Case Analysis About E Commerce Law

I. Introduction: In this age of mobile phone shopping, online bookings, web based promotions and social networking, legitimate business transactions and permit applications can now be served via the internet. As early as June, 2000, the Philippine government through the Senate and the House of Representatives approved the E-Commerce Law in recognition of the vital role of information and communications technology (ICT) in nation-building. Known as the "Electronic Commerce Act of 2000" or House Bill No. 971, the act was passed because of the need to create an information-friendly environment which supports and ensures the availability, diversity and affordability of ICT products and services that provides for the recognition and use of electronic transaction and documents in the country. The bill likewise recognizes the responsibility of the private sector in contributing investments and services in telecommunications and information technology as well as the need to develop appropriate training programs and institutional policy changes.

The House Bill also took cognizance of the human resources involved in the use of ICT, the population capable of operating and utilizing electronic appliances and computers and its obligation to facilitate the transfer and promotion of adaptation of these technologies. But, in order to ensure network security, connectivity and neutrality of technology for the national benefit, information infrastructures comprised of telecommunication networks and information services shall be organized and deployed.

E-commerce is a system that includes not only those transactions that center on buying and selling of goods and services to directly generate revenue, but also those transactions that support revenue generation, such as generating demand for those goods and services, offering sales support and customer service, or facilitating communications between business partners. II. Reaction and Analysis of every provision: Declaration of Policy Section 1 : Short title It names the title of the act which is known as the "Electronic Commerce Act of 2000"

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Section 2:   Declaration of Policy. Reaction and Analysis: This provisions explains the content of the policy, which creates an environment friendly to promote the ICT products and services in an affordable way so that it can develop the training programs, policy of institutions, human resources, the labor force, the operations of electronic appliances especially the computer system. It promotes also the technology so that the network security and the connections of technology in the country will be safeguard or protected.

It gives benefits to the nation in terms of organizing the arrangement of the country’s information infrastructures and the understanding between communication networks and information services which connects to the global network in a legal act on its systems and facilities. In my opinion the declaration of the policy has an advantage in our country because it makes the business industry with the use of ICT be a good transactions in global markets that helps our assets and profits increase, that’s a help for our country’s budget.

Declaration of Principles for Electronic Commerce Promotion Section 3. Objective Reaction and Analysis: In this provision, It discusses the principles of the E commerce promotion which indicates the role of the government, every government official must be fair in giving shares and allowance in the lack of human resources and secure the common good, their settlements and goals should be done in the future and provide the necessities. The action of the private sector and in making the policy should be compromised.

As the role of the private sector, the E commerce development must be widened in market forces and they must pursue a fair competitive market. The International coordination and harmonization will make the government policies that affect the e commerce to be facilitated in a unified environment for good standards. In Neutral Tax Treatment, it will conduct the transactions in the use of e commerce that must take an unbiased or fair tax treatment in comparing transactions in non-electronic and taxation of e commerce and that must be guided in a least difficult manner.

In the protection of the users, they must have privacy or not be exposed with regards to industry led solutions, it shall be agreed with the law that business must be available to the consumers and the business users must not have a disclosure to the public and environment. E commerce awareness points to the government and the private sector, they will inform the society about the ability of the e commerce and the impact of it in economic foundations. The government will provide opportunities to SMES, well it will provide investments in information technologies and encourage capitals for them.

The government will also provide skills development for the employees generated with e commerce but they should still promote non or formal skills development programs. They will also provide online database for health services, public libraries, in this case I think it will be easier for us to find our needed information. Internet users will have an essential voice in the governance of the domain name system as well as the access to public domain information.

All of the principles is informative and useful in a way that our country will have an easier work and life because of technology and a good contribution to our economy. Chapter III – Objective and Sphere of Application Section 3: Objective Reaction and Analysis: In this provision, it discusses the main goal of the law, which pursues a domestic and international dealings and agreements with the storage of information through the use of electronic technology so that the electronic documents of activities will be authenticated.

