elc 200 day 20
Transcript of elc 200 day 20
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WWWAwad – Electronic Commerce 2/e
© 2004 Pearson Prentice Hall2
Agenda
• I have decided to add one more assignment (9 total) – I will drop the lowest assignment score of the nine (leaving 8 scores)
• Assignment 7 is on Ethics – Due April 8 at start of class
– Complete the following• Grey Matters in Computer Ethics.doc
• Quiz 3 will be on April 8 – Change from April 5
– Chap 8-12
– 15 M/C (60 Points), 4 Short Essay (40 Points)
– Extra credit (5 Points)--- What is the derivation of the name “cookie” used byInternet Browsers?
• Discussion on Legal, Ethical and International Issues
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Chapter 12
Legal, Ethical, AndInternational Issues
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© 2004 Pearson Prentice Hall4
OBJECTIVES
• Ethical Issues
– What is Ethics?
– Major Threats – Improving the Climate
– Code of Ethics
– Self-Assessment
– Privacy Factor
• Legal Issues
– Liability Question
– Basis of Liability – Copyrights and
Trademarks
– Website – Product /
Service? – Warranties
– Strict Liability
– Taxation Issues
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Legality, Morality, Ethics
• Morality – Who I am
– Decided early in life• Family, Religion, Culture
• Ethics – What I Do
• Societies, associations
– Professional Codes of ethics• Medical, Education, Marketing
• Legality – Where I am
– Created by governments
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WHAT IS ETHICS?
• Fairness, justice, equity, honesty,
trustworthiness and equality
• Subjective
BDC
A
Legal
Immoral Moral
Illegal
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Where does it fit?
• Theft
– Theft to settle a debt
• Abortion
• Bombing of Iraq
• Capital Punishment
• Killing in self-defense
• Fraudulent sales
B
D
C
A
Legal
Moral
Illegal
Immoral
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Ethical (and maybe legal) Issues in
eCommerce• Privacy
• Confidentiality
• Integrity
• Property rights
– Software
– Piracy & Plagiarism
– Value and ownership of Data
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Privacy
• “There is no express right to privacy guaranteed in
the United States Constitution”
• Tort violation (Civil Law) – Intrusion onto seclusion
– Public disclosure of private facts
– False light publicity
– Commercial misappropriation of a person name or
likeness
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PRIVACY FACTOR
• Notice
– Right to be told in advance
• Choice – Final say regarding the use of personal info
• Access
– Access and correct any personal info
• Security/integrity• Enforcement
– Backed by the courts if any principles are violated
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MAJOR ETHICAL THREATS
• Faster computers and networks
• Sophisticated telecommunications and
routers
• Massive distributed databases
• Eases of access to information and
knowledge base
• Transparency of software
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IMPROVING THE CLIMATE
• Top management support
• Code of ethics
• Ethics training program
• Motivation to focus on honesty and
integrity
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WHERE TO START
• Bottom-up
– Inculcates ethics behavior at the employee level
with full support of top management
• Top-down
– The actions of the company start with the CEO
– Extend to a variety of stakeholders
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CODE OF ETHICS
• A declaration of principles and beliefs that governhow employees of a corporation are to behave
• Inspirational and disciplinary• All-encompassing and stable over time
• Examples
– http://www.acm.org/constitution/code.html
– http://www.apa.org/ethics/code2002.html – http://www.spj.org/ethics_code.asp
– http://www.ama-assn.org/ama/pub/category/2498.html
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SELF-ASSESSMENT
• A question-and-answer procedure
• Allows individuals to appraise and
understand their personal knowledge abouta particular topic
• An educational experience
• http://www.ethics.org/quicktest/index.cfm
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THE LIABILITY QUESTION
• Liability of Designer – Nontrivial errors
– Out-of-bound errors
– May be mitigated by principle of respondent superior
• Liability of User – Passive negligence
• Basis of Liability – Tort law (Civil versus criminal actions)
– Product Liability• Designer or Manufacturer of Product is liable
– Strict Liability• Seller is liable
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TORT LAWS ON INTERNET
• Settling contract problems between e-merchants and ISP – No regulatory body
• Fraud
– intent to deceive
• Negligence – failing to make certain action causing injury/material losses
• False advertising
– Lack of availability of Product• Misrepresentation
– claiming a product will perform certain functions when it could not
• Trademark violations
– under intellectual property law
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WEB SITE – PRODUCT/SERVICE?
• Product
– Software sold off-the-shelf
– Uniform Commercial Code (UCC) allowsdeveloper to limit liability for defective Web
sites though a disclaimer of warranties
• Service – Custom-designed software
– Negligence principles should be used
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WARRANTIES
• Assurance made by seller about the goods sold
• Express warranty – Offered orally or in writing by maker of products
• Implied warranty
– Arises automatically when a sale is made – Merchantability
• Disclaimer – Seller’s intention to protect the business from unwanted liability
• Legal
– Magnuson-Moss Consumer Product Warranty Act (1975) – Universal Commercial Code (UCCC)
– Maine Consumer code• http://www.state.me.us/ag/index.php?r=clg&s=chap4
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COPYRIGHT
• Copyrights
– Ownership of an original work created by an
author – A form of intellectual property protection
covers the “look and feel” and content of printed media
– Gives author the right to exclude others fromusing the finished work
– Good for life of its author + 70 years
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TRADEMARK/TRADE NAME
• A word/symbol distinguishing a good from
other goods in the market
• A maze of federal and state laws
• Ownership
– Web designer – “work made for hire”
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STRICT LIABILITY
• Joint liability for developers, manufacturers
and distributors if tort theory applies
• Protects Web visitor regardless of whether anyone is at fault
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TAXATION ISSUES
• Controversial
– Different jurisdiction – Consumers’ reaction
• Legal
– Internet Tax Freedom Act
• No taxes till 2001
– Internet Nondiscrimination Act of 2000
• No taxes till 2006 (5 year extension)