Uniform Electronic Transactions Act

Last updated September 27, 2024

The Uniform Electronic Transactions Act (UETA) is one of the several United States Uniform Acts proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL). Forty-nine states, the District of Columbia, and the U.S. Virgin Islands have adopted the UETA. Its purpose is to harmonize state laws concerning retention of paper records (especially checks) and the validity of electronic signatures.

Overview

The act was approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and is adopted on a state-by-state basis giving them the option to accept or reject the guideline set forth in the act.^[1]

This act is a precursor to the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000.^[2]

Breakdown of the law

The text of the UETA is available on the Uniform Law Commission website.^[3]

Section 2: Definitions: (7) Electronic record - means a record created, generated, sent, communicated, received, or stored by electronic means.

(8) Electronic signature - means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

Another important aspect of this definition lies in the necessity that the electronic signature be linked or logically associated with the record. In the paper world, it is assumed that the symbol adopted by a party is attached to or located somewhere in the same paper that is intended to be authenticated, e.g., an allonge firmly attached to a promissory note, or the classic signature at the end of a long contract. These tangible manifestations do not exist in the electronic environment, and accordingly, this definition expressly provides that the symbol must in some way be linked to, or connected with, the electronic record being signed. This linkage is consistent with the regulations promulgated by the Food and Drug Administration. 21 CFR Part 11 (March 20, 1997).

Section 3: Scope: The Scope of this Act is inherently limited by the fact that it only applies to transactions related to business, commercial (including consumer) and governmental matters. Consequently, transactions with no relation to business, commercial or governmental transactions would not be subject to this Act. Unilaterally generated electronic records and signatures which are not part of a transaction also are not covered by this Act.

Section 4: Application "...applies to any electronic record or electronic signature created, generated, sent, communicated, received, or stored"

Section 5(a): states that transactions are not required to be in electronic form

Section 5(b):: (b) This [Act] applies only to transactions between parties each of which has agreed to conduct transactions by electronic means. Whether the parties agree to conduct a transaction by electronic means is determined from the context and surrounding circumstances, including the parties' conduct.

Section 6: The application and intended purpose of the Act is listed, which is intended, "to facilitate and promote commerce and governmental transactions by validating and authorizing the use of electronic records and electronic signatures"

Section 7: Legal recognition of electronic signatures, records, and contracts: (a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.; (b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.; (c) If a law requires a record to be in writing, an electronic record satisfies the law.; (d) If a law requires a signature, an electronic signature satisfies the law.

Section 8: Provides that the information be available to all parties.: (a) ...An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.; (c) If a sender inhibits the ability of a recipient to store or print an electronic record, the electronic record is not enforceable against the recipient.

Section 9: Attribution and effect of an electronic record and electronic signatures: (a) An electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.; (b) The effect of an electronic record or electronic signature attributed to a person under subsection (a) is determined from the context and surrounding circumstances at the time of its creation, execution, or adoption, including the parties' agreement, if any, and otherwise as provided by law.

Section 10: Errors and changes

Section 11: Permits a notary public and other authorized officers to act electronically, effectively removing the stamp/seal requirements.

Section 12: The requirement of "retention of records" is satisfied by retaining an electronic record

(a) If a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record which:

(1) accurately reflects the information set forth in the record after it was first generated in its final form as an electronic record or otherwise; and

(2) remains accessible for later reference.

(c) A person may satisfy subsection (a) by using the services of another person if the requirements of that subsection are satisfied.

Section 13: Admissibility

Section 14: Automated transactions: (1) discussed situations where "...contract may be formed by the interaction of electronic agents of the parties, even if no individual was aware of or reviewed the electronic agents' actions or the resulting terms and agreements."; (2) applies to a contract that "may be formed by the interaction of an electronic agent and an individual".

Section 15: Defines the "Time and Place" aspects of electronic transmissions.: Comment 1. This section provides default rules regarding when and from where an electronic record is sent and when and where an electronic record is received. This section does not address the efficacy of the record that is sent or received. That is, whether a record is unintelligible or unusable by a recipient is a separate issue from whether that record was sent or received. The effectiveness of an illegible record, whether it binds any party, are questions left to other law.

Section 16 outlines transferable records

(c) A system satisfies subsection (b), and a person is deemed to have control of a transferable record, if the transferable record is created, stored, and assigned in such a manner that:

(1) a single authoritative copy of the transferable record exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;

Section 17-19 have been bracketed as optional provisions to be considered for adoption by each State.

Related Research Articles

A statute of frauds is a form of statute requiring that certain kinds of contracts be memorialized in writing, signed by the party against whom they are to be enforced, with sufficient content to evidence the contract.

A digital signature is a mathematical scheme for verifying the authenticity of digital messages or documents. A valid digital signature on a message gives a recipient confidence that the message came from a sender known to the recipient.

The Uniform Commercial Code (UCC), first published in 1952, is one of a number of uniform acts that have been established as law with the goal of harmonizing the laws of sales and other commercial transactions across the United States through UCC adoption by all 50 states, the District of Columbia, and the Territories of the United States.

An electronic signature, or e-signature, is data that is logically associated with other data and which is used by the signatory to sign the associated data. This type of signature has the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation under which it was created.

A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document. More specifically, it is a document contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term has different meanings depending on its use in the application of different laws and depending on countries and contexts. The word "negotiable" refers to transferable and "instrument" refers to a document giving legal effect by the virtue of the law.

The Electronic Signatures in Global and National Commerce Act is a United States federal law, passed by the U.S. Congress to facilitate the use of electronic records and electronic signatures in interstate and foreign commerce. This is done by ensuring the validity and legal effect of contracts entered into electronically; the Act was signed into law by President Bill Clinton on June 30, 2000, and took effect on October 1, 2000.

