On-line trading : legal issues for Maltese businesses

Abstract

In my opinion this is a pessimistic way of looking at changes. However if one is not prepared for changes the end result may be dramatic. The aim of this thesis is to look at the possible changes that have taken place and that may still take place in the business industry from the legal point of view and analyse Malta's position in this new era of electronic commerce. Chapter 1 gives a clear picture of the legal developments trying to keep up with the technological developments these last forty years. A detailed explanation has been given to the regulatory framework for standardisation of EDI. This is important since EDI is the precursor of on-line transactions and most principles adopted in today's electronic commerce laws emerged from the original legal framework adopted for EDI. As can be seen standardisation of laws is not easy to attain. In fact even at the European arena, countries have adopted different legislation, some opting for the technological neutral law and others opting for more specific laws. This thesis examines those laws which were important for the drafting of the Maltese Electronic Commerce Act and finally it analysis the Act itself. Chapter 2 examines the notion of a contract and subsequently the electronic contract. Traditional legal concepts of place and time of conclusion of a contract have changed in the light of e-contracting. These concepts have been examined and compared to the same concepts adapted to an electronic contract by making reference to the Electronic Commerce Act. Chapter 3 examines the problems faced wen making an electronic payment. Even though electronic payments are faster, its methods still create problems of security. Furthermore the right to privacy is an important issue which arises every time a person and a business enters a transaction electronically. This chapter examines the solutions adopted by theEuropean Union and the solution of the United States which has a totally different method of regulating electronic commerce. This leads to the analysis of the Data Protection Bill which is at its second reading in Parliament .. By the above mentioned analysis it is clear that certain aspects in our new laws have to be re-examined. A traditional island like Malta has to be very careful to the developments taking place worldwide and cannot afford to remain a passive viewer risking to lose an opportunity to exploit its business industry.