The act also promotes the usage of electronic transactions in government and public to worldwide. Despite these aims and objectives, many are still skeptical on the methods provided under the law to ensure the integrity and security of these electronic transactions. Most of them question the admissibility and weight given to electronic evidence, its authenticity and integrity as well as the manner used to verify the same, and the impact of its legal recognition on the Philippine legal system. Section 4. Sphere of Application

In this section, this act must apply to any kind of electronic data message and document that is utilized in the occurrence of commercial and non commercial activities like what the section 4 stated, which are to include domestic and international transactions. In this section, it tells that the objective of the law must have a good practice and it should be used not only stating these aims but should become true. PART II ELECTRONIC COMMERCE IN GENERAL Chapter I – General Provisions Section 5: Definition of Terms

In these provision, it discusses the definitions of terms. The Addressee is a person who is intended by the originator to receive the electronic data message or electronic document, but does not include a person acting as an intermediary with respect to that electronic data message or electronic document. Commercial Activities must be given a wide interpretation so that it will cover the matters from the relationships of a commercial either contractual or not. It refers to the dealings with the rights of intellectual property.

It also discussed the definition of computer where in it’s the main source of e commerce activities that provide connecting transactions and databases. I also learned about the convergence where in it is the ability of different network platforms to carry any kind of service; and the coming together of consumer devices. The Electronic data message explained that it is also an interchange with electronic document where in there are information stored by means of electronic. The ICT, it a system that is used for processing electronic documents as well as recording the data.

Electronic signature refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document. Electronic key refers to a secret code, which secures and defends sensitive information that crosses over public channels into a form decipherable only by itself or with a matching electronic key.

This term shall include, but not be limited to, keys produced by single key cryptosystems, public key cryptosystems or any other similar method or process, which may hereafter, be developed. Intermediary refers to a person who in behalf of another person and with respect to a particular electronic data message or electronic document sends, receives and/or stores or provides other services in respect of that electronic data message or electronic document. Non-Commercial Activities are those not falling under commercial activities.

Originator refers to a person by whom, or on whose behalf, the electronic data message or electronic document purports to have been created, generated and/or sent. The term does not include a person acting as an intermediary with respect to that electronic data message or electronic document. Person means any natural or juridical person including, but not limited to, an individual, corporation, partnership, joint venture, unincorporated association, trust or other juridical entity, or any governmental authority.

Service provider refers to a provider of online services or network access. With help of definitions and terms, it is easier to understand what is e commerce all about and what are the relations of these terms to this law, because the law always pertains to electronic people, activities so by this explanation, we will be clarified with the content of the law. Chapter II – Legal Recognition of Electronic Data Messages Legal Recognition of Electronic Data Messages and Electronic Documents Section 6: Legal Recognition of Data Messages Reaction and Analysis:

In this provision, it says that every information in the form of electronic data message or document must be approved always in a legal purpose. It says that the person should provide a written information to another person in conversion to electronic data message or document. The non electronic form of data must meet the requirements of the provision of the information and must be the same as the form of electronic data message or document. The operation of the requirement of the law has no limit for the information to be displayed with time or location until a functional equivalent will be implemented.

The functional equivalent, says that electronic documents can never be the same as paper type, they still have difference. But electronic documents can do the purpose of paper type of documents like for example as a record or database of information from the paper. So I think the electronic data message can hold the paper based document by the person who write, and its still different from each other because the original form of the information is in written form while the electronic data message are in computerized type.

Sec 7 Legal Recognition of Electronic Documents Reaction and Analysis: In this provision, it discusses the electronic signatures that are now recognized to be equivalent to the signature of a person on a paper based document, it explains the procedures provided on it like a method used to indicate the party to enter to the electronic document that is needed for his approval through the electronic signature. It is appropriate for its purpose for the electronic document where in it was generated with any agreement.

