Electronic Commerce has developed so rapidly that is difficult for legislation to keep up. It would not be feasible to have laws governing e-business worldwide. The legal framework for trading online can be unclear. The European Commission proposes to make it the responsibility of the individual member states to determine legal paths. The EU is trying to ensure that e-commerce is adequately regulated and that "e-customers" have the same protection as consumers with bricks and mortar industries. Different laws govern what you can buy over the Internet. Items that are illegal in one country may be purchased over the Internet. For example, iTrip FM transmitters for iPods are available to purchase over the Internet. These devices allow the user to hear an iPod on a standard radio receiver, which is legal in the U.S. However it is illegal to broadcast on the FM waveband in Ireland without a license and such a device would be illegal to buy from a conventional store but consumers are still capable of ordering such devices from the U.S.
over the Internet. Directives are laying down the legal framework for electronic commerce in Europe from the European Commission.
The Uniform Computer Information Transactions Act and the Uniform Electronic Transactions Act that govern electronic business arose out of concern the skyrocketing popularity of e-commerce and its processes put e-commerce outside the boundaries of traditional contract law (Cheeseman, 2004). UCITA is "intended to bring the same uniformity and certainty to the rules that apply to information technology transactions that the Uniform Commercial Code does for the sale of goods" (Wikipedia, 2006). Therefore, UCITA recognizes the validity and enforceability of electronic contracts.
UCITA has a major influence on electronic business because it specifically governs electronic contracts. The provisions dictate rules and guidelines for electronic transactions that determine an...