Ans 1.

Perhaps the clearest indication of the growing importance of e-commerce in the global economy is the rapidity with which Internet use has grown and spread during the last decade. The boom in ecommerce also includes increased use of other media for trade, such as the telephone, television, fax, and electronic payment. Because e-commerce became such an integral part of the global economy. Developing countries, particularly those without strong e-commerce sectors, are in favor of classifying e-commerce as trade in services. They argue that they need the flexibility of regulating e-commerce in order to nurture their own industries, and that liberalizing too soon would give an unfair advantage to the e-commerce industries in developed countries. Developing countries such as India and China who have booming e-commerce sectors are in favor of liberalizing trade in ecommerce, but would prefer to do so under the GATS so that they can begin with industries that have a comparative advantage. 1)Issues relating to Access: 2)Issues relating to Trust: 3)Issues relating to Ground Rules: 1)Issues relating to Access: In ecommerce two or more than two parties communicate with each other to perform tangection it may be various type and various purpose may be there but access include three issues as given below We can analyse issues to access under following subheading i. Access to infrastructure If person A want to start Ecommerce than he must have access to internet service without which it is not possible to establish any communication. telecommunication infrastructure must be properly established to start ecommerce . ii. Access to content People should not only accessible to infrastructure but must habitual to use the ecommerce as a method of trangection . if people not adopt the method it may be useless to have such mode of commerce . it must competitive with other methods .

iii. Universal access Digitally divided is the concept for universally divided people from each other , where they have no access to each other which is prima facia requisite for Ecommerce. 2)Issues relating to Trust: Trust is a social and psychological phenomenon that is widely acknowledged as contributing to many forms of exchange, including e-commerce exchanges.

The idea of risk is often associated with trust. Trust signalling is always undermined by the hijacking of the signalling systems by untrustworthy operators, says Kieron OHara, from the University of Southampton i. Privacy

Privacy is one of the most complex legal issues facing e-commerce ventures today. Many sites, such as the one in our case study, have little interest in actively profiling their users or discovering personal information about them. However, these sites will often collect significant amounts of personally identifiable data that may trigger liability risks. Some of this data is actively supplied by users. For example, the WGU site collects names, physical and email addresses, and credit card information through forms. Users may also voluntarily supply personal information in their threaded discussion messages, which are archived on the site. On the other hand, some of this data is passively collected. The host server records routine information about each visit. Some of the site's banner ads allow third-party advertisers to track users' browsing habits. We can break this task down into four main steps. First, we must determine what information is collected by the site. Second, we must evaluate the potential liability for those information collection practices. Third, we must choose whether to develop a privacy policy to disclose those practices. And, fourth, we must verify our compliance with statutes or regulations.

ii. Security Information is an essential resource for all businesses today and is the key to growth and success. However, you need to ensure that the information held on your IT systems is secure. The impact of a security breach may be far greater than you would expect. The loss of sensitive or critical information may not only affect your competitiveness and cashflow but also damage your reputation - something which may have taken you years to establish and which may be impossible to restore. However, the internet brings its own security issues which businesses must consider. Some of the threats posed by hackers on the internet include: gaining access to sensitive data such as employee records, price lists, catalogues and valuable intellectual property, and then altering, destroying or copying them altering your website to damage your reputation or direct your customers to another site gaining access to financial information about your business, employees or your customers for the purposes of fraud iii. Consumer protection As we have seen earlier that producer as well as consumer require some technology and knowledge by which he can utilize the facility in absence of any one element ecommerce we cant think about ecommerce . B2C e-commerce is likely to remain small because of these constraints. In fact, when the e-tailing market grows in size, high delivery costs, logistical bottlenecks as well as regulatory requirements will act as major barriers. Coupled with this are the cultural barriers where most shoppers are uncomfortable buying items they are unable to see or touch. Consumer protection is also not very effective. If goods are not

delivered after electronic placement of orders, the consumers may have to follow long process for redressal of their grievances.

iv. Content regulation Owners of websites should guard against the potential sources of liability which could lead to legal claims against them. Since the Internet knows no boundaries, the owner of a website could be confronted with legal liability for non-compliance or violation of laws of almost any country. Liability may arise due to various activities inter alia due to hyper linking (inserting a clickable link to another site) and framing (incorporating another website into a frame or window appearing within a webpage on the linking site) fraud, libel and defamation, invasion of privacy, trademark and copyright infringement.

