[Ecommerce] Article on the E-Sign and UETA

Fri, 13 Oct 2000 15:15:49 -0400

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Gail Hillebrand of Consumers Union and I have finally completed the attached
article on the relationship of the recently passed E-Sign law with the state
UETAs. We expect the article to be published in a law review, however, we
thought you might be interested in it sooner.   The article is attached
below in html and word perfect, or you can access it at www.consumerlaw.org

or at

www.consumer.org.

Please let me know if you have any questions.

Margot Saunders
Managing Attorney
National Consumer Law Center
1629 K Street, NW
Washington, D.C. 20006
(202) 986-6060
fax (202) 463-9462
margot@nclcdc.org
www.consumerlaw.org

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</style>
<title>E-Sign and UETA: What Should States Do Now </title>
</head>

<body lang=3DEN-US link=3Dblue vlink=3Dpurple =
style=3D'tab-interval:.5in;text-justify-trim:
punctuation'>

<div class=3DSection1 style=3D"width: 675; height: 733">

<p class=3DMsoNormal style=3D'tab-stops:center 3.25in' =
align=3D"center"><font face=3D"Times New Roman" size=3D"3"><span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span></font><font face=3D"Times New Roman" size=3D"4"><b>E-Sign and =
UETA:<span
style=3D"mso-spacerun: yes">=A0 </span>What Should States Do Now?<a
style=3D'mso-footnote-id:ftn1' href=3D"#_ftn1" name=3D"_ftnref1" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[1]<![endif]></span></sup></span></a></b><o:p></o:p></=
font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"4"><![if =
!supportEmptyParas]>&nbsp;</font><font face=3D"Times New Roman" =
size=3D"3"><![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>Introduction </b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Congress =
passed the Federal
Electronic Signatures in Global and National Commerce Act<a =
style=3D'mso-footnote-id:
ftn2' href=3D"#_ftn2" name=3D"_ftnref2" title=3D""><![if =
!supportFootnotes]>[2]<![endif]></a>
(=93E-Sign=94) in June 2000.=A0 =
This law
provides that electronic signatures and electronic records generally =
satisfy
legal requirements for signatures or writings.=A0
E-Sign authorizes the substitution of electronic notices for =
paper
notices including most, but not all, types of consumer notices.=A0 E-Sign also includes a number of =
important
protections to ensure that consumers can receive, keep and use =
electronic
notices provided to them. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><span =
style=3D"mso-spacerun:
yes">=A0</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Over =
twenty states have
enacted some version of the Uniform Electronic Transactions Act =
(=93UETA=94).<span
style=3D"mso-spacerun: yes">=A0 </span>This is a proposed Uniform Law on =
the same
subject matter as E-Sign that is recommended by the National Conference =
of
Commissioners on Uniform State Laws (=93NCCUSL=94).<span =
style=3D"mso-spacerun:
yes">=A0 </span>Some states have enacted the uniform version,<a =
style=3D'mso-footnote-id:
ftn3' href=3D"#_ftn3" name=3D"_ftnref3" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[3]<![endif]></span></sup></span></a>
while other states have added significant consumer protections not found =
in the
uniform version.<a style=3D'mso-footnote-id:ftn4' href=3D"#_ftn4" =
name=3D"_ftnref4"
title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:
footnote'><![if !supportFootnotes]>[4]<![endif]></span></sup></span></a> =
<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

E-Sign =
and UETA are similar
in many respects, but they are not at all similar in the way they treat
consumers.=A0 In consumer =
transactions,
E-Sign requires a specific and electronic consent process before an =
electronic
notice may replace a legally required written notice. UETA merely =
requires that
the parties agree to conduct transactions by electronic means, but does =
not
specify how that agreement is to be proven.=A0
Instead, UETA states that agreement is determined from the =
context and
circumstances.<a style=3D'mso-footnote-id:ftn5' href=3D"#_ftn5" =
name=3D"_ftnref5"
title=3D""><![if =
!supportFootnotes]>[5]<![endif]></a>=A0 UETA=92s agreement requirement =
applies to all
types of electronic notices (legal and contractual).=A0 UETA undercuts its own basic premise of agreement by =
permitting
the agreement to conduct transactions electronically to be found from =
the
context, including conduct.=A0 =
UETA also
permits the agreement for future electronic notices to be given only on
paper.=A0 UETA does not exempt =
any
categories of consumer notices. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

