On June 30, 2000, the U.S. Congress enacted the Electronic Signatures in Global and National
Commerce Act (ESIGN) to facilitate the use of electronic records and signatures in interstate and
foreign commerce by ensuring the validity and legal effect of contracts entered into electronically.
An important provision of the Act requires that:
A.
The e-commerce businesses do not have to determine whether the consumer has the ability to
receive an electronic notice before transmitting the legally required notices to the consumer.
B.
Businesses have the ability to use product price to persuade consumers to accept electronic
records instead of paper.
C.
Specific technologies be used to ensure technical compatibility.
D.
Businesses obtain electronic consent or confirmation from consumers to receive information
electronically that a law normally requires to be in writing.
Explanation:
The legislation is intent on preserving the consumers rights under consumer protection laws and
went to extraordinary measures to meet this goal. Thus, a business must receive confirmation from
the consumer in electronic format that the consumer consents to receiving information
electronically that used to be in written form. This provision ensures that the consumer has access to
the Internet and is familiar with the basics of electronic communications. Answer b is, therefore,
incorrect. Answer c is also incorrect since the legislation reduces the ability of businesses to use
product price unfairly to persuade consumers to accept electronic records. Answer d is incorrect
since the legislation is specifically technology-neutral to permit the use of the best technology for
the application.