e-commerce legal issues

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Assignment for Electronic Commerce

Introduction

The most common and traditional way to purchase goods for us is go to the high street stores where we pick up the goods what we like, pay for the prices at the check-out desk. However, the way has changed; 21 century is the world with E-commerce. People can no longer go to stores instead of buying all products at home over the internet. We can't ignore the benefits of e-commerce. For consumers, e-commerce is great as everyone likes the ease and convenience of shopping online. For businesses, e-commerce is also great managing suppliers and conducting business transactions over the Web saves time and money.

Without doubt, e-commerce provides huge convenience for not only consumers, but also the business. Notwithstanding online goods selling makes for consumers a speed, simplicity and variety of goods on offer, for the sellers a ready-made, instant audience that secures them the best price,1 it involves huge risks. Many buyers complained of sellers' performance for late shipments, no shipments, or shipments of the goods which are not the same quality or description as advertised, insecurity of payment by credit or direct card, etc2. As a result, in order to protect consumer's extra rights relating to buying goods online and regulate online business, some directives or regulations came into force in the UK.

EBay as a world's marketplace enables trade on a local, national and international basis. Everyday, a lot of buyers bidding and buying goods via eBay online platform, as well as millions of items traded through eBay. It developed an internet-based community where buyers and sellers are brought together to buy and sell. But eBay is not a real internet auction website, it performances as an online venue through which customers can do trade just as in offline trade transactions.

This essay intends to give a critical analysis for legal relationships among parties created on eBay.co.uk. I will also analyse consumers' protections from purchasing goods in stores and buying on eBay that whether they have the same rights by different means of purchasing goods. Moreover, some law legislations and regulations will be considered for supporting my views.

Part I

I Participators on eBay

EBay provides a cyberspace for buyers and seller who came together to buy and sell goods. On the other hand, eBay online service permit all users using it service on the basic premise that users must agree the terms and conditions presented on-screen. Therefore, firstly, the relationship between sellers and buyers are created through online sales contract. Secondly, eBay as online service provider provides services to eBay's users and regulate their acts.

) The legal relationship between eBay buyer and seller

Under English law, the formation of a contract requires four elements: offer, acceptance, consideration and an intention to create legal relations. The traditional offline rules apply to online contracts, that is to say, e-commerce is applied by the same principle as traditional paper-based transaction3, and only the way in which they apply may be different.

Under common law, an offer is a statement by one party of a willingness to enter into a contract with the other party on stated terms, and in turn, if the other party accepts it, the agreement will be legally binding. English contract law does not require an offer is made in a particular form. Thus, offers can be made by distant communications such as fax, e-mail and World Wide Web. However, it is necessary to observe the distinction between an offer and an invitation to treat. Invitations to treat are advertisements where merchants promote the sale of products. English law holds that shop displays goods and price listed are invitations to treat4. After the offer has been made, the offeree can choose to accept the offer to buy or refuse. If the acceptance of an offer is made, a contract is then entered into Acceptance is the unconditional agreement to the presented offer. The general rule is that an acceptance must be communicated to the offeror5, but there is no any rule as to which methods of acceptance. Thus, acceptances can generally be made via any communication methods unless the term of the offer has been explicitly specified. In the context of creating contracts online,

electronic mail has become a more faster and reliable communication method used as for the negotiation as to terms or other questions relating to the contract between parties. Moreover, an e-mail can also amount to a valid acceptance for any offer that required to be made in writing.

As traditional contract law is applied in online contracts, thus the display of goods with a price by sellers on eBay are merely an invitation to treat6 so that to attract consumers who are interested in these goods to make an offer to buy through bidding the goods. The offer therefore is made by the buyer, not goods supplier. After the offer has been made, the supplier can either accept or refuse the offer. Usually, the highest bidder will be accepted by the seller at the end of auction. The seller must communicate to the 'winner' that he is going to accept it and negotiate further delivery and payment method, it can not be a message merely notify the offeror that the offer has been received. Although the seller can communicate to the buyer via any communication method, in the situation on eBay, the acceptance of the offer is usually through an email from the seller via eBay as a confirm letter arranging delivery and payment method. As a result, both parties then enter into a binding contract once goods supplier send an e-mail as the acceptance to the buyer.
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Consideration in a sales contract is that "the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price"7.Therefore, consideration in the contract of sales goods on eBay is that an eBay seller deliveries the contracting goods to the buyer in exchange of goods price. Intention is another important element for creating a binding contract, but in the context of electronic commerce, which typically involves commercial contracts, intent will normally automatically exist.

Once the contract is validly formed, both parties are bound to perform their contractual obligations. As ...

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