UETA =
alone is worse for
consumers than E-Sign on all major aspects except perhaps UETA=92s =
requirement of
agreement for electronic notices sent pursuant to contract, as well as =
its
recognition that state agencies can impose added requirements on =
retained
records subject to the agency=92s jurisdiction.=A0
The passage of E-Sign removes the key reason for states to enact =
UETA=97to
facilitate nationwide acceptance of electronic notices and electronic
signatures.=A0 Thus, a state =
might wisely
choose not to enact UETA in light of E-Sign.=A0
However, the National Conference of Commissioners on Uniform =
State Laws,
UETA=92s author, has representatives in every state who are expected to =
continue
to seek to enact UETA.=A0 If =
UETA is
enacted at all, it should be enacted in a way that does not =93modify, =
limit, or
supersede=94 the consumer protections of E-Sign. Ideally, it should be =
accompanied
by a companion consumer protection act.<o:p></o:p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

Can =
these two statutes
coexist?=A0 What is the impact =
of the
federal E-Sign Act in states that have enacted UETA? Should states that =
have
not passed UETA pass it now?=A0 =
If so, in what
form?=A0 What else can states =
do to
protect their consumers?<o:p></o:p>

</div>

<font face=3D"Times New Roman" size=3D"3">

<span style=3D'mso-fareast-font-family: Times New Roman; =
mso-ansi-language: EN-US; mso-fareast-language: EN-US; =
mso-bidi-language: AR-SA'><br clear=3Dall =
style=3D'page-break-before:auto;
mso-break-type:section-break'>
</span>

</font>

<div class=3DSection2 style=3D"width: 699; height: 1332">

E-Sign =
contains important
consumer protections that are absent from UETA.=A0 Like many other federal consumer protection laws, E-Sign
contemplates that states may add additional consumer protections which =
are
consistent with the federal act.<a style=3D'mso-footnote-id:ftn6' =
href=3D"#_ftn6"
name=3D"_ftnref6" title=3D""><![if =
!supportFootnotes]>[6]<![endif]></a>=A0 Surprisingly, however, E-Sign =
also contains
an apparent optional =93reverse preemption=94 feature which permits a =
state to
=93modify, limit, or supersede=94 parts of E&#8209;Sign with the uniform =
version of
UETA.<a style=3D'mso-footnote-id:ftn7' href=3D"#_ftn7" name=3D"_ftnref7" =
title=3D""><![if =
!supportFootnotes]>[7]<![endif]></a>=A0 Since E-Sign provides stronger =
consumer
protections than UETA in most areas, care must be taken that future =
state
enactments of UETA do not displace the federal consumer protections of
E-Sign.=A0 This article =
describes how to
structure any future UETA enactment to avoid interfering with E-Sign=92s =
consumer
protections. It also offers additional provisions which can and should =
be added
to state law, beyond both UETA and E-Sign, to improve state-level =
consumer
protection in electronic notices. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">This =
article is designed to
assist advocates, lawmakers and policymakers, as they face these =
choices:<o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in"><font face=3D"Times New Roman" =
size=3D"3"><![if !supportLists]>Should UETA be enacted
in a state now that the federal E-Sign statute is in =
place?<o:p></o:p></font></li>
</ul>
<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in"><font face=3D"Times New Roman" =
size=3D"3"><![if !supportLists]>Will UETA, if enacted,
displace E-Sign=92s consumer protections under E-Sign=92s optional =
reverse
preemption provision?<o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in"><font face=3D"Times New Roman" =
size=3D"3"><![if !supportLists]>What additional consumer
protections are needed for electronic notices?<o:p></o:p></font></li>
</ul>
<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in"><font face=3D"Times New Roman" =
size=3D"3"><![if !supportLists]>What consumer
protections may states enact as a companion to E-Sign?<br>
    <b><o:p></o:p></b></font></p>
  </li>
</ul>

