The Uniform Electronic Transactions Act

Have you ever wondered if an electronic transaction holds just as much weight as a paper one?

Well, it turns out it could.

The Uniform Electronic Transactions Act (UETA), which was passed in 1999, guarantees that electronic transactions are just as enforceable as their paper counterparts.

What this means for business-to-business e-commerce users is that if you engage in electronic purchases, you can be held liable for them. On the same score, you also have legal recourse when things go wrong.

But there's a hitch. Only California and Pennsylvania have adopted the act since its approval last July.

As more states sign on, the ramifications for e-commerce participants will be substantial, according to Jason Epstein, an attorney at Baker Donelson Bearman & Caldwell in Knoxville, Tenn. It will give electronic deals the weight they need so that they will be considered on a routine basis.

UETA states: "An electronic record of a transaction is the equivalent of a paper record, and that an electronic signature will be given the same legal effect, whatever that might be, as a manual signature."

UETA also says: "a contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation."

Just as important, the act states that any law that requires a physical record will be satisfied by an electronic record and that any signature requirement can be met by an electronic signature.

Finally, UETA guarantees that even automated transactions, as long as they were agreed to beforehand, have the same legal parameters as those involving human actions.

Users that have been hesitant to conduct business over the Internet will be comforted by this legislation as it becomes more widespread because it protects their company's transactions.

"When somebody buys something on the Internet, that person will be assured that the agreement is valid, even though the transaction is conducted automatically by a computer that solicits orders and payment information," according to a summary of the act from the National Conference of Commissioners on Uniform State Laws.

Hopefully, more states will adopt the act so that e-business will be as powerful as in-person transactions.

Would UETA make you feel more comfortable about doing a majority of your company's business over the Internet? Let me know at sgittlen@nww.com.

Sandra Gittlen is events editor for Network World's Seminars and Events Group. Previously, she was managing editor of Network World Fusion and senior reporter covering Internet research and standards for Network World magazine. She can be reached at sgittlen@nww.com.

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Uniform Electronic Transactions Act

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