The posting rule is an exception to the general rule of contract law in common law countries that acceptance of an offer takes place when communicated. Under the posting rule, that acceptance takes effect when a letter is posted ; the post office will be the universal service provider, such as the UK's Royal Mail, the Australia Post, or the United States Postal Service. In plain English, the "meeting of the minds" necessary to contract formation occurs at the exact moment word of acceptance is sent via post by the person accepting it, rather than when that acceptance is received by the person who offered the contract.

Data retention defines the policies of persistent data and records management for meeting legal and business data archival requirements. Although sometimes interchangeable, it is not to be confused with the Data Protection Act 1998.

The Unfair Contract Terms Act 1977 is an act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.

Title 21 CFR Part 11 is the part of Title 21 of the Code of Federal Regulations that establishes the United States Food and Drug Administration (FDA) regulations on electronic records and electronic signatures (ERES). Part 11, as it is commonly called, defines the criteria under which electronic records and electronic signatures are considered trustworthy, reliable, and equivalent to paper records.

This article summarizes the same-sex marriage laws of states in the United States. Via the case Obergefell v. Hodges on June 26, 2015, the Supreme Court of the United States legalized same-sex marriage in a decision that applies nationwide, with the exception of American Samoa and sovereign tribal nations.

A Digital Postmark (DPM) is a technology that applies a trusted time stamp issued by a postal operator to an electronic document, validates electronic signatures, and stores and archives all non-repudiation data needed to support a potential court challenge. It guarantees the certainty of date and time of the postmarking. This global standard was renamed the Electronic Postal Certification Mark (EPCM) in 2007 shortly after a new iteration of the technology was developed by Microsoft and Poste Italiane. The key addition to the traditional postmarking technology was integrity of the electronically postmarked item, meaning any kind of falsification and tampering will be easily and definitely detected.

Worldwide, legislation concerning the effect and validity of electronic signatures, including, but not limited to, cryptographic digital signatures, includes:

<span class="mw-page-title-main">Uniform Probate Code</span> Uniform act by National Conference of Commissioners on Uniform State Laws

The Uniform Probate Code is a uniform act drafted by National Conference of Commissioners on Uniform State Laws (NCCUSL) governing inheritance and the decedents' estates in the United States. The primary purposes of the act were to streamline the probate process and to standardize and modernize the various state laws governing wills, trusts, and intestacy.

The Uniform Environmental Covenants Act (UECA) is one of the uniform acts drafted by the National Conference of Commissioners on Uniform State Laws, a non-profit, American unincorporated association. The act is intended to provide clear rules for perpetual real estate interests – an environmental covenant – to regulate the use of brownfield land when real estate is transferred from one owner to another. The Uniform Law Commissioners completed the proposed act in 2003. Several states have adopted the Act.

Uniform Computer Information Transactions Act (UCITA) was an attempt to introduce a Uniform Act for the United States to follow. As a model law, it only specifies a set of guidelines, and each of the States should decide if to pass it or not, separately. UCITA has been drafted by National Conference of Commissioners on Uniform State Laws (NCCUSL).

The Misrepresentation Act 1967 is a United Kingdom act of Parliament of the United Kingdom which amended the common law principles of misrepresentation. Prior to the Act, the common law position was that there were two categories of misrepresentation: fraudulent and innocent. The effect of the act is primarily to create a new category by dividing innocent misrepresentation into two separate categories: negligent and "wholly" innocent; and it goes on to state the remedies in respect of each of the three categories.

Enterprise forms automation is a company-wide computer system or set of systems for managing, distributing, completing, and processing paper-based forms, applications, surveys, contracts, and other documents. It plays a vital role in the concept of a paperless office.

The United Nations Convention on the Use of Electronic Communications in International Contracts is a treaty that aims at facilitating the use of electronic communications in international trade. It was prepared by the United Nations Commission on International Trade Law (UNCITRAL) and adopted by the United Nations General Assembly on 23 November 2005. Pursuant to Article 23, it entered into force on 1 March 2013, the first day of the month after six months passed following adoption by three States parties, namely the Dominican Republic, Honduras, and Singapore.

Radiation Control for Health and Safety Act of 1968 was an amendment to the Public Health Service Act mandating performance standards for electronic products suspectible of electromagnetic radiation or radiation emissions. The United States statute established provisions involving research and development programs for the studies of electromagnetic shielding, ionizing radiation, non-ionizing radiation, and exposure assessment to humans.

References

↑ "Electronic Transactions Act - Uniform Law Commission". www.uniformlaws.org. Retrieved September 27, 2024.
↑ "Privacy Policy | www.formsonfire.com | Offline Mobile Forms". www.formsonfire.com. Retrieved May 31, 2024.
↑ "Uniform Electronic Transactions Act" (PDF). uniformlaws.org. National Conference of Commissioners on Uniform State Laws. 1999. Retrieved April 10, 2022.

External links

UETA laws

UETA articles and opinions

THE E-COMMERCE REVOLUTION - E-SIGN and UETA Archived from the original on 2011-07-28.
New Laws of e-Commerce - UETA Archived from the original on 2011-07-21.

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.

[1] "Electronic Transactions Act - Uniform Law Commission". www.uniformlaws.org. Retrieved September 27, 2024.

[2] "Privacy Policy | www.formsonfire.com | Offline Mobile Forms". www.formsonfire.com. Retrieved May 31, 2024.

[3] "Uniform Electronic Transactions Act" (PDF). uniformlaws.org. National Conference of Commissioners on Uniform State Laws. 1999. Retrieved April 10, 2022.

[1]

[2]

[3]