<p class=3DMsoNormal style=3D'tab-stops:center 3.25in'><font =
face=3D"Times New Roman" size=3D"3"><b>Table of =
Contents</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3">Introduction <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">I.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Key Consumer-Related Provisions of =
E-Sign<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font face=3D"Times New =
Roman" size=3D"3">A. <span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span>E-Sign=92s Consent Requirements<o:p></o:p></font></p>

B. =A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
E-Sign Prohibits Substituting
Oral Communications for Written Notices<o:p></o:p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3">C. <span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span>E-Sign=92s Document Integrity and
Retention Requirements <o:p></o:p></font></p>

D. =A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
E-Sign Has Specific Exceptions
for Certain Consumer Notices<o:p></o:p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3">E.<span
style=3D"mso-spacerun: yes">=A0 </span><span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span>E-Sign's
Consumer Protections May Be Partially Eliminated by Federal Agency =
Action.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">II.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Why UETA Alone Is Bad for =
Consumers<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal>&nbsp;</p>

A.
UETA Permits Paper Agreement to
Receive Future Notices Electronically<o:p></o:p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in">&nbsp;</p>

B.
UETA Does Not Require That
Electronic Notices Can Be Opened and Read<o:p></o:p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in">&nbsp;</p>

C.
UETA
Leaves Open a Loophole for Face-to-Face Transactions Where the =
Salesperson Brings
Computer Equipment to the Consumer for One-Time =
Use<o:p></o:p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in">&nbsp;</p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in"><font face=3D"Times =
New Roman" size=3D"3">D.&nbsp;<span style=3D'mso-tab-count:1'>
</span>Both
UETA and E-Sign Overlook That Email Can Be Less Certain of Delivery than
Regular Mail, but E-Sign=92s Consent Rules Partially Address this =
Problem<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in">&nbsp;</p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in"><font face=3D"Times =
New Roman" size=3D"3">E.<span
style=3D'mso-tab-count:1'>&nbsp; </span>UETA Does Not Fully Assure
Unchanged Copies for Later Consumer Use<span style=3D"mso-spacerun: =
yes">=A0
</span><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in">&nbsp;</p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in"><font face=3D"Times =
New Roman" size=3D"3">F.<span
style=3D'mso-tab-count:1'>&nbsp; </span>Illusory Consumer Protection in
UETA<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

III. =
Relationship of E-Sign
and UETA

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><o:p></o:p></font></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font face=3D"Times New =
Roman" size=3D"3">A.
Preemption <o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font face=3D"Times New =
Roman" size=3D"3">B.&nbsp;<span
style=3D'mso-tab-count:1'> </span>Displacement <o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3">C.<span
style=3D"mso-spacerun: yes">=A0 </span>Choices
for States that Have Not Adopted UETA<o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Option
One =96<span style=3D"mso-spacerun: yes">=A0 </span>UETA with a =
Companion Consumer
Protection Law on Electronic&nbsp;&nbsp;&nbsp; =
Notices<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Option
Two =96<span style=3D"mso-spacerun: yes">=A0 </span>Companion Consumer =
Protection Law
Permitted by E-Sign Without UETA<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Option
Three =96 UETA with a =93No Displacement=94 =
Statement<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Option
Four =96<span style=3D"mso-spacerun: yes">=A0 </span>No =
UETA<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">&nbsp;Option
Five<span style=3D"mso-spacerun: yes">=A0 </span>=96 UETA Alone =96 Not =
Recommended<br>
    <o:p></o:p><br>
    </font></li>
</ul>

D.
Effect of Earlier-Enacted UETAs =A0 <o:p></o:p>

<ol>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left:.5in"><font =
face=3D"Times New Roman" size=3D"3">Pre-E-Sign State Law Does Not
Displace E-Sign<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Does
E-Sign Preempt Prior UETAs?<span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0 =
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0
    </span><o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">E-Sign Does Not Transform
Nonuniform UETAs into Uniform Ones<o:p></o:p></font></li>
  <li>
    <p class=3D"MsoNormal" style=3D"margin-left: 0.5in"><font =
face=3D"Times New Roman" size=3D"3">Recommendation for States with
Pre-existing UETAs<br>
    <o:p></o:p></font></li>
</ol>

