Eu Electronic Money Directive example essay topic

The operation of law automatically includes some terms into contracts, for example a term that goods will be of satisfactory quality is implied by the Sale of Goods Act 1979. Further, even if properly incorporated into a contract, certain terms (such as unreasonable limitations of liability) are not enforceable against consumers or others who signed up to standard terms (Unfair Contract Terms Act 1977). To enhance transparency and the confidence of those buying online the EU Electronic Commerce Directive (which is soon to have legal effect in the UK) will regulate all providers of services provided electronically for payment, which will include online sellers of goods and services. Online businesses will need to provide information including name, address and email address, and any prices must clearly state whether tax and delivery costs are included. Prior to an order being placed, the seller must clearly provide details of: The steps required to conclude a contract. Whether or not the contract will be filed by the seller and whether or not it will be accessible.

The languages offered for the conclusion of the contract. Which codes of conduct the seller subscribes to and how they can be consulted electronically. Further, the seller must: If terms and conditions are provided, allow the customer to store and reproduce them. Provide the technical means for identifying and correcting input errors prior to placing the order.

Acknowledge receipt of an order without undue delay. Several security issues arise when contracting over the internet. There can be doubt about the identity of the person sending a communication (authenticity), its content (integrity) and preventing a party from denying they sent the communication (non-repudiation). This is of particular importance if the transaction value is high. On a technical level these issues are being addressed through encryption services administered by trusted third parties, and on a legal level through legislation such as the EU Electronic Signatures Directive (implemented in part in the UK by the Electronic Communications Act 2000 which gives electronic signatures legal effect) and the principles being developed in the Uniform Rules on electronic signatures and certification authorities by UN CITRAL (the United Nations Commission on International Trade Law).

In the UK, the Government has proposed that cryptography service providers be self-regulated, subject to the success of the self-regulation. Among users there is understandable concern about releasing payment details on the internet although increasingly internet sellers accept payment by debit or credit card, often using Secure Sockets Layer (SSL) security. To allow credit card payments, a business will need to enter into a merchant agreement with a bank or credit card company. The application process is more rigorous when sales are to be made over the internet ('cardholder not present') rather than face-to-face. Various systems of electronic money and micro payments have been proposed principally for low value transactions, but none is yet in wide use. For example, the EU has proposed an e-purse system for small payments.

From the legal side, the EU Electronic Money Directive establishes a framework for the regulation and supervision of electronic money institutions which may issue electronic money. Once a contract is made (or a party believes a contract is made) disagreements can arise, for example regarding the terms of the contract or whether obligations have been properly performed. If there is an international element, resolution of the dispute requires determination of the applicable law and the country whose courts have jurisdiction over the dispute. There are significant exceptions in favour of consumers.