The prevailing decade has been significantly marked as a decade of high technology and advancements. The most technological nations across the world have drifted from conventional and traditional brick and mortars business to the online rather the dot com era of advancements.
Either of the two generations of the dot com business advancement, accessibility and understandability remained the core issues. The very ideology that forms the mainstream of the e-commerce business is the exchange of goods and services for an equivalent amount of cash payment. The e-commerce business completes its phase of existence by means of the common modes that include
Business to business transaction
Business to consumer transactions
Consumer to consumer transaction
Business to government transaction
Government to business transaction
Consumer to government transaction
Government to consumer transaction
Because the basic condition to satisfy the online transaction involves the exchange of goods and services against the financial deposit or money.
When the point and involvement of money is elevated in an online transaction the importance and need of security automatically amplifies. It has been for this reason that the second generation of ecommerce rather the dot com boom is marked with a significant intervention of the state laws to advocate the degree of security that is necessary to execute an online sale. The Uniform Commercial codes is a similar initiative by the U.S.A. government to ensure that the sales and other business activities are being operated at a full capacity and the paths of transaction are scrutinized by the state by means of the laws the government has proposed (Bouchoux, 2001, p. 55).
The following paper shall emphasize on the uniform Commercial Codes Article 2, that deals in the sales of goods and is based on the contract law of the state. The pros and cons as well as the importance of the laws have been elevated.
Uniform commercial codes
The uniform commercial codes are defined as the customary set that are advocated as the business laws and are responsible for regulating the financial contracts. Majority states of the United States exercise these codes as they are the uniform commercial codes and are formulated under the rigid supervision of the state and the jurisprudence. The UCC gives a complete set of codes that can be utilized in all sorts of business transactions as it contains nine discrete articles to deal all situations of the business activities. And as a matter of fact each article of the UCC has a separate condition to cater based on banking and various other financial institutions. The UCC hereby enables the secured lending and borrowing of money (Koslow & Huerta, 2000, p. 41).
Need of uniform commercial codes
The uniform commercial codes serve as a concrete foundation of the business activities of all types and kinds. The fact needs to be acknowledged that without uniform and standard codes prescribed by the state it would be difficult for the buyers and sellers to exchange their interests. Particularly in the prevailing situations where almost every business is transforming to dot com that is click and mortar avenue to enhance sales and exploit all the possible thresholds of profitability. The advancement in the technology has a two way impact on the business activities that is one hand they are a source of comfort for the buyers and on the other hand there security is a major concern. The UCC is playing an important role is securing the business transactions among the buyers and sellers. It has been for this reason that the businesses that operate as ecommerce business as well as the traditional businesses it is important to ensure that the buying and selling of the goods is abided by the norms and are secure (Steiner & Guth, 2005).
Uniform commercial code article 2
The Uniform Commercial Code Article 2 deals in clauses that pertain to sales of all types of goods and services. As per the modern ecommerce business and the second generation of the dot com boom it is really important to ensure that the business operating online should focus primarily on the security of the transactions that are prompted by online sales and purchases (Alboukrek, 2003).
The applications of uniform commercial code article 2
The application and the major entities involved in the Uniform Commercial Code Article 2 dealing in sales are described below and the mechanism of its operation is also discussed. The agents that have a solid position in the online sales and purchase are as follows it has to be kept in mind that these entities are legally recognized and are coved by the UCC article 2.
The major agents' online sales transaction
In order to understand the need of government intervention in the ecommerce activities of the private online entrepreneurs the basic agents of the online transaction are needed to be discussed
The customer: the customer is an individual who purchases online and as per the statistics about 85% people across the globe use credit cards to make online purchases, whereas 95%people of USA uses credit cards for making online sales. The UCC, is hereby plays the role of a trust seal for the customers entering the credit card information on a much dangerous and prone to hackers web. As per the clauses of the contract act being followed in the U.S.A. The goods must be sold and purchased with free consent and that any form of pressure on the customer give the customer a legal right to cancel the contact. Hereby the UCC ensures to codify the information entered by the customer and transfer this encrypted code to the merchant server.
The merchant: the UCC ensures that the merchant has a valid merchant account based on this credit history and related personal loans and market standing and goodwill. Small and mediocre businesses as a matter of fact matter unable to get there independent merchant accounts owing to the restriction of UCC on the banks to grant the merchant accounts without glancing in depth the credit score and history of a merchant. A merchant as a matter of fact is the seller of the goods that the customer exchanges for a price (Read, 2006).
Payment gateway: the payment gateway proceeds the credit card information entered by the customer, abiding by the requirements as imposed by the UCC the payment gateway processes the encrypted rather coded and secure consumer information to the payment authorization to the acquiring bank.
Acquiring bank: it is the bank of the payment gateway it decodes the encrypted consumer details and reaches on the exact issuing authority of the cash payment.
Credit issuing network: the acquiring bank authorized the credit card network or the clearing house so that the information about the account of the customer can be taken and as per the UCC norms the sales are only made on the availability of funds in the consumer's account.
Customer bank: the last resort for payment acquisition is the customer bank that gives the final signal that weather a payment can be executed or not as this bank is the bank of the consumer so it gives the information about the available funds. Once a signal of go through is made by the consumer bank the sale is made. As per the contract law of USA (Miller, 2003)
The Uniform Computer Information Transaction Act
The Uniform Computer Information Transaction Act (UCITA) is a contract law that has been developed to efficiently and effectively legalize transactions that involves non-tangible computer articles including the software and other intellectual properties. This also covers the online access to software, the access to the e-books and e-magazines. This particular act of The Uniform Computer Information Transaction Act was formulated over the surveys and efforts of four years since 1996 to the year 1999.
The Uniform Computer Information Transaction Act (UCITA) is mainly designed to be accepted as a formal consideration that has to be followed by the entire fifty legislations that are the states including the regions of Colombia and the American areas. Irrespective of the fact that The Uniform Computer Information Transaction Act (UCITA) has been designed over time and consideration from the point-of-view of both the buyer as well as the seller, but yet controversies have been observed to circulate pertaining to The Uniform Computer Information Transaction Act (UCITA)
In view of the fact that 2000 libraries have joined with a miscellaneous alliance of allies including retail and manufacturing concerns, consumer advocates, insurance and financial institutions and other nonprofits in the course of forming a strong opposition whenever The Uniform Computer Information Transaction Act (UCITA) is considered as their personal interests are affected by this commercial law (Mahdi, 2001).
The Uniform Computer Information Transaction Act (UCITA) has so far devised and organized itself in a way that the commercial law tends to induce consistency and confidence to the basic norms that are treated by the software and the websites that owns valuable information and researches worth hundreds of dollars but there are many reasons that…