1. Chapter 15 Legal & Ethical Issues

2. OBJECTIVES Ethical Issues Legal Issues What is Ethics? Major Threats
Legal & Ethical Issues: Objectives
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 & Trademarks
Website – Product / Service?
Warranties
Strict Liability
Taxation Issues

3. Legal & Ethical Issues: Ethical Issues
WHAT IS ETHICS?
Fairness, justice, equity, honesty, trustworthiness & equality
Subjective
Legal B C
Immoral
Moral A D
Illegal

4. MAJOR THREATS Faster computers & networks
Legal & Ethical Issues: Ethical Issues
MAJOR THREATS
Faster computers & networks
Sophisticated telecommunications & routers
Massive distributed databases
Ease of access to information & knowledge base
Transparency of software

5. IMPROVING THE CLIMATE Top management support Code of ethics
Legal & Ethical Issues: Ethical Issues
IMPROVING THE CLIMATE
Top management support
Code of ethics
Ethics training program
Motivation to focus on honesty & integrity

6. WHERE TO START Bottom-up Top-down
Legal & Ethical Issues: Ethical Issues
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

7. Legal & Ethical Issues: Ethical Issues
CODE OF ETHICS
A declaration of principles and beliefs that govern how employees of a corporation are to behave
Inspirational & disciplinary
All-compassing & stable over time

8. SELF-ASSESSMENT A question-and-answer procedure
Legal & Ethical Issues: Ethical Issues
SELF-ASSESSMENT
A question-and-answer procedure
Allows individuals to appraise & understand their personal knowledge about a particular topic
An educational experience

9. PRIVACY FACTOR Notice Choice Access Security/integrity Enforcement
Legal & Ethical Issues: Ethical Issues
PRIVACY FACTOR
Notice
Right to be told in advance
Choice
Final say regarding the use of personal info
Access
Access & correct any personal info
Security/integrity
Enforcement
Backed by the courts if any principles are violated

10. THE LIABILITY QUESTION
Legal & Ethical Issues: Legal Issues
THE LIABILITY QUESTION
Liability of Designer
Nontrivial errors
Out-of-bound errors
Liability of User
Passive negligence
Basis of Liability
Tort law
Product liability

11. Legal & Ethical Issues: Legal Issues
TORT LAWS ON INTERNET
Settling contract problems between e-merchants & ISP
Fraud – intent to deceive
Negligence – failing to make certain action causing injury / material losses
False advertising
Misrepresentation – claiming a product will perform certain functions when it could not
Trademark violations – under intellectual property law

12. Legal & Ethical Issues: Legal Issues
COPYRIGHT
Copyrights
Ownership of an original work created by an author
A form of intellectual property protection covers the ‘look & 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

13. Legal & Ethical Issues: Legal Issues
TRADEMARK / TRADE NAME
A word / symbol distinguishing one good from other goods in the market
A maze of federal & state laws
Web designer – ‘work made for hire’

14. WEBSITE – PRODUCT/SERVICE?
Legal & Ethical Issues: Legal Issues
WEBSITE – PRODUCT/SERVICE?
Product
Software sold off the shelf
Uniform Commercial Code (UCC) allows developer to limit liability for defective websites though a disclaimer of warranties
Service
Custom-designed software
Negligence principles should be used

15. WARRANTIES Assurance made by seller about the goods sold
Legal & Ethical Issues: Legal Issues
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
Seller’s intention to protect the business from unwanted liability

16. Legal & Ethical Issues: Legal Issues
STRICT LIABILITY
Joint & several liability for developers, manufacturers & distributors if tort theory applies
Protects web visitor regardless of whether anyone is at fault

17. TAXATION ISSUES Controversial Different jurisdiction
Legal & Ethical Issues: Legal Issues
TAXATION ISSUES
Controversial
Different jurisdiction
Consumers’ reaction

18. Chapter 15 Legal & Ethical Issues