Legit At Last Taking one big step forward in cyber law, Georgia validates e-document protection.

Can a faxed signature or an e-mail message carrying an agreementto a contract serve as a valid contract in a court of law? InGeorgia¾and upward of 40 other states--they can. Georgiarecently enacted the Electronic Writings and Signatures Act,legalizing business conducted by e-mail and fax. The ruling meansany business or government entity conducting transactions andnegotiating deals via fax or e-mail now have contracts as valid andbinding as oral and written contracts, says H. West Richards,executive director of the Georgia Electronic Commerce Association,which spearheaded the effort.

There is precedence for handshakes and telegrams to legally bindagreements, legal experts note. Some have felt e-mail and faxeswould enjoy the same protection. But with no direct case law ine-commerce, state leaders sought a model that would apply, oftenusing case law based on oral agreements or telecommunications lawas a foundation. That poses a problem--as Richards points out,"it doesn't always transfer over nicely."

Consequently, Congress is considering a digital signatures bill.The National Conference of Commissioners on Uniform State Laws, afederal-state consortium, is reviewing a Uniform ElectronicTransactions Act (UETA) that creates groundwork for digitalagreement uniformity.

While the state follows Florida, Illinois, Utah, Virginia andothers that have passed various laws on the issue, Georgia's isseen as being among the most sweeping in scope. It even allowselectronic records to satisfy requirements for archival of writtendocuments like contracts or other legal agreements, according toRichard Keck, a partner with Atlanta legal firm Troutman SandersLLP and chief architect of the bill. "That's a hugeimpact," Keck says. "It certainly reduces your cost ofhaving to put things in paper and store them."

The law was spurred by big corporations like BellSouth, Equifaxand Georgia Power, which had been faxing contracts and assumingthey were legal, Richards says.

For corporations and homebased businesses alike, the need--andremedy--is clear. "It's going to affect privacy,intellectual property, risk management, e-commerce," Richardssays. "The Internet is like the wild, wild West. Therearen't any rules."

Now, in Georgia--and a growing number of states--there are.

Contact Source
Georgia Electronic Commerce Association
http://www.geca.org

Troutman Sanders LLP
(404) 885-3236

Jeff Zbar is a homebased writer, speaker and author ofHome Office Know-How (Upstart Publishing).