Fundamentals of business law

The rise of the new electronic media provides much new work for legal scholars and for economic scholars of law. The Contract law can be extended with straightforward fashion to the problems of electronic commerce. . Of course the rise of electronic commerce causes few new conceptual challenges to existing legal analysis. But it should be learnt the relative costs of particular precautions and expenditures are different in electronic settings than traditional costs. The relative cost impact on policy considerations on electronic law. PROCESS

In Electronic settings, we expect to see less use of specific relief and more use of market oriented remedies which will cover in difference in value. In the increased electronic contracting it is possible of greater access to the electronic media focused with distant markets, enhanced product competition and better information about product quality and seller reliability. Sellers may also make use of electronic retail outlets to engage in rice discrimination between electronic and traditional customers. Such effects threaten to reinforce the existing social and economic equalities.

It includes the suburbanization in the US will have the effect of cutting many central-city residents off from suburban commercial and employment opportunities too. CONCLUSION DISADVANTAGES The Act is designed to facilitate to use of electronic contracting. It applies to transactions where the parties have agreed to conduct their transaction electronically. Under this Act, if the sender of an electronic record inhibits the printing or storing of that record, the electronic record is not enforceable against the recipient which is disadvantageous.

CONTRACTING COSTS Electronic technology lowers the cost of contracting and hence reduces the justification for state on this ground. However cost of rent seeking is excluded. In traditional exchange contracts, the parties may be tempted to devote efforts in favor of strategic delay. Such costs are likely to be lessened in the electronic setting because of the increased possibility of turning to other contractual partners. MARKET FAILURE

In respect of market failure, there will be great difference between the electronic and traditional settings. The growth of electronic media should mitigate the problem of imperfect information in contracting by reducing the relative costs of acquiring processing such information. For example, the parties who might previously have lacked the time to investigate counterparty’s reputation or terms of the specific contract will now be able to do so at lower cost. And they are also in better position to shop with comparative price and other terms.