Chp 5 - E-commerce

Question 1

Electronic Commerce Act 2006 applies to — ?

Answer 1

Electronic Commerce Act 2006 applies to any commercial transaction conducted
through electronic means (including
commercial transactions by the Federal
and State Governments.)

Question 2

Electronic Commerce Act 2006 applies to any commercial transaction conducted
through electronic means except?

Answer 2

a) Power of attorney
b) The creation of wills and codicils
c) The creation of trusts
d) Negotiable instruments

Question 3

Defines commercial transactions.
What section?
Examples?

Answer 3

Section 5 of Electronic Commerce Act 2006
Definition: a single communication or
multiple communications of a commercial nature, whether contractual or not, which
includes any matters relating to the:

supply or exchange of goods or services, agency, investments, financing, banking and insurance. (FIASeBi)

Question 4

Legal Recognition of Electronic Messages
Sec no? Clause 1

Answer 4

Section 6 of Electronic Commerce Act 2006

(1) Any information shall not be denied legal effect, validity or enforceability on the ground that it is wholly or partly in an electronic form.

Question 5

Legal Recognition of Electronic Messages
Sec no? Clause 2

Answer 5

Section 6 of Electronic Commerce Act 2006

(2) Any information shall not be denied legal effect, validity or enforceability on the ground that the information is not contained in the electronic message that gives rise to such legal effect, but is merely referred to in that electronic message, provided that the information being referred to is accessible to the person against whom the referred information might be used.

Question 6

Legal Recognition of Electronic Messages
Section no?
Define?

Answer 6

Section 7(1) of Electronic Commerce Act 2006

In the formation of a contract, the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances or any related communication may be expressed by an electronic message.

Question 7

Legal requirements to use electronic means in commercial transactions is in what section? WSSWC

Answer 7

Sections of Electronic Commerce Act 2006
Writing - Section 8
Signature - Section 9 (1)
Seal - Section 10 (1)
Witness - Section 11
Copy - Section 14

Question 8

Define the legal requirements to use electronic means in commercial transactions WSSWC

Answer 8

Sections of Electronic Commerce Act 2006
Writing - Section 8
Where any law requires
information to be in writing, requirement is fulfilled if the information contained in an electronic
message that is accessible and intelligible
to be usable for later
reference.

Signature - Section 9 (1)
Where any law requires
a signature of a person on a document,, requirement is fulfilled if the document is in the form of an electronic message, by an electronic signature which:
a) attached to the electronic
message;
b) adequately identifies the person
c) is reliable

Seal - Section 10 (1)
Where any law requires a
seal to be affixed to a document, requirement is fulfilled, if the
document is in the form of an electronic
message, by a digital signature as
provided under the Digital Signature Act
1997.

Witness - Section 11
Where any law requires the
signature of a witness on a document, requirement is fulfilled, if the
document is in the form of an electronic
message, by an electronic signature of the
witness that complies with the
requirements of section 9.

Copy - Section 14
Where any law requires any
document to be retained, served, sent or
delivered in more than one copy, the
requirement is fulfilled, if the
document is in the form of an electronic
message, by retention, service, sending or
delivery of the document in one copy.

Question 9

Communication of Electronic Messages
Section? Define.

Answer 9

Section 17 (1) of Electronic Commerce Act 2006
- An electronic message is from originator if sent by the originator himself.

Section 17 (2) of Electronic Commerce Act 2006
- an electronic message is considered sent by originator if it is sent by:-
- a person who has the authority to act on behalf of the originator
- an information processing system
programmed by, or on behalf of, the originator to operate automatically.

Question 10

Section 9 of Computer Crimes Act 1997

Answer 10

Section 9 of Computer Crimes Act 1997
Commission of these offences
relating to the misuse of computers extraterritorially (that is, outside Malaysia) is punishable.

Question 11

Definitions of
Data, Computer network, Programme

Answer 11

Data means information or concepts that are prepared in a form suitable for use in a computer.

Computer network means the
interconnection of communication lines
and circuits with a computer or a complex(network) consisting of two or more interconnected computers.

Programme means data representing instructions or statements that, when executed in a computer, causes the computer to perform a function

Question 12

Offences in Computer Crimes Act 1997

Answer 12

Unauthorized modification of
the contents of any computer.

Unauthorized access to
computer material

Unauthorized access with intent to commit further offence

Wrongful communication of a
number, code, password or
other means of access to a
computer to any person other
than a person to whom he is
duly(properly) authorized to
communicate.

Question 13

Section 3 (1) of the Computer Crimes Act 1997

Answer 13

A person is guilty if:
(a) he causes a computer to perform any function with intent to secure access to any program or data held in any computer;
(b) the access he intends to secure is unauthorized; and
(c) he knows at the time when he causes the computer to perform the function that is the case.

