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ELC 200

Day 21

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 by Internet Browsers?

Discussion on Legal, Ethical and International Issues

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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

Chapter 12

Legal, Ethical, And International Issues

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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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

WHAT IS ETHICS?
Fairness, justice, equity, honesty, trustworthiness and equality Legal Subjective
B
Immoral

Moral

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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 Immoral

Legal

Moral

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Illegal

Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

Ethical (and maybe legal) Issues in eCommerce


Privacy Confidentiality Integrity Property rights
Software Piracy & Plagiarism Value and ownership of Data

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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

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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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

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 govern how 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 about a 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

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under intellectual property law


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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

WEB SITE PRODUCT/SERVICE?


Product
Software sold off-the-shelf Uniform Commercial Code (UCC) allows developer 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
Sellers 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 from using 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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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

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)

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Awad Electronic Commerce 2/e 2004 Pearson Prentice Hall

Chapter 12

Legal, Ethical, And International Issues

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