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07 - Chapter 7: The Environment of Electronic Commerce:...

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Chapter 7: The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues Electronic Commerce, Seventh Annual Edition
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Electronic Commerce, Seventh Annual Edition 2 Objectives In this chapter, you will learn about: Laws that govern electronic commerce activities Laws that govern the use of intellectual property by online businesses Online crime, terrorism, and warfare Ethics issues that arise for companies conducting electronic commerce
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Electronic Commerce, Seventh Annual Edition 3 Objectives (continued) Conflicts between companies’ desire to collect and use data about their customers and the privacy rights of those customers Taxes that are levied on electronic commerce activities
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Electronic Commerce, Seventh Annual Edition 4 The Legal Environment of Electronic Commerce Online businesses: Must comply with the same laws and regulations that govern the operations of all businesses Face complicating factors The Web extends a company’s reach beyond traditional boundaries The Web increases the speed and efficiency of business communications The Web creates a network of customers
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Electronic Commerce, Seventh Annual Edition 5 Borders and Jurisdiction Territorial borders in the physical world mark the range of culture and reach of applicable laws very clearly European Union (EU) Allows free movement within the EU for citizens of member countries Adopted a common currency
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Electronic Commerce, Seventh Annual Edition 6
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Electronic Commerce, Seventh Annual Edition 7 Borders and Jurisdiction (continued) Power A form of control over physical space and the people and objects that reside in that space A defining characteristic of statehood Jurisdiction Ability of a government to exert control over a person or corporation Effects Impact of a person’s behavior
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Electronic Commerce, Seventh Annual Edition 8 Borders and Jurisdiction (continued) Legitimacy Idea that those subject to laws should have some role in formulating them Notice The expression of a change in rules Constructive notice Individuals become subject to new laws and cultural norms when they cross an international border
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Electronic Commerce, Seventh Annual Edition 9 Jurisdiction on the Internet Power, effects, legitimacy, and notice do not translate well to the virtual world of electronic commerce Governments that want to enforce laws must establish jurisdiction over business conduct Contract Promise or set of promises between two or more legal entities
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Electronic Commerce, Seventh Annual Edition 10 Jurisdiction on the Internet (continued) Tort Intentional or negligent action taken by a legal entity that causes harm to another legal entity A court has sufficient jurisdiction in a matter if it has both subject matter jurisdiction and personal jurisdiction
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Electronic Commerce, Seventh Annual Edition 11 Subject-Matter Jurisdiction Subject-matter jurisdiction is a court’s authority
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07 - Chapter 7: The Environment of Electronic Commerce:...

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