(234) On June 30, 2000, the U.S. Congress enacted the Electronic Signatures in Global and National Commerce Act (ESIGN) to facilitate the use of electronic records and signatures in interstate and foreign commerce byensuring the validity and legal effect of contracts entered into electronically. An important provision of the Act requires that:
A. The e-commerce businesses do not have to determine whether the consumer has the ability to receive an electronic notice before transmitting the legally required notices to the consumer.
B. Businesses have the ability to use product price to persuade consumers to accept electronic records instead of paper.
C. Specific technologies be used to ensure technical compatibility.
D. Businesses obtain electronic consent or confirmation from consumers to receive information electronically that a law normally requires to be in writing.
Explanation:
The legislation is intent on preserving the consumers rights under consumer protection laws and went to extraordinary measures to meet this goal. Thus, a business must receive confirmation from the consumer in electronic format that the consumer consents to receiving information electronically that used to be in written form. This provision ensures that the consumer has access to the Internet and is familiar with the basics of electronic communications. Answer b is, therefore, incorrect. Answer c is also incorrect since the legislation reduces the ability of businesses to use product price unfairly to persuade consumers to accept electronic records. Answer d is incorrect since the legislation is specifically technology-neutral to permit the use of the best technology for the
application.
- Idham Azhari
