1 The law of electronic commerce

Electronic commerce refers to all commercial transactions based on the electronic processing and transmission of data, including text, sound and images. This involves transactions over the internet, plus electronic funds transfers and Electronic Data Interchange (EDI). Onone level, electronic commercebegan in themid-1800s,when thefirst contract was entered into using the telegraph or telephone. However, the expression ‘electronic commerce’ is typically used in connection with the expansion of commerce using computers and modern communications, most notably the internet and cyberspace. The development of security protocols has aided the rapid expansion of electronic commerce by substantially reducing commercial risk factors. The advantages of electronic commerce to commercial parties include ease of access, anonymous browsing of products, larger choice, the convenience of shopping from the computer and enormous efficiencies. The disadvantages include the potential for invasion of privacy and security risks. There are also questions regarding jurisdiction, standards, protection of intellectual property, taxation, trade lawandmanyother issues.Nevertheless, acceptance of electronic products and services has grown substantially. Security is of paramount importance in electronic commerce. Public key cryptology was invented in response to security concerns and has revolutionised electronic commerce. Communications are now relatively secure: digital signatures or certificates permit the authentication of the sender of amessage or of an electronic commerce product. This book addresses legal issues relating to the introduction and adoption of various forms of electronic commerce. Whether it is undertaking a commercial transaction on the World Wide Web, sending electronic communications to