LJU4810 PORTFOLIO 27 MAY
2024
FOR EXAMS, PORTFOLIO, AND ASSIGNMENT
ASSISTANCE
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, QUESTION 1
Amazon.com entrance into the South African e-commerce industry brings a fresh
dimension into an already competitive market, which is mostly controlled by
homegrown businesses such as Takealot. com. The electronic transaction legal
environment is thus important to be understood for Amazon to integrate effectively.
This legal advice explores the legal frameworks of Electronic Communications and
Transactions Act (ECTA) 25 of 2002 1 of South Africa, with reference to the
international models of e-commerce legislation, looking at the challenges facing e-
commerce in Africa and the possible solutions.
Though formulated independently, some principles of the ECTA can be correlated
with the UNCITRAL Model Law on Electronic Commerce, 2 as well as the e-
Commerce Directive of the European Union.3 Section 11 of ECTA provides that an
electronic contract has the same legal effect as a traditional contract and can be
equally easily enforced, provided it is in writing. 4 The legal standing of electronic
communications and contracts is supported by the UNCITRAL Model Law and the
EU e-Commerce Directive. These measures guarantee legal certainty and contribute
to the advancement of electronic transactions in business.
The ECTA as well as the EU e-Commerce Directive pays a lot of attention to the
protection of consumers. Section 43 of the ECTA requires online sellers to provide
information about themselves and the goods/services being sold in a clear and
understandable manner.5 The EU directive also contains similar provisions that
require a business to provide a consumer with sufficient information that they are
likely to need before entering into a contract.
Both ECTA and the models of the international models ensure the security of
electronic transactions. Section 13-14 of ECTA also contains provisions regarding
the safeguard of data and the recourse to the advanced electronic signatures 6,
1
Electronic Communications and Transactions Act 25 of 2002.
2
UNCITRAL Model Law on Electronic Commerce with Guide to Enactment 1996.
3
Directive 2000/31/EC of the European Parliament and of the Council of 8 June
2000.
4
Section 11 of Electronic Communications and Transactions Act.
5
Section 43 of Electronic Communications and Transactions Act.
6
Section 13-14 of Electronic Communications and Transactions Act.