With this situation, It is needed to the said party so that it will go to the transaction with electronic signature while the other party will have an access to verify it and for them to decide to go again with the flow of transaction valid by the same process. Well this serves a good transactions of contracts with use of electronic signatures from person to another person. Sec. 8. Legal Recognition of Electronic Signatures

This provision examined some important legal issues associated with electronic signatures. I think the government should come out with some legislation. There should be some kind of legislation that should be out in our country that says that electronic signatures are an acceptable form and can legally replace paper-based forms of signature. Then only we businesses may be thinking of using it. Sec 9 Presumption Relating to Electronic Signatures

In this provision, it explains the electronic signature correlations, it means that this was connected by the person with the intention of signing in the approval of the electronic document but the person depending on the electronic documents finds or notices a defects wich the signature has no dependency will not be affixed. This means that when Person A’s signature is attached to a document, one may presume that it is A’s signature and that he was the one who signed it with the intention of signing or approving the same.

I think this is right so as they can easily detect a person’s signature electronically. Section 10 Original Documents It explains that the law requires information to be maintained in its original form, the integrity of the electronic document from the time it was created in its final form is shown by aliunde which means it is an evidence clarifying a document but not deriving from the document itself, otherwise the information is has the ability to be displayed to the person whom it is to be presented. This means that it applies whether the requirement is in he form of an obligation or the law simply provides consequences for the information not being presented or maintained in its original form. This provision of law will be a great help to those who go to court presenting electronic evidence. While the old prototype could only conceive of original document as being generally single, this covers the way for the existence of many originals as long as the provision’s criteria of integrity and reliability are met. Section 11: Authentication of Electronic Data Messages and Electronic Documents

This section explains that the electronic signatures must be validated by proof than a letter associated with an electronic data message or document in a security procedure. And it can detect errors or alteration of communication, The supreme court may adopt such authentication procedures, including the use of electronic notarization systems as needs, as well as the certificate of authentication on printed or hard copies of the electronic documents or electronic data messages by electronic notaries, service providers and other certification authorities. It provides the rules on evidence.

Prone to the different characters of electronic data messages vis-a-vis paper or other objects, authentication procedures will have to be different too. This law requires for electronic data messages to be authenticated by validating a claimed identity of a user, device, or information system. Electronic signatures are to be authenticated by proof that a symbol or character representing the person named t attached to or that an appropriate technology or security was used with the intention of authenticating or approving the electronic document. Section 12.

Admissibility and Evidential Weight of Electronic Data Message or electronic document. In this section, it serves as a guide to a data message is allowed in evidence and to how much weight is to be given them . It says that there’s no rule shall render the data message that is not allowed on the sole ground that it is in electronic form or on the ground that it is not in the standard written form. Evidential weight is to be given such electronic document after assessing the reliability of the manner in which the originator was identified, and other relevant factors have been given due regard.

Section 13, Retention of Electronic Data Message or Electronic Document. In this provision, it explains that electronic data message or original form must remain usable for reference and it will maintain the format when it was sent or received, It makes us identify the originator, the addressee which was explained in section 6, it also indicates the time and date of the electronic data message. The person required to maintain the forms can do it in a different way by using the services of a third party. Like for example, the BIR, demands the retention of receipts for at least three years, so that they can audit it.

The effect is that this can relieve business corporations from having to keep the required documents in paper form. It would be a good way to access the receipts and easier to find. Section 14. Proof by Affidavit, This provision also matters in section 12 and 9, it will take for granted to establish by an affidavit given to the deponent. So that it would inform the deponent about the rights of parties. This is useful as the requirements may prove to be more demanding and set in one’s way. Section 15. Cross – Examination.

In this section it discusses that in any statement contained in affidavits and shown in courts, are subject to the right of the person against whom the affidavit is executed so that it can test the accuracy and truth of the affidavit by cross-examination, which means the interrogation of a witness called by one's opponent. As I understand,the process of cross-examination is presumed to be necessary because most witnesses come forward to support one side or the other. In the case of the defense, a witness might omit certain information which the prosecution might find interesting or relevant.