E.
Can a State Permit Electronic
Delivery of the Notices Exempted in E-Sign? <o:p></o:p>

F.
UCITA
Amendments Should Not Affect E-Sign. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

IV. =
Language to Implement
These Approaches<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3">Conclusion<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Appendix =
1 - Comparison of
E-Sign and UETA on Key Issues <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Appendix =
2 - Recommended
Provisions to Accompany Any State Enactment of =
UETA<o:p></o:p></font></p>

</div>

<p>

<b><font face=3D"Times New Roman" size=3D"3"><span =
style=3D'mso-fareast-font-family: Times New Roman; mso-ansi-language: =
EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><br =
clear=3Dall style=3D'page-break-before:always;
mso-break-type:section-break'>
</span></font></b>

</p>

<div class=3DSection4 style=3D"width: 654; height: 206">

<p class=3DMsoNormal style=3D'tab-stops:center 3.25in' =
align=3D"center"><b><font face=3D"Times New Roman" size=3D"3"><span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>E-Sign =
and UETA:<span
style=3D"mso-spacerun: yes">=A0 </span>What Should States Do Now?<a
style=3D'mso-footnote-id:ftn8' href=3D"#_ftn8" name=3D"_ftnref8" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[8]<![endif]></span></sup></span></a><o:p></o:p></font=
></b></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>I.<span
style=3D"mso-spacerun: yes">=A0 </span><span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Key
Consumer-Related Provisions of E-Sign</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">The =
federal E-Sign bill
states these two general rules: <o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5in; margin-left: 1; =
margin-right: 0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]>Signatures, contracts or
other records may not be denied legal effect, validity, or =
enforceability solely because
    they are in electronic form; and <o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5in; margin-left: =
1"><font face=3D"Times New Roman" size=3D"3">A contract may not be
denied effect, validity, or enforceability solely because an electronic
signature or electronic record was used in its =
formation.<o:p></o:p></font></li>
</ul>

<p class=3DMsoNormal style=3D"text-indent: 0.5in; margin-left: =
0.5in"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

