Exercise & Fitness

On 30 June 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act ( "design" or "Act"), to facilitate the use of electronic records and signatures in interstate and foreign commerce, ensuring the validity and legal effect of contracts entered into electronically. However, many do not understand how your business can be compatible with the E-SIGN Act.

First we must understand that E-SIGN, in section 101 (b) does not require people to use electronic signatures. When electronic signatures are used then subsection (c) in direct support of (b) requires disclosure of "consumer" that the consumer also "consent means electronic, so that reasonably demonstrates that consumers can access information in electronic form which is used to provide information that is the issue of consent.

As you can see clearly the law establishes a two-step process to sign the electronic files. First, the disclosure of consumers right to use paper, which is followed by its consent to the electronic process. The second phase is the actual capture of electronic signatures.

Once the signature is captured law directs his attention to electronic document has been created. This aspect of the law, though often overlooked, provides the real power and cost savings of electronic signatures – the ability to store electronic files. Printing and storing a paper copy of the electronic record defeat the achievements of this law. This is the accessibility and storage costs low cost electronic files that really amount to significant cost savings over time. Sub-section (d) details of the retention of contracts and records. If a "statute, regulation or other rule of law requires" the file to be retained then "that requirement is met by retaining an electronic record.

The accuracy and availability are discussed in both d.1.B () and (e). The record must be available to all parties involved, which is easily accomplished by allowing each signatory to save an electronic copy of the record in its own computer. The electronic record and signature must be created in a format that is both accurate and accessible. The sense that the technology of reading, viewing and transfer of registration is in a generally acceptable. This aspect of the law requires businesses to choose the electronic signature services that give them flexibility.

PrivaSign provides a multi-step approach to "consumer disclosure" by disseminating multiple messages to the signer. Acknowledgment of receipt of this communication is captured as evidence that the consumer has been informed, and not accept the use of an electronic process.

"PrivaSign electronic records, compatible with both subsection (d) and (e). All files PrivaSign Stores for a minimum of 3 months. Additional storage may purchased or at any time during the 3 months, both the sender and the receiver can download the file to enable be in compliance with these laws. This downloaded file can be saved on your computer, saved in a portable medium (CD, DVD or otherwise) or even print on paper. Capture PrivaSign integrity hash file so that all parties can verify the integrity of files stored.

PrivaSign allows any type of file to be signed electronically. This increases the availability of electronic registration as described in (d.1B) and (e) and gives each company the ability select the best electronic format for their customers.

About the Author:

By: Isaac Bowman

Isaac Bowman is Vice President of the Electronic and Digital Signatures International Standards Commission and an IT business consultant. He graduated form UT of Dallas with a major in Information Systems. Isaac Bowman has published over 50 articles on electronic signatures and completed the largest online resource for electronic signature laws and regulations.

ibowman@privasign.com
www.isaacbowman.com
Additional Law References

Article Source: ArticlesBase.com – Understanding the Law – E-SIGN Compliant Electronic Signatures

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