A prosecution witness might, likewise, omit information. Cross-examination ensures that the trial is fair, and that all information is truly out on the table. CHAPTER III. COMMUNICATION OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS Section 16. Formation of Validity of Electronic Contracts. In this provision it says that a contract is a meeting of the minds and generally could take whatever shape or form, many of them are still afraid of that contracts entered into electronically may encounter some problems.

Many transactions and other forms of trade are now conducted electronically. For example, most people will at least be familiar with, if not frequent users of, ATMs situated outside or inside banks. When a bank’s customer withdraws money or uses an ATM for other purposes, an electronic transaction takes place. More and more business is now done electronically, often with the parties never physically meeting each other. Online shops, for example, allow potential customers to browse, select and purchase goods without ever asking a salesperson for advice or assistance.

Negotiations, giving quotes or submitting tenders for work may all be done electronically and indeed are. A great deal of information is now passed electronically within organizations and from one organization to another. This all raises a number of legal questions, specifically with regard to electronic contracts. Some of the most important issues include whether an electronic contract is valid, that is, whether it must comply with certain formalities, whether electronic signatures are admissible as evidence of intent and agreement, and what law applies to an electronic contract.

Section 17. Recognition by Parties of Electronic Data Message or Electronic document. In this provision, it says that the originator and the addressee of an electronic data message or electronic document, a declaration of will or other statement must not be denied legally, validity or enforceability solely on the ground that it is in the form of an electronic data message or electronic document. Section 18. Attribution of Electronic Data Message.

This section says that of the originator if the originator him/herself sent it and it was sent by an information system programmed by or on behalf of the originator to operate automatically. The addressee is used to pertain an electronic data message or electronic document as well as the originator. The addressee must apply a procedure which the originator approved and as the addressee receives the electronic message which results from the action of a person, it will enable to access a method to identify electronic message or document on his own way.

An electronic message is deemed to be sent by the originator of the message if it is sent by a person who has the authority to act on behalf of the originator in respect of that message or if the message is sent by an information processing system programmed by, or on behalf of the originator to operate automatically. The notion that one has to physically put pen to paper to sign a contract is now a thing of the past.

A person who receives an electronic message is entitled to regard the message as being that of the originator except in instances where he has received notice from the originator that the message was not sent by him or the addressee knew or should have known that the message was not sent by the originator had he exercised reasonable care. Originator doesn’t include Intermediary. For example, Person A uses his yahoo account to send an email message to person B which is the addressee. Here, Person A is the originator & Yahoo is the intermediary. Person A is on vacation.

During vacation he has turned his vacation responder on with the following message:“Thank you for your email. I am on vacation, will reply your mail as soon I get back”. Here, though person A has programmed an information system to operate automatically on his behalf. Still Person A is the “originator” in this case. Section 19. Error on Electronic Data Message or Electronic Document. In this provision, it explains that the transmission of electronic data message between the addressee and the originator that resulted in error, it will enter to the designated information system or which is not designated by the addressee for the purposes.

Section 20. Agreement on Acknowledgement of Receipt of Electronic Data Message or Electronic Document. In this provision the originator has not agreed with the addressee that the acknowledgment of receipt of electronic record be given in a particular form or by a particular method, in any communication by the addressee will be automated or otherwise any conduct of the addressee, sufficient to indicate to the originator that the electronic record has been received. The originator has not agreed with the addressee that the acknowledgement be iven in particular method, an acknowledgement may be given by or through any communication by the addressee, automated or otherwise, or any conduct of the addressee, sufficient to indicate to the originator that the electronic data message or electronic document has been received. The originator has stated that the effect or significance of the electronic data message e or electronic document is conditional on receipt of the acknowledgement thereof, the electronic data message or electronic document is treated as though it has never been sent, until the acknowledgement is received.