</div>

<div class=3DSection5 style=3D"width: 666; height: 2483">

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">E-Sign =
expressly affects only
requirements that contracts or other records be written, signed or in
non-electronic form.<span style=3D"mso-spacerun: yes">=A0 </span>All =
requirements
concerning the content and timing of notices found in other law are left
undisturbed.<a style=3D'mso-footnote-id:ftn9' href=3D"#_ftn9" =
name=3D"_ftnref9"
title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:
footnote'><![if =
!supportFootnotes]>[9]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>Whether an electronic notice must =
be
=93provided=94 or just =93made available=94 and how it is delivered are =
issues
determined by the underlying statute that requires a notice.<a
style=3D'mso-footnote-id:ftn10' href=3D"#_ftn10" name=3D"_ftnref10" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[10]<![endif]></span></sup></span></a>
Additionally, E&#8209;Sign cannot be used to require a person, other =
than
governmental agencies in certain situations, to agree to use electronic =
records
or signatures.<a style=3D'mso-footnote-id:ftn11' href=3D"#_ftn11" =
name=3D"_ftnref11"
title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:
footnote'><![if =
!supportFootnotes]>[11]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A.&nbsp; E-Sign=92s Consent
Requirements</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">E-Sign =
qualifies its general
rule of validity for electronic records with a special consent =
requirement for
consumer notices required by law.<span style=3D"mso-spacerun: yes">=A0
</span>E-Sign=92s consent rule, found in section 101(c), applies where =
another
statute, regulation or rule of law requires information to be provided =
or made
available to a consumer in writing.<a style=3D'mso-footnote-id:ftn12'
href=3D"#_ftn12" name=3D"_ftnref12" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[12]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>It requires all of the =
following:<o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]>There must be an
affirmative consent, which has not been =
withdrawn.<o:p></o:p></font></li>
</ul>
<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if !supportLists]>The =
consent must be
preceded by a clear and conspicuous statement informing the consumer of =
all of
the following:<o:p></o:p></font></li>
</ul>
<ol>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><![endif]>Any right or option to
receive the information on paper (if the option =
exists),<o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3"><span =
style=3D'font-style: normal; font-variant: normal; font-weight: =
normal'>&nbsp;</span><![endif]>How to withdraw the
consent and whether any other consequences, such as fees or termination =
of the
arrangement, will be imposed on the withdrawal,</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3"><![endif]>How to update =
the contact
information, and&nbsp;</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3"><![if !supportLists]>How =
to obtain a paper
copy on request and the fee, if any, for that =
copy.<o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3">Before the consent is
given, the consumer must be provided with a statement of the hardware =
and
software requirements for access to and for retaining the electronic =
records.</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3">The consumer's consent
must be obtained or confirmed electronically (not just on =
paper).&nbsp;</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3"><![if !supportLists]>The =
manner of obtaining
the electronic consent or confirmation must reasonably demonstrate that =
the
consumer can access information =93in the electronic form that will be =
used to
provide the future information.&quot;<a style=3D'mso-footnote-id:ftn13'
href=3D"#_ftn13" name=3D"_ftnref13" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[13]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
1in"><font face=3D"Times New Roman" size=3D"3">The consumer's consent
must be reacquired if there is a change in the hardware or software
requirements needed to access or to retain the electronic record and the =
change
creates a material risk that the consumer will not be able to access or =
store
records delivered electronically.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></li>
</ol>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3">E-Sign=92s requirement that
consumer consent be given or confirmed electronically is of crucial
importance.<span style=3D"mso-spacerun: yes">=A0 </span>Paper consent to =
future
electronic transactions creates a risk that consumers will be offered
boilerplate paper agreements to receive future electronic notices that =
they may
or may not be able to open and read.<span style=3D"mso-spacerun: =
yes">=A0
</span>The federal requirement that consent be given or confirmed =
electronically
eliminates this risk, at least for notices legally required to be in =
writing.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">In =
contrast, UETA merely
requires agreement, but does not specify how that agreement is to be
proven.<span style=3D"mso-spacerun: yes">=A0 </span>Instead, UETA states =
that
agreement can be determined from the context and circumstances.<a
style=3D'mso-footnote-id:ftn14' href=3D"#_ftn14" name=3D"_ftnref14" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[14]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>UETA undercuts its own basic =
premise of
agreement by permitting the agreement to conduct transactions =
electronically to
be found from the context, including conduct.<span =
style=3D"mso-spacerun: yes">=A0
</span>UETA also permits an agreement to receive future electronic =
notices to
be given only on paper.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3"><b>B.&nbsp;<span style=3D'mso-tab-count:1'>
</span>E-Sign Prohibits
Substituting Oral Communications for Written =
Notices</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

