Reference no: EM131073856
According to the definitions contained within the UETA, an electronic record and an electronic signature are two different things that must be linked together in order to remain enforceable under the law. An e-signature must be attached to or located somewhere on the electronic document in order for the document to be valid. Terms like "automatic transaction" and "computer program" are defined broadly to give companies leeway in the ways in which they choose to do business without sacrificing consumer protections.
Section 2 of the UETA defines electronic record and an electronic signature as follows:
(1) Electronic record - means a record created, generated, sent, communicated, received, or stored by electronic means.
(2) Electronic signature - means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
Another important aspect of this definition lies in the necessity that the electronic signature be linked or logically associated with the record. In the paper world, it is assumed that the symbol adopted by a party is attached to or located somewhere in the same paper that is intended to be authenticated, e.g., an allonge firmly attached to a promissory note, or the classic signature at the end of a long contract. These tangible manifestations do not exist in the electronic environment, and accordingly, this definition expressly provides that the symbol must in some way be linked to, or connected with, the electronic record being signed. This linkage is consistent with the regulations promulgated by the Food and Drug Administration. 21 CFR Part 11 (March 20, 1997).
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