What exactly did the originator of the message intend to send? Under the Act, there is a presumption that the electronic message is what the originator intended to send, and the addressee can act on that presumption unless the originator can show that the addressee knew or should have known that the electronic message received was an error. Therefore parties to a commercial transaction have to take precautions to ensure that any messages to be sent contains accurate information and are indeed intended for the recipient.

For example, Person A sends an email to Person B asking her that he would like to purchase a car and would like to know the prices of the cars available for sale. Person B in return sends person A catalogue of prices of the cars available for sale. Now this action of Person B is sufficient to indicate to person A (the originator) that his email (i. e. the electronic record) has been received by the addressee. Section 21.

Time of Dispatch of Electronic Data Messages or Electronic Documents. In this provision, with regards to the issue of time of dispatch, an electronic message is deemed by the Act to be sent when it enters an information processing system outside the control of the originator. Therefore it would appear that the time of dispatch will be when a person clicks the ‘Send’ button when e-mailing or the ‘Buy/Purchase’ button on an online store.

An electronic message is deemed to be received when the message enters the designated information system (where there is a designated system), for instance, when a message enters the inbox folder of an e-mail account, or where there is no designated system, when the addressee comes to know about the message. Where the parties agree or the originator requests that receipt of the electronic message is acknowledged, that message will be treated as though it has never been sent until the acknowledgment is received.

If the method of acknowledgment has not been agreed by the parties, any acknowledgment (automated or otherwise) or any conduct of the addressee which is enough to communicate receipt, will suffice as acknowledgment. Example of this: Person A composes a message for person B. At exactly 12. 00 noon she presses the “Send” button. When she does that the message leaves her computer and begins its journey across the Internet. It is now no longer in Person A’s control. The time of dispatch of this message will be 12. 00 noon. Section 22. Time of Receipt of Electronic Data Messages or Electronic Documents.

This provision explains that the time of receipt of an electronic communication is the time when it becomes capable of being retrieved by the addressee at an electronic address designated by the addressee. The time of receipt of an electronic communication at another electronic address of the addressee is the time when it becomes capable of being retrieved by the addressee at that address and the addressee becomes aware that the electronic communication has been sent to that address. An electronic communication is presumed to be capable of being retrieved by the addressee when it reaches the addressee’s electronic address.

Section 23. Place of Dispatch and Receipt of Electronic Data Messages or Electronic Documents. - How does one determine the location of dispatch and receipt of electronic messages? The Act deems an electronic message to be sent from the originator’s place of business and received at the addressee’s place of business. If there is more than one place of business, it will be considered sent from the place of business that has the closest relationship with the transaction or in the absence of that, from the principal place of business.

In circumstances where the originator or addressee has no place of business, it will be deemed sent or received, as the case may be, at the originator’s or addressee’s ordinary place of residence. Example of this is: person A has entered into contract with a US based company. Company has its server in Brazil. Even if the company has its mail server located physically in Brazil, the place of receipt of the order would be the company’s office in USA. Section 24. Choice of Security Methods. This provisions explains the choice of type or level of security for their own purposes is recognized in this section .

But still, this is prior to rules and guidelines which government can declare in terms of e- commerce transaction security. In my opinion, security is perhaps one of the greatest concerns of the millions of users that routinely exchange data over the Web or store information in computers which may be accessed by unauthorized parties. The government should protect the confidentiality and integrity of data being transferred or stored, they need to develop a new standard which defines authenticated encryption mechanisms that provide an optimum level of security.

PART III ELECTRONIC COMMERCE IN CARRIAGE OF GOODS Section 25. Actions Related to Contracts of Carriage of Goods. This provision explains that the law is designed to apply to actions on contracts related to carriage of goods. What is figured is that airway bills, bills of lading, receipts, sales, transfers of ownership, and other documents or papers related to carriage of goods by land, sea, or air may now be done electronically. For example, buying online gadgets through the net, it is by shipping procedures.

