The Voice of Business, Industry & the Professions Since 1942
North Carolina's largest business group proudly serves as the state chamber of commerce


Cyber Crimes

Maybe You Should Talk to an E-lawyer

It would be a stretch to suggest the past 18 months have in any way been good ones for dot-coms. Still, most agree that the Internet will continue to alter just about every aspect of the way we live, work and conduct business.

It is also reshaping many of our laws as they relate to commercial transactions.

“With the Internet, a business can reach so many more customers in so many different places — and that’s good,” says Matt Cummings, an associate with the Greensboro-based law firm of Adams Kleemeier. “But that does open them up to new risks.”

Many North Carolina companies that were used to selling only to North Carolinians suddenly find themselves with customers in all 50 states and abroad. Many fail to realize the legal complexities that come into play if something goes wrong — an intellectual property dispute, product liability claim or software licensing violation, for instance.

“This is really nothing new, but people get so excited about the ability of the Internet in commerce that they often overlook the legal implications,” Cummings explains.

For its part, public policy is trying to keep up. In 2000, Congress passed a bill giving electronic documents, executed with an electronic signature, the full binding force of a traditional ink-signed document. The Electronic Signatures in Global and National Commerce Act (a.k.a. “The e-Sign Act”) has sharply raised the speed limit on the Information Superhighway, says Cummings, who believes the law has had the added benefit of boosting the confidence of consumers doing business online.

The e-Sign Act created consistent legal standards governing the enforceability of contracts created by parties using electronic signatures. A good example: proposing and accepting the terms of an agreement transmitted via e-mail.

“The question we get most regularly is about electronic contracting,” Cummings says. The e-Sign Act, he explains, defines an electronic signature as an electronic sound, symbol or process created by an individual and executed by that person with an intent to sign a record. Anyone receiving a contract offer via e-mail may enter into it by e-mailing a reply accepting the offer stated in the originating e-mail.

“However, a party to an electronic agreement must clearly express his consent to be bound by the terms of contract,” cautions Cummings, “and litigation may still arise if one party does not definitively express his intent to be bound or if the terms of the agreement are not stated clearly.”

There is, of course, far more to it than that. So much so that Adams Kleemeier and other law firms have organized e-commerce and technology practice groups. The late 1990s witnessed a flood of interest in this arena of law, though the recent economic slowdown has quieted that tide somewhat.

“Most business lawyers are doing e-commerce (law) now,” says Cummings. But all may not be expert in it. There is nothing as yet in the way of a certification in the specialty, though that too may be in the works. “It’s uncertain where all this is going to go,” he says. In the meantime, Cummings offers this advice to those seeking legal counsel on technology and e-commerce issues: “Ask the lawyer what they’ve done previously in this area in order to get a feel for whether they’re qualified.”

The emergence of e-commerce law has required law schools to make adjustments to their curricula. “We know there is interest in this from students,” says Laura Gasaway, a professor who teaches cyberspace law at the University of North Carolina School of Law. In response to demand, the school recently added a faculty experienced in the area and is considering a new course to deal specifically with e-commerce. At the moment, most tech law issues are taught in the context of existing courses such as intellectual property and contracts.

“There is not really an e-commerce body of law,” says Jeffrey Hoffman, the CEO of Chapel Hill-based webslingerZ Inc. and a 1998 graduate of UNC Law. “The key is to understand how current law becomes applicable to web-based transactions.” More important than training law students on the nuances of e-commerce, Hoffman believes, is providing them instruction in entrepreneurial law. “Dealing with e-commerce would be a part of that as it’s germane to almost all companies these days. However, there are many other issues relevant to high-tech startups that are often excluded from law school curricula.”

Hoffman and others recently formed the Council for Entrepreneurial Law at UNC. The group aims to help position the School of Law as a resource for the entrepreneurial economy both in North Carolina and elsewhere. Its first event, an all-day program entitled “The Art of Advising a High Technology Company,” was held in mid-November. The gathering attracted some 75 attendees drawn from the ranks of both law students and practicing attorneys. -- Lawrence Bivins


Return to magazine index
 

 

Visit us at 225 Hillsborough Street, Suite 460, Raleigh, N.C.
Write to us at P.O. Box 2508, Raleigh, N.C. 27602
Call us at 919.836.1400 or fax us at 919.836.1425
e-mail:
info@nccbi.org

Co_pyright © 1998-2001, All Rights Reserved