There is nothing easy about the law. It is complex under the best of circumstances, but it is
necessary to protect the rights and privileges of people and businesses. Companies that choose
to engage in e-commerce must be aware of the legal environment because “a lack of
awareness…can lead to missteps as well as missed opportunities….”  A summary of important
legal issues for e-commerce is in Table 4.2 “Important Legal Issues for E-Commerce”. However,
the focus here is on three areas: electronic transactions, intellectual property, and jurisdiction.
Jurisdiction The ability to sue in other states or countries.
Electronic transactions All transactions that take place online.
Liability The use of multiple networks and trading partners makes documenting responsibility difficult. How can liability for errors, malfunctions, or fraudulent use of data be determined?
Identity fraud The Identity, Theft, and Assumption Deterrence Act of 1998 makes identity fraud a federal felony carrying a three- to twenty-five-year prison sentence.
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