Week 6 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 6: ELECTRONIC COMMERCE & ELECTRONIC CONTRACTS – PA...

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 6: ELECTRONIC COMMERCE & ELECTRONIC CONTRACTS – PART II Week 6: Outline Electronic Contracts Contract of Sale Thai Electronic Transactions Act B.E. 2544 Definition of some key terms Application of Thai Electronic Transactions and Thai Civil and Commercial Law Code in relevant issues E-commerce Payment and Security System Reminder: No Midterm Examination 2 ELECTRONIC CONTRACTS C O N T I N U E … Regulating Offer and Acceptance for E-commerce “standing offer” principle (see next slide) vs. “invitation to treat” principle (see Lecture 5) 4  Example: Vending machine At a train station or car park: A customer pay his money and gets a ticket. He cannot get his money back. He is committed beyond recall. He committed at the very moment Standing when he put his money into the machine = The acceptance takes place Offer in the instance = The contract is concluded at that time. 5  Amazon’s Conditions of sale: Your order is an offer to Amazon to buy the product(s) in your order. When you place an order to purchase a product from Amazon, we will send you an e-mail confirming receipt of your order and containing the details of your order (the ‘Order Confirmation E-mail’). The Order Confirmation E-mail is acknowledgement that we have received your order, and does not confirm acceptance of your offer to buy the Which principle is product(s) ordered. applied to this? We only accept your offer, and conclude the contract of sale for a product ordered by you, when we dispatch the product to you and send e-mail confirmation to you that we have dispatched the product to you (the ‘Dispatch Confirmation E-mail’). … 6 CONTRACT OF SALE  Contract of Sale: Definition Civil and Commercial Law Code of Thailand Section 453: Sale is a contract whereby a person, called the seller, transfers to another person, called the buyer, the ownership of property, and the buyer agrees to pay to the seller a price for it. 8 Contract of Sale: Forms Civil and Commercial Law Code of Thailand can't move Ex Horse /. Section 456: (paragraph 1) A sale of immovable property is void unless it is made O in writing and registered by the competent official. The same rule applies to ships or vessels of five tons and over, including floating houses and to beasts of burden. (paragraph 2) An agreement to sale or to buy or the promise to sale or to buy as mentioned of the first paragraph is not enforceable by action unless there be some written evidence signed by the party liable or deposited or paid a part of some debts. (paragraph 3) The provisions of the foregoing paragraph shall be applied to a contract of sale of movable property where the agreed price is twenty-thousand baht or upwards. 9  Mutual obligation Contract of No form – Except sale of Sale: immovable properties Elements (See Section 456) The purpose is to transfer ownership. Property = Subject of the contract 10  THAI ELECTRONIC TRANSACTIONS ACT Thai Electronic Transactions Act Thai Electronic Transactions Act B.E. 2544 is intended to facilitate e-commerce by allowing some commercial acts, such as offers, acceptance and signatures to be made through… e-mail electronic data interchange (E.D.I) telegram telex facsimile other means to be conducted via the internet networks. 12 Signature (General Principles) Civil and Commercial Law Code of Thailand Section 9: (paragraph 1) Whenever a writing is required by law, it is not necessary that it be written by the person from whom it is required, but it must bear his signature. (paragraph 2) A fingerprint, cross, seal or other such a mark affixed to a document instead of signature is equivalent to a signature if it is certified by the signature of two witnesses. (paragraph 3) The provisions of paragraph two shall not be applied to a fingerprint, cross, seal or such other mark affixed to a document before the competent authorities. 13 Allowing electronic forms and delivery to be used for formal contracts is only half of the solution to online formal electronic contracting. Most formal contracts not only have requirements of form, they also usually require adoption of the terms of the contract, usually through the addition of a signature or Electronic signature-equivalent. Signature This is difficult for an electronic document which has no physical structure upon which a signature may be added => inventive in designing structure to replace traditional signatures is therefore required. 14 Primary function of a Signature The primary function is authentication. The following altogether are the sub-functions that a signature provides evidence of: 1.) The identity of the signatory. 2.) The signatory intended the ‘signature’ to be his signature. 3.) The signatory approves of and adopts the contents of the document. 