Section 26. Transport Documents. In this provision, It follows therefore that electronic documents facilitated and transacted though online basis are as important and valid as that of actual use of paper documents. This is according to SEC. 26 under Transport Documents where the law requires that any action referred to contract of carriage of goods be carried out in writing or by using a paper document, that requirement is met if the action is carried out by using one or more data messages or electronic documents.

In almost all electronic transactions, online orders are subject to a verification procedure conducted by the store for their protection as well as customers from credit card fraud or identity theft. This is a normal procedure to verify that the card owner or that order and that ship-to information are legitimate. This process rarely delays an order, and generally requires either a simple call-back which can be done through phone calls or by fax messages. The B store for example stresses the importance of knowing what “bill-to nformation” on the checkout process means. The bill-to address is the address to which your bank mails your monthly credit card statement. The bill-to address you give the store must agree with the address that the card issuing bank has on file. Then, be sure to provide the correct information, even if the items are to be shipped to a different location. PART IV ELECTRONIC TRANSACTIONS IN GOVERNMENT Section 27. Government Use of Electronic Data Messages, Electronic Documents and Electronic Signature.

In this provision, it says that the government must accept retentions and creations of electronic data messages or document like issues in permits, licenses and its approval form and issure receipts in the form of electronic. As well as the government business transactions and it is authorized to adopt rules and regulations in the form of electronic documents. In a short explanation all documents that they will create should be in the form of electronic documents or data messages and authorized by electronic signatures as well. Section 28.

RPWEB Promote the Use of Electronic Documents or Electronic Data Messages in Government and to the General Public. In this provision, it explains that RPWEB’s role in the use of electronic documents or data messages. They must be the initial platform of the GII which stands for government information infrastracture to control the electronic online transmission and conveyance of government services to improve better technologies or kinds and electronic online wide area networks utilizing, but not limited to, fiber optic, satellite, wireless and other broadband telecommunications.

To sum up, RB web’s major task is to . Interconnect all government offices and units, including schools, colleges and universities, government corporations, as well as those at the local level, by authorizing the use of savings for Internet access, through any Internet Service Provider (ISP) in their area, to facilitate faster communication and data interchange in government. Interconnect all ISPs through Internet exchanges for greater connectivity among users in the country. Speed up implementation of the telephone roll-out programs, articularly in unserved areas in the country. So that our country will hava a better technology. Section 29. Authority of the Department of Trade and Industry and Participating Entities. In this provision, it enables the DTI to promote and develop electronic commerce as well as to promulgate rules and regulations, provide quality standards or issue certifications in the pursuance of this Act’s intentions. I was very pleased to see this attempt by the DTI to develop electronic commerce in our country.

I believe that this act will be implemented for the economic future of the country; electronic commerce and the development of new network-based public services is clearly set to become a major contributor to country’s economic growth over the next decade. The DTI has a very important role to play to ensure that the potential benefits for the public, for SMEs and for government can be realised promptly and in a safe manner. PART V FINAL PROVISIONS Section 30. Extent of Liability of a Service Provider.

This provision explains the liablilities of the service provider, It exempts ISPs from liability if they can prove that they had no knowledge of the occurrence of the alleged act, and that they had taken sufficient steps to prevent a violation. However, the existing provision does not clearly prescribe liability limits of service providers. For example, if a person makes a representation to a service provider claiming copyright on the material available on the network, will the service provider be liable if he fails to take steps within a reasonable time to remove the infringing material from the network?

If the service provider fails to prevent infringement of copyright in the above circumstances, is the plea of not having knowledge of infringement still available to him? If the service provider removes the material from the network in pursuance to the representation made by a person which later on proves false, will the service provider be liable to the person whose material has been removed? The liability of service providers for copyright infringement must be made more explicit.

The act must include sections that address the financial aspect of the transaction, and the relationship between an ISP and a third party, because this is vital to determining the identity of the violator. So that if any person with knowledge of the infringing activity, induces, causes, or materially contributes to the infringing conduct of another, the person can be made liable. In order to be exempt from liability, the act requires the service provider to exercise due diligence to prevent the commission of copyright infringement.