UETA =
would allow a tape
recording of a voice conversation to qualify as an electronic record =
that can
replace a notice required by law to be in writing. E-Sign explicitly =
prohibits
this for consumer notices.<a style=3D'mso-footnote-id:ftn15' =
href=3D"#_ftn15"
name=3D"_ftnref15" title=3D""><![if =
!supportFootnotes]>[15]<![endif]></a>
<o:p></o:p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font face=3D"Times New =
Roman" size=3D"3"><b>C.&nbsp;<span style=3D'mso-tab-count:1'>
</span>E-Sign=92s Document
Integrity and Retention Requirements</b> <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Record =
=93integrity=94 standards
are important because both UETA and E-Sign generally allow electronic =
records
to replace documents required by law to be in writing. Yet the law
traditionally has made certain inherent assumptions that about the
characteristics of paper =93writings=94 that are not necessarily =
applicable to
electronic records: <o:p></o:p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">A paper writing is by
its nature tangible. Once handed to a person a paper writing will not =
disappear
unless lost or destroyed by the recipient. <o:p></o:p></font></li>
</ul>
<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if !supportLists]>The =
printed matter on the
paper writing will not change each time someone views it.<span
style=3D"mso-spacerun: yes">=A0 </span>The writing can be used at a =
later time to
prove its contents.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></li>
</ul>
<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]>While the information on
the paper can be deliberately changed by forgery, that takes an effort =
and some
skill. <o:p></o:p></font></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">None of =
those assumptions
necessarily applies to an electronic record.<span style=3D"mso-spacerun: =
yes">=A0
</span>Congress recognized these distinctions when it passed E-Sign, and
E-Sign=92s provisions are stronger on these points than UETA.<span
style=3D"mso-spacerun: yes">=A0 </span>UETA does not require that the =
format used
for electronic records be change-proof or tamper-proof.<span
style=3D"mso-spacerun: yes">=A0 </span>Under UETA, a record can be sent =
to a person
in a format that allows the record to be inadvertently changed every =
time it is
opened.<span style=3D"mso-spacerun: yes">=A0 </span>Imagine the problems =
that might
result if the homeowner's copy of a mortgage note was saved in an
automatically-updating word processing format, such that every time the
homeowner reviewed the document electronically, the record was saved =
with a new
date on it.<span style=3D"mso-spacerun: yes">=A0 </span>The mortgage =
company will
have kept its own electronic copy in a more secure fashion, and will =
have the
technical capacity to prove in a court of law that the electronic =
document it
has in its possession is the same one electronically signed by the
homeowner.<span style=3D"mso-spacerun: yes">=A0 </span>Yet, if the =
homeowner had
been provided only with a version that can be inadvertently changed, the
homeowner will face a much tougher battle using his or her copy to prove =
the
terms of the contract.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">E-Sign, =
while not perfect,
attempts to address this concern by requiring that the record be =
provided in a
format that can be accurately reproduced for later reference by =
<u>all</u>
parties who are legally entitled to retain the record.<a =
style=3D'mso-footnote-id:
ftn16' href=3D"#_ftn16" name=3D"_ftnref16" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[16]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>It is important to note that, =
unlike the
consent provisions, the retention and integrity requirements of E-Sign =
are not
limited to consumers; they apply to all users of electronic =
records.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font face=3D"Times New =
Roman" size=3D"3"><b>D.&nbsp;<span style=3D'mso-tab-count:1'>
</span>E-Sign Has Specific
Exceptions for Certain Consumer Notices</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Congress =
was convinced that
some notices to consumers are so important that state law requiring =
paper
notices should not be preempted to allow electronic records to replace =
paper
writings for these types of notices.<a style=3D'mso-footnote-id:ftn17'
href=3D"#_ftn17" name=3D"_ftnref17" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[17]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign specifically excludes the =
following
consumer notices from the federal rule allowing electronic records to =
replace
writing requirements:<a style=3D'mso-footnote-id:ftn18' href=3D"#_ftn18"
name=3D"_ftnref18" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[18]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><![endif]>Utility termination and
shut offs<o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">Default, acceleration,
repossession, foreclosure or eviction, or a right to cure, under a =
rental
agreement or a mortgage on a principal residence</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">Cancellation or
termination of health insurance or benefits, and of life insurance =
benefits
(except annuities)&nbsp;</font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">Product recall or =
material
failure of a product that risks endangering health and safety.<a
style=3D'mso-footnote-id:ftn19' href=3D"#_ftn19" name=3D"_ftnref19" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[19]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">UETA has =
no exceptions for
any consumer notices.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent:.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3"><b>E.<span
style=3D"mso-spacerun: yes">=A0</span><span style=3D'mso-tab-count:1'> =
</span>E-Sign's
Consumer Protections May Be Partially Eliminated by Federal Agency =
Action.</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

