Page 258 - E-Bussiness and E-Commerce Management Strategy, Implementation, and Practice

M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 225

Chapter 4 E-environment 225

information for users who cannot access frames or scripts; tables that are difficult to decipher
when linearized; or sites with poor color contrast.
A tool provided to assess the WWW standards is BOBBY (http://bobby.cast.org).
A case that highlights the need for web site accessibility is that brought by Bruce Maguire,
a blind Internet user who uses a refreshable Braille display, against the Sydney Organizing
Committee for the Olympic Games in 2000. Maguire successfully demonstrated deficiencies
in the site which prevented him using it adequately, which were not successfully remedied.
He was protected under the 1992 Australian Disability Discrimination Act and the defendant
was ordered to pay AU$20,000. This was the first case brought in the world, and it showed
organizations in all countries that they could be guilty of discrimination if they did not audit
their sites against accessibility guidelines since many countries such as the USA and the UK
have similar discrimination acts. Such acts are now being amended in many countries to
specifically refer to online discrimination.

2 Forming an electronic contract (contract law and distance-selling law)

We will look at two aspects of forming an electronic contract: the country of origin principle
and distance selling laws.
Country of origin principle
The contract formed between a buyer and a seller on a web site will be subject to the laws of a
particular country. In Europe, many such laws are specified at the regional (European Union)
level, but are interpreted differently in different countries. This raises the issue of the jurisdic-
tion in which law applies – is it that for the buyer, for example located in Germany, or the
seller (merchant), whose site is based in France? Although this has been unclear, in 2002
attempts were made by the EU to adopt the ‘country of origin principle’. This means that the
law for the contract will be that where the merchant is located. The Out-Law site produced by
lawyers Pinsent Mason gives more information on jurisdiction (www.out-law.com/page-479).
Distance-selling law
Sparrow (2000) advises different forms of disclaimers to protect the retailer. For example, if
a retailer made an error with the price or the product details were in error, then the retailer
is not bound to honour a contract, since it was only displaying the products as ‘an invitation
to treat’, not a fixed offer.
A well-known case was when an e-retailer offered televisions for £2.99 due to an error in
pricing a £299 product. Numerous purchases were made, but the e-retailer claimed that a

contract had not been established simply by accepting the online order, although the cus-
tomers did not see it that way! Unfortunately, no legal precedent was established in this case
since the case did not come to trial.
Disclaimers can also be used to limit liability if the web site service causes a problem for
the user, such as a financial loss resulting from an action based on erroneous content. Fur-
thermore, Sparrow suggests that terms and conditions should be developed to refer to issues
such as timing of delivery and damage or loss of goods.
The distance-selling directive also has a bearing on e-commerce contracts in the Euro-
pean Union. It was originally developed to protect people using mail-order (by post or
phone). The main requirements, which are consistent with what most reputable e-retailers
would do anyway, are that e-commerce sites must contain easily accessible content which
clearly states:

(i) The company’s identity including address;
(ii) The main features of the goods or services;
(iii) Prices information, including tax and, if appropriate, delivery costs;
(iv) The period for which the offer or price remains valid;
(v) Payment, delivery and fulfilment performance arrangements;