invitation to If the cashier check the price and hand the good to the customer, this is when Treat the acceptance of offer is made. As a result, the contract of sale is formed in the instance. 28  THAI ELECTRONIC TRANSACTIONS ACT Thai Electronic Transactions Act Thai Electronic Transactions Act B.E. 2544 Chapter 1: Electronic Transactions Chapter 2: Electronic Signatures Chapter 3: Service Business Relating to Electronic Transactions Chapter 4: Electronic Transactions in the Public Sector Chapter 5: Electronic Transactions Commission Chapter 6: Penalties 30 Application Thai Electronic Transactions Act B.E. 2544 Section 3: (paragraph 1) This Act shall apply to all civil and commercial transactions performed by using a data message, except the transactions prescribed by a Royal Decree to be excluded from this Act wholly or partly. (paragraph 2) The provisions of paragraph one do not prejudice any law or rule enacted for consumer protection. (paragraph 3) This Act shall apply to the transactions in connection with the carrying out of the affairs of the State as prescribed in Chapter 4. *Chapter 4 Electronic Transactions in the Public Sector 31 Definitions Thai Electronic Transactions Act B.E. 2544 Section 4: In this Act: “transaction” means any act relating to a civil and commercial activity or carrying out of the affairs of the State as prescribed in Chapter 4. “electronics” means an application of an electron means, an electrical means, an electromagnetic means or any other means of a similar nature including an application of an optical means, a magnetic means or a device in connection with an application of any of the aforesaid means; “electronic transaction” means a transaction in which an electronic means is used in whole or in part; “information” means an incident or fact regardless of whether expressed in the form of a letter, number, sound, image or any other form capable of connotation by itself or through any means; “data message” means information generated, sent, received, stored or processed by electronic means, such, as electronic data interchange (EDI), electronic mail, telegram, telex or facsimile; … 32 References Information Technology Law: The Law & Society (2019), 4th Edition, Chapter 16; by A. Murray. LAW: Digital Information, Business and Legal English, Chapter 3, by W. Neitivanich et al. E-commerce 2014, 2017, 2019: Business. Technology. Society; Pearson Education Ltd.; by Laudon and Traver. 33