The Act does not provide the meaning of the term due diligence. If due diligence means policing each and every aspect of the Internet, it can lead to loss of privacy and can ultimately have a disastrous effect. There is a need for a consensus on the meaning of the term due diligence because the primary function of ISPs is to build the Internet, not to play the role of a policeman. If the behavior of an ISP is reasonable, then that ISP should not be held liable for each and every activity on the Internet as has been held by the court.

Section 31. Lawful Access. In this provision, it explains that that access to an electronic file, signature or document shall be limited only to those that are authorized to possess and use it. Electronic keys used for identity and integrity may only be made available to another upon consent of the individual in lawful possession of the key. Section 32. Obligation of Confidentiality. This provision explains that those who obtain access to an electronic key, signature or document not to convey or share the same with another.

These two sections are important in that it recognizes that these files are property of an individual and can be possessed only by another upon the consent of its owner. It further recognizes the privacy and personal nature of the key by obliging those who gets to possess it not to share it with others. In my own opinion, the person must receive the information in confidence. That means that he or she must be asked to treat the information as confidential or it must be obvious to him or her that the information is given in confidence.

The best way to do that is to ask the person to sign a confidentiality agreement. That is not in itself enough. Precautions must be taken (and seen to be taken) to keep the information secret such as logging documents and disclosures, keeping materials under lock and key and extracting confidentiality agreements. Section 33. Penalties. - The following Acts, shall be penalized by fine and/or imprisonment, as follows: In this provision, issues in security and penalties are addressed in it.

The violations are the ff: hacking, is any access in order to corrupt, alter, steal, or destroy using a computer or other similar information and communication devices, without the knowledge and consent of the owner of the computer or information and communications system. For example, an adolescent who would never consider picking someone's pocket or physically damaging someone else's property or home, might be quite willing to steal people's credit card numbers or destroy poorly protected business or government files, since files and credit card numbers are not tangible entities, and the damage is done anonymously.

If the individual commits this violation he will have a fine of One Hundred Thousand pesos and imprisonment of 6 months to 3 years. Another violation is piracy, s the unauthorized duplication of an original recording for commercial gain without the consent of the rights owner. They will be punished by a minimum fine of One Hundred Thousand pesos (P 100,000. 00) and a maximum commensurate to the damage incurred and a mandatory imprisonment of six months to three years. In my opinion. Penalties like imprisonment are good example of punishing an individual who possess violations and crimes.

Section 34. Implementing Rules and Regulations. In this provision, it explains that the DTI, Department of Budget and Management and the Bangko Sentral ng Pilipinas are empowered to enforced the provisions of this Act. Among others, the DTI is empowered to promulgate rules and regulations, as well as provide quality standards or issue certifications, as the case may be, and perform such other functions as may be necessary for the implementation of this Act in the area of electronic commerce.

Failure to Issue rules and regulations shall not in any manner affect the executory nature of the provisions of this Act. In my opinion, it is necessary to develop rules and regulations especially in e commerce. We need rules for the settlement of disputes. They also need rules for the organization of their governments. Law is the set of rules that the government enforces through its police, its courts, and its other agencies. It is important to implement rules and regulations so that people can understand what e commerce is and what are the obligations toward this act.

Section 35. Oversight Committee. In this provision, it explains that there shall be Congressional Oversight Committee composed of the Committees and Trade and Industry/Commerce, Science and Technology, Finance and Appropriations of both the Senate and House of Representatives which shall meet at least every quarter of the first two years and every semester for the third year after the approval of this Act to oversee its implementation.

The DTI, DBM, Bangko Sentral ng Pilipinas, and other government agencies as may be determined by the Congressional Committee shall provide a quarterly performance report of their actions taking in the implementation of this Act for the first three (3) years. Utilizing an oversight committee has several advantages. In my opininion, It is generally much more effective with forming and implementing a new rules and regulations. Also, since the oversight committee is a separate entity, access to classified information such as electronic data messages and documents can be controlled.