Ans. 2 E-commerce is the process of buying and selling of various products and services by businesses through the Internet. It deals various kind of business concern, from retail site of the consumer, which includes auction. The main focus is to concentrate on business substitutes involving goods and services between various corporations. E-commerce is the purpose of Internet and the web to Conduct business but when we concentrate on commercial deals among organizations and individuals demanding selective information systems under the guarantee of the firm it accepts the form of e-business. Nowadays, the word e is hitting momentum.

Ecommerce definition and types of ecommerce Ecommerce (e-commerce) or electronic commerce, a subset of ebusiness, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically. Contrary to popular belief, ecommerce is not just on the Web. In fact, ecommerce was alive and well in business to business transactions before the Web back in the 70s via EDI (Electronic Data Interchange) through VANs (Value-Added Networks). Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C. 1. Business-to-Business Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. 2. Business-to-Consumer Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole. Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come! 3. Consumer-to-Business A consumer posts his project with a set budget online and within hours companies

review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions. 4. Consumer-to-Consumer There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. 5. Intra-business E-Commerce Electronic transactions within the organization can be expressed as intra-business type of e-commerce. Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce. G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-toBusiness), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-toGovernment) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous.

Ans 3 1. Fairness and truthfulness in advertising Ecommerce is new concept people is not habitual for it there is need to inshore truthfulness in advertising . There is need to have a authority which could regulate mechanism whish cold establish authenticity .Many websites advertise goods or services to customers. The traditional laws of advertising, which apply to ordinary sales, are enacted in the interest of all consumers to prevent deceptive and unfair acts or practices. These laws would also be applicable to advertising or marketing on the Internet. The websites may be subject to any liability that may arise due to false designations, origin, misleading description of fact that are likely to cause confusion or misrepresent the nature, characteristics, quality or geographic origin of the goods or services that are offered for sale in an advertisement. In addition to advertising laws, depending on the kind of business, the websites would also have to comply with the laws of applicable to such a business. Certain countries have introduced legislations that place limitations on Internet advertising. In such a case, would a website owner be subject to liability for violation of the laws of a country even though it was not aware of such limitations or restrictions on advertisement? For example, the courts have in certain cases held a website of another country liable for fraudulent Internet advertising in violation of a state statute.Further, an advertisement may be exposed to liability under the consumer protection laws since it may be subject to different interpretations by the consumer in different jurisdictions. Certain websites simply display advertisements or banners of other companies. In such a case, would the owner of the website be subject to liability for misleading or fraudulent advertisements that are displayed on its website? The

website should contain appropriate disclaimers disclaiming any such liability. Most countries have stringent laws with respect to spamming. Website owners must ensure that they use legal methods of advertisements and that the method used does not amount to spamming. 2. Labeling and other disclosure requirements such as guarantees, product standards and specifications: It is difficult to establish mechanism which can inshore the quality and quantity which is one of the problem need to be solved. 3. Refund mechanism in the case of cancelled orders, defective products, returned purchases and lost deliveries etc. Taking the global nature of e-commerce it would be really difficult to get the money back from the seller. 4. Online fraud: The biggest obstacle in the growth of e-commerce is the issue of security. Internet is not a secured medium of communication. There are tools or options available to hackers whereby they can not only monitor but also control any data communicated over the internet. Particularly, people are not comfortable while providing their financial information (credit card no. etc.) online due to the fact that this information can be hacked and misused. 5. Privacy protection: The nature of internet technology is such that private information of the online customers can be easily collected and recorded on the server side. The buying pattern of a customer can be known to an e-shop with the help of certain sophisticated tools. You know that cookies can be used to track customers online. On one hand these technologies are useful for doing customization but on the other, they can be said to have caused the breach of informational privacy rights of a person. 6. Authentication and security of information:

In traditional and online trading environments, consumers are entitled to have their privacy respected. Websites should provide the customers with choices regarding the use of their personal information, and incorporate security procedures to limit access to customer information by unauthorised parties. Privacy policies and procedures should be clearly explained to customers. Although respecting consumer privacy rights is a legal requirement, it also represents good business practice. If customers trust a site and business then they are more likely to trade with it. Many people are not willing to disclose their personal information on the Web. It is up to individuals to decide how much personal information they are willing to disclose and how it might be used. Interestingly, one survey found that many people who disclose personal information do so in hope of financial benefit, such as winning a sweepstakes

7.