The =
consumer protections
provided in E-Sign may prove to be ephemeral -- if opponents to them
successfully convince federal agencies to eliminate them. There are a =
variety
of ways this might take place:<o:p></o:p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]>E-Sign's section 104(d)
allows a federal regulatory agency to &quot;exempt without condition a
specified category or type of record from the requirements relating to =
consent
in section 101(c) if such exemption is necessary to eliminate a =
substantial
burden on electronic commerce and will not increase the material risk of =
harm
to consumers.&quot;<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">The federal exemptions
listed in section 103(b)<span style=3D"mso-spacerun: yes">=A0 </span>are =
to be
studied by the Secretary of Commerce, through the Assistant Secretary =
for
Communication and Information, after three years, and the Secretary is =
to
recommend whether the exemptions remain necessary.<a =
style=3D'mso-footnote-id:
ftn20' href=3D"#_ftn20" name=3D"_ftnref20" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[20]<![endif]></span></sup></span></a>
Also, any federal agency can -- after notice and opportunity for public =
comment
-- find<span style=3D"mso-spacerun: yes">=A0 </span>that one or more of =
these
exemptions &quot;are no longer necessary for the protection of =
consumers&quot;
and can then omit it from the list.<a style=3D'mso-footnote-id:ftn21'
href=3D"#_ftn21" name=3D"_ftnref21" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[21]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3">Finally, the federal
requirement that the consent be given or confirmed electronically is to =
be
studied by the secretary of Commerce and the Federal Trade Commission =
after 12
months, with a report on benefits and burdens of the requirement.<a
style=3D'mso-footnote-id:ftn22' href=3D"#_ftn22" name=3D"_ftnref22" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[22]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>II.<span
style=3D"mso-spacerun: yes">=A0 </span><span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Why
UETA Alone Is Bad for Consumers</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

E-Sign=92s significant consumer
protections on consumer consent, [(101(c))], ability to retain =
electronic
records [101(d)], document integrity [(101(e))] and exclusion of certain
essential consumer notices [103(b)(2)] should apply as baseline =
requirements
for all written notices that are to be delivered to consumers
electronically.=A0 However, =
E-Sign allows
states to =93modify, limit or supersede=94 part of E-Sign by enacting =
the uniform
version of UETA. Consequently, it is essential to understand the dangers =
to
consumers if the uniform version of UETA is the prevailing law.<a
style=3D'mso-footnote-id:ftn23' href=3D"#_ftn23" name=3D"_ftnref23" =
title=3D""><![if =
!supportFootnotes]>[23]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">UETA was =
written as a rule
for facilitating voluntary electronic transactions.<span =
style=3D"mso-spacerun:
yes">=A0 </span>In their desire to facilitate good transactions, =
UETA=92s drafters
unintentionally opened the door to authorize some new unsavory =
practices.<span
style=3D"mso-spacerun: yes">=A0 </span>Here are some examples of why =
UETA should
not be permitted to simply displace E-Sign.<o:p></o:p></font></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

A.
UETA Permits Paper
Agreement to Receive Future Notices =
Electronically<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

</div>

<div class=3DSection9 style=3D"width: 652; height: 1481">

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Under =
UETA, a consumer who
does not own a computer could sign a piece of paper in a =
person-to-person
transaction and later find that all notices, disclosures, and records =
relating
to that transaction are to be sent electronically to an email address =
set up
for the consumer by the salesperson.<a style=3D'mso-footnote-id:ftn24'
href=3D"#_ftn24" name=3D"_ftnref24" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[24]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>UETA=92s proponents respond that =
such conduct
would violate the basic contractual obligation of good faith and fair =
dealing,
and perhaps also be unconscionable.<span style=3D"mso-spacerun: yes">=A0
</span>Consumer advocates believe that clear standards provide better
deterrence than relying only upon the standards of good faith and
unconscionability.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Over two =
thirds of this
nation's households are not yet online, and the percentages of elderly =
and poor
who do not own computers are much higher,<a =
style=3D'mso-footnote-id:ftn25'
href=3D"#_ftn25" name=3D"_ftnref25" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[25]<![endif]></span></sup></span></a>
yet UETA would allow crucial notices which now are required to be =
physically
handed to these consumers to be emailed instead.<span =
style=3D"mso-spacerun:
yes">=A0 </span>E-Sign, at least, does not permit paper form agreements =
to be used
as the sole method for consumers without computer skills or equipment to =
agree
to electronic notices.<span style=3D"mso-spacerun: yes">=A0 =
</span>E-Sign prohibits
this by requiring that the consumer's consent must be either given or =
confirmed
electronically.<span style=3D"mso-spacerun: yes">=A0 </span>Mere paper =
consent to
receive future electronic notices is not sufficient to permit an =
electronic
notice to replace a legally required paper notice.<a =
style=3D'mso-footnote-id:
ftn26' href=3D"#_ftn26" name=3D"_ftnref26" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[26]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><font face=3D"Times New =
Roman" size=3D"3"><b>B.&nbsp;<span style=3D'mso-tab-count:1'>
</span>UETA Does Not Require That
Electronic Notices Can Be Opened and Read</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Most =
people have received
electronic transmissions that would not open.=A0
UETA would allow a consumer to mistakenly agree to receive =
documents
electronically even when the consumer cannot actually open and read the
documents. UETA gives a consumer no right to a paper copy of an =
important
document when the email won=92t open or when it is unreadable if it does
open.=A0 To assure that the =
consumer
actually has access to the necessary hardware and software to access =
these
documents, the consumer consent process should test and assure capacity =
to
receive electronic notices.=A0 =
E&#8209;Sign
addresses this issue by requiring that the initial consent both be =
electronic
and that it =93reasonably demonstrate=94 the ability to receive notices =
using the
consumer=92s existing technology.<o:p></o:p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal style=3D'tab-stops: -1.0in; text-indent: 0.5; =
margin-left: 0.5'><b><font face=3D"Times New Roman" =
size=3D"3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n=
bsp;
C.&nbsp; UETA
Leaves Open a Loophole for Face-to-Face Transactions Where the =
Salesperson Brings Computer Equipment to the Consumer for One-time =
Use</font></b></p>

