What You’ll Learn • Tips for safer Internet shopping (p. 284) • How to identify consumer-friendly Web sites for international online shopping • (p. 286)
What You’ll Learn • How to describe the law that permits the use of electronic signatures on contracts (p. 286) • How to identify legal safeguards to protect your right to computer privacy • (p. 286)
Why It’s Important Electronic commerce is on the cutting edge of today’s business world. As you learn more about electronic commerce, you will advance further in today’s society.
Legal Terms • electronic commerce (p. 284) • electronic signature (p.286) • online privacy (p. 286) • Federal Trade Commission (FTC) (p. 287)
Section Outline Electronic Commerce Shopping Safely on the Internet Worldwide Shopping Electronic Signatures Online Privacy
Pre-Learning Question What is electronic commerce?
Electronic Commerce Electronic commerce, also called e-commerce, is the buying and selling of goods and services, or the transfer of money, over the Internet.
Shopping Safely on the Internet Shopping online offers many benefits. You can shop when you want, you can find almost anything you want, and prices may be very good. However, there can be some dangers to shopping on the Internet.
Shopping Safely on the Internet To avoid these dangers, here are some tips: • Shop with companies you know. • Keep your password private. • Pay by credit or charge card. • Keep a record.
Internet Auctions Internet auctions offer good buys, but they can be risky. Do your homework before buying online. • Know the seller. • Know the product. • Know the auction site. • Know how to bid.
Worldwide Shopping Online shopping has opened up a world of available goods. Answer these questions to determine whether a Web site is safe for international online shopping.
Worldwide Shopping • Are the prices listed in U.S dollars or another currency? • Does the company ship internationally? • How long will delivery take?
Worldwide Shopping • Will unexpected taxes or duties be added to the price? • Who can help you resolve any problems?
Electronic Signatures • E-Sign is a federal law that permits the use of electronic signatures and records. • An electronic signature is a method of signing an electronic message.
Electronic Signatures • It identifies a particular person as the source of the message. • It indicates that person’s approval of the information in the message.
Electronic Signatures • Under E-Sign, an electronic signature can be used on a contract if the parties agree. • The Uniform Electronic Transactions Act (UETA), adopted by numerous states, is a similar law.
Your friend, Eric, is a film collector and wants to buy a new DVD from an online retailer. List some safety precautions he can take in making his purchase.
ANSWER Answers may include shopping with a company he knows, keeping his password private, paying by credit card, and keeping a record.
If Eric wanted to buy a rare, collector’s film from a small international online retailer, what are some of the additional concerns he should address before making his purchase?
ANSWER He should ask about currencies, shipping, duties and taxes, customer service, and return policies.
Pre-Learning Question How is your online privacy protected?
Online Privacy Online privacy is a part of your more general right to privacy. It concerns your identity, movement, and personal commercial activities on the Internet.
Online Privacy • Many laws protect your rights to online privacy. • Children (under thirteen) are protected with special statutes, such as the Children’s Online Privacy Protection Act.
Online Privacy Many state legislatures are adopting laws regulating Internet privacy, which can create confusion among consumers. There is a movement for the U.S. Congress to set national standards that override state legislation.
Online Privacy The Federal Trade Commission (FTC) investigates violations of the FTC Act, which states that, “unfair or deceptive acts or practices in or affecting commerce are hereby declared unlawful.”
Section 13.3Assessment Reviewing What You Learned • What are some tips for safe Internet shopping?
Section 13.3Assessment Reviewing What You Learned Answer Shop with companies you know; keep password private; pay by credit card; keep records of purchases.
Section 13.3Assessment Reviewing What You Learned • How can you determine the consumer friendliness of a Web site when shopping internationally?
Section 13.3Assessment Reviewing What You Learned Answer Consider whether the prices are in U.S. dollars and whether international shipping is offered. Research delivery times and taxes.
Section 13.3Assessment Reviewing What You Learned • Describe the law that permits the use of electronic signatures on contracts.
Section 13.3Assessment Reviewing What You Learned Answer Electronic signatures can be used on a contract if the parties agree.
Section 13.3Assessment Reviewing What You Learned • Identify legal safeguards that protect your right to computer privacy.
Section 13.3Assessment Reviewing What You Learned Answer The right to Internet privacy is protected by many laws. Children under thirteen are given special protection.
Section 13.3Assessment Critical Thinking Activity Internet Transaction Indicate as true or false whether the UCC law of sales governs the following transactions made over the Internet:
Section 13.3Assessment Critical Thinking Activity Internet Transaction • Buying a used computer • Hiring lawn care services • Buying stocks • Selling a parcel of land • Buying unborn puppies
Section 13.3Assessment Critical Thinking Activity Answer Internet Transaction • Buying a used computer (true) • Hiring lawn care services (false) • Buying stocks (false) • Selling a parcel of land (false) • Buying unborn puppies (true)
Section 13.3Assessment Legal Skills in Action Internet Fraud With your classmates, brainstorm about various types of Internet fraud. Discuss ways to avoid becoming a victim of fraud.
Section 13.3Assessment Legal Skills in Action Answer Internet Fraud Discussions will vary, but should recognize how the safety tips for Internet shopping help reduce fraud.