Legitimacy - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

Students of Computer Science, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Legitimacy, Create Laws, Mandate, Cultures, Autonomy, Authority, Singapore, Severe Restrictions, Scandinavian Countries, Physical Boundaries

Typology: Slides

2012/2013

Uploaded on 07/29/2013

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Legitimacy
• The right to create laws and enforce laws derives
from the mandate of those who will be subject
to those laws.
• Some cultures allow their governments a high
degree of autonomy and authority.
Example: China and Singapore
• Other cultures place severe restrictions on the
authority of the government.
Example: Scandinavian countries
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Legitimacy

  • The right to create laws and enforce laws derives

from the mandate of those who will be subjectto those laws.

  • Some cultures allow their governments a high

degree of autonomy and authority.Example: China and Singapore

  • Other cultures place severe restrictions on the

authority of the government.Example: Scandinavian countries

Notice

  • Physical boundaries are an effective way to

announce the ending of one legal or culturalsystem and the beginning of another.

  • The perception that the laws and norms have

changed is needed to allow people to adjust.

  • Borders provide this notice.

Sufficient jurisdiction

  • If a person or organization wants to enforce their

rights under contracts or seek tort damages, theymust find courts that have sufficient jurisdiction.

  • A court has sufficient jurisdiction in a matter if it

has both:– Subject matter jurisdiction– Personal jurisdiction.

Subject-matter jurisdiction

Subject-matter jurisdiction is a court’s authorityto decide the type of dispute.In the United States:• Federal courts preside over federal law

(Bankruptcy, copyright, patent, federal taxes)

  • State courts deal with issues governed by states

(Professional licensing, state taxes) The rules are easy to apply for subject-matter.

Long-arm statutes

  • States can enact statutes that create personal

jurisdiction over nonresidents conductingbusiness or committing tortious acts in thestate.

  • In many cases, these laws are not clear with

respect to e-commerce.

  • The more business conducted, the more likely

a court will be to use a long-arm statute.

  • Courts are also assert jurisdiction when a crime

or intentional tort has occurred.

International issues

  • The exercise of jurisdiction across national borders

is governed by treaties between the countries.

  • In general, personal jurisdiction for foreign firms

and persons is determined by U.S. courts in thesame way as long-arm statues.

  • Jurisdictional issues are complex and changing.• Businesses should consult an attorney for advice.

Types of taxes

A online business is potentially subject to severaltypes of taxes:• Income taxes: Levied by national, state, and

local governments on the net income generatedby business activities.

  • Transaction taxes: Includes sales taxes, use taxes,

and customs duties.

  • Property taxes: Levied on the personal property

and real estate used in the business. Income and transaction taxes are most important.

Federal income taxes

  • In the U.S., any increase in a company’s wealth

is subject to federal taxation.

  • Any company whose U.S.-based Web site generates

income is subject to U.S. federal income tax.

  • A Web site maintained by a U.S. company must also

pay federal income tax on income generated outsidethe U.S. (The law provides a tax credit for taxespaid to foreign countries).