15 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; … 16 Definitions Thai Electronic Transactions Act B.E. 2544 Section 4: … “electronic signature” means letter, character, number, sound or any other symbol created in electronic form and affixed to a data message in order to establish the association between a person and a data message for the purpose of identifying the signatory who involves in such data message and showing that the signatory approves the information contained in such data message; “information system” means a system of (data message) processing by using an electronic device for generating, sending, receiving, storing or processing a data message; “electronic data interchange” means the despatch or receipt of information by an electronic from computer to computer using an agreed standard; … 17 Definitions Thai Electronic Transactions Act B.E. 2544 Section 4: … “originator” means a person by whom the data message purports to have been sent or generated prior to storage before being sent pursuant to the method designated by such person, whether such data message is sent by such person, or generated in the name of or on behalf of such person, but does not include an intermediary with respect to that data message; “addressee” means a person who is intended by the originator to receive the data message and who receives such data message, but does not include an intermediary with respect to that data message; “intermediary” means a person who, on behalf of another person, sends, receives or stores a particular data message, including the providing of other services with respect to that data message; … 18 Legal Effect and Enforceability of Data Message Thai Electronic Transactions Act B.E. 2544 Section 7: Information shall not be denied legal effect and enforceability solely on the ground that it is in the form of a data message. 19 Electronic Transactions From Section 4 of Thai Electronic Transactions Act B.E. 2544, “electronic transaction” means a transaction in which an electronic means is used in whole or in part. (i.e. using internet or other open networks.) There are 2 main types of electronic transactions: Electronic transaction for sale of physical goods or services Electronic transaction for sale of digital goods or services 20 Electronic Transaction: Offer/Acceptance Thai Electronic Transactions Act B.E. 2544 Section 13 An offer or acceptance in entering into a contract may be expressed by means of a data message. A contract shall not be denied legal effect solely on the grounds that such offer or acceptance is made in the form of a data message. 21 Electronic Transaction: Declaration of Intention Thai Electronic Transactions Act B.E. 2544 Section 14 As between the originator and the addressee of a data message, a declaration of will or notice may be made in the form of a data message. 22 Electronic Transaction: Declaration of Intention Thai Electronic Transactions Act B.E. 2544 Section 22 The dispatch of a data message is deemed to occur when such data message enters an information system outside the control of the originator. 23  Electronic Transaction: Declaration of Intention Thai Electronic Transactions Act B.E. 2544 Section 23 The receipt of a data message is deemed to occur from the time when such data message enters an information system of the addressee. If the addressee has designated an information system for the purpose of receiving data message specifically, it shall be deemed that the receipt of a data message occurs at the time when the data message enters the designated information system. However, if such data message is sent to an information system of the addressee that is not the designated information system, it shall be deemed that the receipt of a data message occurs at the time when the data message is retrieved from that information system. The provision of this section applies notwithstanding that the place where the information system is located may be different from the place where the data message is deemed to be received by the addressee under Section 24. 24 PAYMENT & SECURITY Tension between Security & Other Values Ease of use The more security measures added, the more difficult a site is to use, and the slower it becomes Public safety and criminal uses of the Internet Use of technology by criminals to plan crimes or threaten nation-state 26 Security Threats in the E-commerce Environment 3 key points of vulnerability in e-commerce environment: Client Server Communications pipeline (Internet communications channels) 27 Typical E-commerce Transaction 28 Public Key Cryptography: A Simple Case 29 References Information Technology Law: The Law & Society (2019), 4th Edition, Chapter 16; by A. Murray. LAW: Digital Information, Business and Legal English, Chapter 3 and 4, by W. Neitivanich et al. Laws Related to Computer (2015), Chapter 5, Ramkhamhaeng University Press, by P. Sawaddisarn. E-commerce 2019: Business. Technology. Society (15th Edition), Chapter 4, by Laudon and Traver 30