Lack of Consumer education:

As we have seen earlier that producer as well as consumer require some technology and knowledge by which he can utilize the facility in absence of any one element ecommerce we cant think about ecommerce . B2C e-commerce is likely to remain small because of these constraints. In fact, when the e-tailing market grows in size, high delivery costs, logistical bottlenecks as well as regulatory requirements will act as major barriers. Coupled with this are the cultural barriers where most shoppers are uncomfortable buying items they are unable to see or touch. Consumer protection is also not very effective. If goods are not

delivered after electronic placement of orders, the consumers may have to follow long process for redressal of their grievances.

Ans 4 Electronic commerce has proven to be a powerful tool for expanding consumer empowerment. Competition in the electronic marketplace drives prices down, offers consumers greater choice, and provides them with the necessary material information they need to make informed purchasing decisions. However, the expansive growth of global electronic commerce, especially between consumers in one country who are buying goods or services from businesses based in other countries, will continue unabated only if consumers feel confident that they will have rights of redress if a dispute should arise. Alternative dispute resolution mechanisms (ADR) offer a way to avoid this jurisdictional dilemma. ADR systems offer a timely and efficient approach for addressing consumer complaints that cannot be resolved through direct contact with a business. Through an established ADR mechanism, the involvement of an independent third party dispute resolver ensures that a consumer's concerns will be addressed fairly. At the same time, ADR offers businesses the advantages of timeliness, costeffectiveness of dispute resolution, and continued consumer loyalty. ADR also lets both parties avoid the additional delays and the costs of appealing to either a government administrative agency or the courts. By offering consumers a viable alternative to legal redress mechanisms, ADR also avoids overburdening both administrative and judicial systems; while at the same time protecting the consumers' right to seek legal redress should they be dissatisfied with the results of the ADR process. Finally, when cross-border, on-line transactions are involved, ADR provides a means of avoiding the jurisdictional issues that arise when the consumer resides in one country and the business is based in another country. * Fairness: The ADR mechanism must be perceived as treating both parties at least as equitably and fairly as a formal government administrative or legal procedure. Consumer dispute mechanisms must have structure, rules and procedures that ensure that all parties' rights are protected, and that every aspect of the mechanism operates with regard to the parties' rights to due process. * Visibility: Consumers must be fully knowledgeable of the existence of ADR mechanisms. While it is desirable that consumers have knowledge of these systems prior to purchase, it is critical that this information be available at the time that a dispute arises. * Accessibility: The ADR mechanism must be readily accessible by consumers when a dispute arises. Accessibility not only means that the mechanism can be called upon when needed, but that there are no unreasonable barriers to access (such as unreasonable costs). * Cost-Effectiveness: The cost of an ADR mechanism should be significantly less for both consumers and businesses than commensurate formal administrative or legal actions. This is particularly true where formal actions involve time- consuming dispositions, hearings, legal representation and crossborder logistics. * Timeliness: To be effective, third party ADR mechanisms must resolve disputes quickly if they are to meet the needs of consumers, businesses and governments. In contrast, courts and consumer protection agencies may not be as responsive. Quick resolution however, must take into account the

need for the parties to provide (or the mechanism to collect), sufficient information upon which to base a resolution. * Finality: The ADR mechanism should, to the greatest extent possible, ensure that resulting decisions fully and finally resolve individual consumer disputes. * Enforceability: The ADR mechanism should ensure that decisions rendered and agreed-to by the parties are quickly and completely honoured. Types of ODR The following are the important types of ODR used in the modern E Commerce: Automated Negotiation Automated Negotiation relates to those methods in which the technology takes over (aspects of) a negotiation. Most of the ODR services in this area are so-called 'blind-bidding' services. This is a negotiation process designed to determine economic settlements for claims in which liability is not challenged. The blind bidding service may be thought of as a type of auction mechanism where some or all information about the players' bids is hidden. There are two forms of automated negotiation, Double Blind Bidding, which is a method for single monetary issues between two parties, and Visual Blind Bidding, which can be applied to negotiations with any number of parties and issues. Assisted Negotiation In Assisted Negotiation the technology assists the negotiation process between the parties. The technology has a similar role as the mediator in a mediation. The role of the technology may be to provide a certain process and/or to provide the parties with specific (evaluative) advice. Mediators use information management skills encouraging parties to reach an amicable agreement by enabling them to communicate more effectively through the rephrasing of their arguments. Conciliation is similar to mediation, but the conciliator can propose solutions for the parties to consider before an agreement is reached. Also, assisted negotiation procedures are designed to improve parties communications through the assistance of a third party or software. In fact, it has been argued that assisted negotiation, conciliation, and even facilitation, are just different words for mediation. The major advantages of these processes, when used online, are their informality, simplicity and user friendliness