Since experts are involved, uninformed bias is kept to a minimum. The oversight committee can also operate as a mediating body between the active organization and the public. In this role, the committee can help the public understand what e commerce rules and regulations by publishing reports that communicate the facts in ways the public can understand. The existence of an oversight committee can have an impact on the quality and fairness of fact-finding even before the committee gains access to the relevant information.

Government entities must ensure the standard of their work is acceptable, especially because in the long run it will be more costly and time-consuming if they are forced to go back and correct mistakes when an oversight committee detects errors on the implementation of the act. Section 36. Appropriations. In this provision, It explains that the funds needed to provide the sections 27 and 28 will be charged on the savings of the General Appropriations Act of 2000 in the first year of the effectively of the act. And all the funds for the continuous implementation will be included in the General Appropriations Act.

This is important to develop the electronic transactions between the government and to the public and like the section 27 said in order to transact the government business and/or perform governmental functions using electronic data messages or electronic documents, and for the purpose, are authorized to adopt and promulgate, after appropriate public hearings and with due publication in newspapers of general circulation, the appropriate rules, regulations and I think there will be needed funds to implement this. Section 37.

Statutory Interpretation. In this provision, it explains that Philippine law on e-Commerce was patterned after the “UNCITRAL Model Law on Electronic Commerce” adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1996 the model law is intended to promote the harmonization and unification of international trade law and remove unnecessary obstacles to international trade caused by inadequacies and divergences in the law affecting trade as a result of the information technology revolution.

The interpretation of this Act shall give due regard to its international origin and the need to promote uniformity in its application and the observance of good faith in international trade relations. The generally accepted principles of international law and convention and electronic commerce shall likewise be considered. Section 38. Variation of Agreement. In this provision, it explains that the variation of agreement is intended to apply not only in the context of relationships between originators and addressees of data messages but also in the context of relationships involving intermediaries.

Thus, the provisions of it could be varied either by bilateral or multilateral agreements between the parties, or by system rules agreed to by the parties. However, the text expressly limits party autonomy to rights and obligations arising as between parties so as not to suggest any implication as to the rights and obligations of third parties. Section 39. Reciprocity. This section states that if the other party to a transaction comes from a country that does not grant the Filipino similar rights contained herein, he will not be allowed also to enjoy the benefits of this law's provisions.

Section 40. Separability Clause. In this provision it states that any separable provision of this Act be declared unconstitutional, the remaining provisions shall continue to be in force. To understand generally a separability clause is a clause often included in a legal document (as a contract) stating that invalidation of some sections or clauses in the document will not affect the validity of the remainder. Section 41. Repealing Clause. In this provision, all rules and regulations which are inconsistent with the provisions of this Act will be cancelled legally.

Section 42. Effectivity. In this provison, it declares the effectivity of the act wher e in it shall be effective after its publication in the Official Gazette. Conclusions and recommendations: There is high need for such laws to be enforced in order to make sure the balance is maintained between selling and buying along with the right laws. So far the laws such as the limitation of the liability, indemnification, attorney fees, choice of law are the most used and vital ones to make sure that the deals and trading happen legally and governed by laws.

The electronic buying and selling are the key features of this modern world and internet applications. The way of living is simplified to the core by the extensive and effective applications of the internet and the Ecommerce laws that govern these electronic trading. The modern world is reaping the multipurpose benefits of the internet and its worldwide applications to the maximum. The laws are the heart of any modern day trading or dealing that takes place because they set the way of business and the regulations of the business.

When you make any electronic transaction, then you will have to go through the mandatory laws so that they occur under the legal patterns. The limitation of the liability and the choice of the law are vital laws that the ecommerce industry has to go through. As the days pass by, further more laws are going to be implemented in order to make sure the industry and the transactions are under control. Case Analysis about the E Commerce Law Kyle M. Estanislao SOCULITA 301

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