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Understanding Online Contracting: Legal Frameworks, Compliance, and Consumer Rights

In the realm of online contracting, various laws govern transactions, including the Uniform Commercial Code (UCC), particularly Article 2, and the Uniform Computer Information Transactions Act (UCITA). This article explores the sales of goods and computer information, as well as concerns related to regulatory law such as SEC guidelines. It covers key concepts like required signatures under the Statute of Frauds, disclaimers of warranties, consumer protections, and digital signatures. Additionally, it examines clickwrap and shrinkwrap contracts, emphasizing consent and user rights in software licensing.

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Understanding Online Contracting: Legal Frameworks, Compliance, and Consumer Rights

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  1. ON-LINE CONTRACTING • What law applies? • Uniform Commercial Code, Article 2 • Uniform Computer Information Transaction Act (UCITA) - formerly UCC, Art. 2B • Common law of contracts • Regulatory law, e.g. SEC

  2. ON-LINE CONTRACTING • What am I selling on-line? • Goods-UCC, Art.2 • Computer information-UCITA • Insurance - regulatory law • Securities - regulatory law

  3. ON-LINE CONTRACTING • Required signature • Statute of Frauds-$500 or more, etc. • Disclaimers - express and implied warranties • Consumer laws- request for credit reports • Digital signatures

  4. ON-LINE CONTRACTING • Clickwrap or Shrinkwrap Contracts • UCC Art. 2-602(1): sales contracts may be made in any manner, including conduct • use of the software constitutes consent • UCITA: shrinkwrap license-”mass market license” (MML)-same license for all users • right to return software cost free • cost of restoring computer if damaged

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