Online Negotiation-cum- Mediation Arbitration is a process where a neutral third party (arbitrator) delivers a decision which is final, and binding on both parties. It can be defined as a quasi-judicial procedure because the award replaces a judicial decision. However, in an arbitration procedure parties usually can choose the arbitrator and the basis on which the arbitrator makes the decision.

Document/email arbitration in this method of ODR, the whole process of arbitration is carried out through emails like filing of arbitration agreement, filing of , filing of documentary evidence, written submissions, written hearing, closing statements etc are all done through email. example Arbitration .Com. Peer Jury

In this volunteer jurors select disputes they would like to decide, review them, seek clarifications and give their decisions. E.g. courthouse.com In the end, the ultimate success of any ADR system will depend upon consumer satisfaction; did the ADR mechanism resolve a consumer's complaint in a fair, timely and effective manner? To achieve this necessary level of consumer confidence, ADR processes need to provide real remedies, which provide real results, and are practical to use.

Ans . 5

The government of India by passing IT (Information Technology) Act 2000 and further amending it on 27th October 2009 has given fillip to cyber law. But various issues are not specifically covered by the Act, such as copyright, payment issues, media convergence, domain name, cybersquating and jurisdiction. While these have wide ranging ramifications for the growth of e-commerce of India. Copyright Infringement and Internet With the emergence of the internet and increasing use of the worldwide web possibilities of infringement of copyright have become mind boggling free and easy access on the web together with possibilities of down loading has created new issued in copyright infringement. Taking content from one site, modifying it or just reproducing it on another site has been made possible by digital technology and this has posed new challenges for the traditional interpretation of individual rights and protection. Any person with a PC (Personal Computers) and a modem can become a publisher. Downloading, uploading saving transforming or crating a derivative work is just a mouse click away. A web page is not much different than a book a magazine or a multimedia CD-Rom and will be eligible for copyright protection, as it contains text graphics and even audio and videos.Copyright law grants the owner exclusive right to authorize reproduction of the copy righted works preparation of derivative works, distribution etc. However application of this concept on the internet cannot be strictly applied to copyright. Duplication of the information is an essential step in the transmission of information on the internet and even plain browsing information at a computer terminal (which is equivalent to reading a book or a magazine at book store) may result in the creation of an unauthorized copy since a temporary copy of the work is created in the RAM of the users computer for the purpose of access. The law on the subject evolving and the general view is that more accessing a web page would not be an infringement as the copy created is temporary or ephemeral. Another common issue amongst web site owners is to create links to other sites within the design of their own web pages. Would such linking be considered a copy right violation as these links give access to other copy righted sites? Although strictly speaking it may be a violation of copyright. But there is an implied doctrine of public access for linking to other web pages. The Internet was created on the basic of being able to attach hypertext links to any other location and it is assumed that once a page is put on the net, implied consent is given, unless specifically prohibited by the web site owner. Computer Software And Internet Piracy Software is defined as a set of instructions which when incorporated in a machine readable form or in capable of causing a computer to perform a particular task. To put it simply, it is a series of