Question 14

Define Section 8 of the Computer Crimes Act 1997

Answer 14

A person who has in his custody or control any program, data or other
information which is in any computer or retrieved from any computer which he
is not authorized to have in his custody or control shall be deemed to have obtained
unauthorized access to such program, data or information unless the contrary is
proved’

conviction be liable to a fine
not exceeding RM50,000 or imprisonment not exceeding 5 years or both

Question 15

Define Section 5 (1) of the Computer Crimes Act 1997

Answer 15

it is an offence if a person who does ‘any act which he knows will cause unauthorized modification of the contents of any computer’

• An essential element of this offence is knowledge.
  Besides that, it must also be proven that there was an ’act’. For example introducing a ‘virus’

Question 16

Define Section 10 (1) of the Computer Crimes Act 1997

Answer 16

Under section 10 (1) of the Computer Crimes Act 1997, the powers of the law
enforcement agency to search and seize evidence is subject to a warrant to be issued
by the Magistrate

Question 17

Purpose of Financial Services Act 2013?

Answer 17

-provides the regulation and
supervision of payment systems
-not entirely relevant to e-commerce

Question 18

Define Section 31 of the Financial Services Act 2013

Answer 18

Bank Negara Malaysia is of the opinion that:
a) a payment instrument(like ewallet, credit card, etc) may be widespread use as a means of making payment and may affect the payment systems in Malaysia, and
b) it is necessary to maintain the integrity, efficiency and reliability of the payment instrument

the Bank may, with the concurrence of the Minister of Finance, by an order published
in the Gazette, designate such payment instrument as a designated payment instrument.

Question 19

Define Section 33 of the Financial Services Act 2013

Answer 19

Section 33 of the Financial Services Act 2013 (1)The Bank may specify standards for payment systems for promoting safety, integrity, efficiency or reliability of the designated payment system
(2) An operator , an approved operator, a registered operator of a payment
system or an approved issuer of a designated payment instrument shall at all times comply with the standards specified by the Bank Negara which are applicable to such operator or issuer.

Question 20

When can Bank Negara Malaysia may issue directions in writing to any participant of a designated payment system?

Answer 20

Bank Negara Malaysia may issue directions in writing to any participant of a designated payment system if the Bank is of the opinion that it is necessary for ensuring
the integrity and proper management of the
designated payment system or it is the interest of the public to do so.

Question 21

How the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013
(IFSA) help Bank Negara Malaysia to regulate payments system

Answer 21

I. By providing for the regulation of financial institutions

II. By providing for the regulation and supervision of payment systems

III. By providing for the supervision of financial supervision

IV. By ensuring the integrity and proper management of the designated payment
system

V. By specifying standards for payment systems for promoting safety, integrity, efficiency and reliability of the designated payment systems

Question 22

Purpose of Digital Signature Act 1997 (DSA 1997)

Answer 22

i. regulating the use of digital signature in Malaysia
ii. ensuring the security of legal issues related to electronic transactions
iii. verifying the use of digital signatures through certificates issued by licensed Certification Authority.

Question 23

What is not Digital signatures?

Answer 23

i. not handwritten signatures
ii. not made using a pen-computer
iii. have no resemblance to an actual signature

Question 24

What is Digital signatures?

Answer 24

I. a string of data generated by cryptographic method, attached to a message to ensure its authenticity, to protect the recipient against repudiation by the sender.
II. need to create pair of keys - private key(secret) and the public key(freely distributed )
III. private key enables the authentication of the sender of the message.

Question 25

Define section 62 of the Digital Signature Act 1997

Answer 25

digital signature is authentic signature
The Act preserving the right of a person to a symbol instead of a handwritten signature.
(means can use symbol instead)

Question 26

Legal effects of documents signed with digital signatures

Answer 26

Sections of Digital Signature Act 1997
Section 62(2)(a) -
document is legally binding as a
document signed with a handwritten signature, affixed with a thumbprint or any other mark.

Section 62(2)(a) -
copy of the digitally signed
message shall be valid and
enforceable if it were
original, unless the signer had
specifically designated the
message to be the original.

Section 62(2)(b) -
the digital
signature shall be
deemed to be a
legally binding
signature.

Section 64 -
the document shall be
deemed to be as valid,
enforceable and effective
as if it had been written on
paper if the conditions set
out in section 64 are
satisfied.

Question 27

What are the benefits of digital signature in e-commerce transactions

Answer 27

There is authentication of the sender’s identity to the recipient by a
third party (the certification authority) who can be trusted.

There is verification of the genuineness of the message (that is,
there was no alteration).

There exists security of the information sent (that is, no one
can tamper with the message without jeopardizing the
verification process).

The sender is unable to repudiate the effect of the signature
(that is, the sender cannot deny his signature).

Question 28

Define section 63 of the Digital
Signature Act 1997

Answer 28

the risk of forged digital signatures lies on the recipient,
if such reliance is not reasonable under
the circumstances. This is also subject
to the terms of the contract.