commands which can be understood by the machine. There are three essential types of software which help to function the computer, micro code it is a programme which controls the details of execution, the operating system software which control the sources of a computer and manages routine tasks and is a necessary requirement for a computer to function and the third is a application software which is designed to perform a particular task. Piracy occurs when copyrighted software is made available to users to download without the express permission of the copyright owner. Such illegal software is offered over online sources such as online advertisements newsgroups bulletin board service and auction sites. Piracy hampers creativity, hinders the development of new software and local software industry and ultimately effects e-commerce. A piracy harms consumers and has negative impact on local and national economy. Consumers run the risk of viruses and having corrupted and defective programs. Judicial Approach In Dealing With Infringement Of Copyright And Software Piracy The Indian Copyright Act is unable to protect the unauthorized distribution and use of work over internet. Infringement over internet and piracy posing a threat to creative works worldwide and thus the growth of the internet, the e-commerce and the digital economy.Copyright owners exclusive right of distribution applies to e-mail attached or forwarded. In Play Boy Enter Inc v/s Frena Defendants subscribers downloaded unauthorized photographs of playboy enterprises to a bulletin board system. US Court held that the plaintiffs exclusive right of distribution was infringed by customers of defendant. This creates an obligation on the bulletin board operators to ensure that its system is not being used to display and download copyrighted materials by its customers. In Feist publication v/s Rural Telephone Service Co. Inc. It was held that there must be at least some minimal degree of creativity and what should be protected by copyright were the fruits of intellectual labour and not just sweat of the brow. In India databases are protected as literary works. In US if author is creative in selecting and arranging the data and does not merely display the data as facts will be registered. In UK a database which lacks creative input and requires only modest skill and labour acquire the right of unfair extraction for a period of 15 years only. While data created by full creativity copyright protection is given i.e. life of author plus 70 years. Compilation of data are themselves not protectable can be the subject of protection when there is the necessary selection coordination and arrangement and combined it with the abstraction, filtration and comparison test. Through internet the work of authors can be displayed in different jurisdictions and which is very difficult to detect. So the display rights can be easily violated over Internet. Software can be easily communicated to the public without authorisation by downloading the software from computer and unauthorized copies made may be retailed or rented out. In Michael v/s Internet - Group Inc. Court held that it is violation of copyright owners exclusive statutory right of display by making available videotape over the internet without authorization and posting unauthorized copies of electronic clipart on web pages If a web designer creates a website by combining some special features of various web sites. This may amount to unauthorized adaptation of the plaintiff software and violation of plaintiff's copyright. In digital media one can make about infinite number of copies without loss of quality. So the transferring data from one computer to another violate the reproduction rights of authors. Unauthorised reproduction or "scanning" a copy righted printed document into a digital file, and uploading, downloading copyrighted file to a bulletin board system is copyright infringement In MAl System Corp, v. Is Peak Computers Inc, it was held that the temporary copies made into a computer RAM are copies. But in year 1995 in Religious Technology v/a Netcom US District court held that temporary copying involved in browsing is the functional equivalent of reading and does not implicate the copy right laws. So as regards browsing one must come to the conclusion that it does not amount to violation and can deceived to be a fair dealing

Encryption Technology And Network Security Through the use of sophisticated cryptography, digital signature is created. The International Standards Organisation defines the concepts of a digital signature as data appended to or a cryptographic transformation of a data unit that allows a recipient of the data unit to prove the source and integrity of the data unit and protect against forgery. Encryption may provide a guarantee that the message has not been altered subsequent to its transmission but can not of itself provide conclusive evidence that it did originate from the alleged senders. One method of overcoming this difficulty is to invoke a third party. This notion of third party intervention has become an important element in governmental attempts to regulate the use of cryptography. One of the major areas identified for the use of cryptography is in the field of e-commerce. Complex issues of security, privacy, authentication and anonymity have been thrust to the forefront as confidential information increasingly traverses modem networks. Confidence, reliability and protection of this information against security threats are a crucial prerequisite for the functioning of e-commerce. A security threat is defined as a. crucial condition or event with the potential to cause economic hardship to data or network resources in the form of destruction, disclosure modification of data, software piracy, and denial of service, fraud, and abuse. As per the amendment made by IT Act 2000 in sec 65B of the Indian Evidence Act 1872, the electronic records can be produced as documentary evidence before the court of law. Access to computer databases and an analysis of "image copy" provide reliable evidence. Indian Government has taken a remarkable step ahead in right direction by enforcing the Information Technology Amendment Act 2008, on 27th October 2009, but which does not mention a single word about copyright. While the copy right is one of the most complicated areas of cyber law, .Jurisdiction, cybersquatting , trademark, patent, domain name, media convergence, taxation, payment issues are also not covered by the said Amendment Act. While these are essential for the growth of e-commerce. Moreover internet, e-commerce and copyright related cases are only being instituted in the western countries, to be more precise USA. But it seems that the Indian courts might see and influx of internet related cases in the near future. Therefore we should prepare our legal institutions for the production of information superhighway gateway. India has to go a long way to realise the true potential of information technology for conducting e-commerce. A lot depend upon the policy of the government to built necessary infrastructure, but it can surely be said that e-commerce is the way of a better future.