<p class=3DMsoNormal style=3D'tab-stops: -1.0in; text-indent: 0.5; =
margin-left: 0.5'>&nbsp;</p>

Imagine an =
elderly consumer
sitting at home who is visited by an aluminum siding salesperson.=A0 The salesperson talks the =
consumer into
agreeing to an expensive contract for new siding.=A0 The documents state that the consumer =93agrees=94 that =
all the
information relating to the transaction will provided =
electronically.=A0 The salesperson takes out a =
laptop, connects
to the Internet through the consumer's telephone line, and asks the =
consumer to
type her name on the computer as he scrolls through the FTC Notice for =
Door to
Door Sales about the consumer's right to cancel, the sales contract, the
mortgage on the house, the Truth in Lending disclosures, and other =
required
legal notices.=A0 When the =
salesperson
departs, the consumer is left with no paper copies of these key =
documents.=A0 UETA permits this process.=A0 E-Sign implicitly prohibits this =
(although
this prohibition could be stronger) by requiring electronic consent or
confirmation of consent. A consumer who is in a face-to-face transaction =
should
not be able to consent electronically by using the computer equipment =
belonging
to the seller. That consent does not meet the requirements of E-Sign's =
section
101(c) because it does not &quot;reasonably demonstrate that the =
consumer can
access information in the electronic form.&quot; As Senator McCain said,
=93[t]his should mean that the consumer must initiate or respond to an =
email to
consent or confirm consent.<a style=3D'mso-footnote-id:ftn27' =
href=3D"#_ftn27"
name=3D"_ftnref27" title=3D""><![if =
!supportFootnotes]>[27]<![endif]></a>
Congressional statements by the sponsors of this legislation indicate =
that the
only rational reading of E-Sign's strict requirements for consent would
prohibit this activity.<a style=3D'mso-footnote-id:ftn28' =
href=3D"#_ftn28"
name=3D"_ftnref28" title=3D""><![if =
!supportFootnotes]>[28]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

To deal =
clearly with this
issue in state law, North Carolina recently enacted a flat rule that =
whenever a
consumer conducts a &quot;transaction on electronic equipment provided =
by or
through the seller, the consumer [must] . .=A0
.be given a written copy of the contract which is not in =
electronic
form.&quot;<a style=3D'mso-footnote-id:ftn29' href=3D"#_ftn29" =
name=3D"_ftnref29"
title=3D""><![if =
!supportFootnotes]>[29]<![endif]></a>=A0 This would prevent many =
unscrupulous
business practices from flourishing as a result of the new electronic =
enabling
laws.=A0 The North Carolina =
rule should
ensure that the electronic transaction is not used as a =
subterfuge to
avoid actually providing the consumer with information that the consumer =
needs
and is legally entitled to receive.<a style=3D'mso-footnote-id:ftn30'
href=3D"#_ftn30" name=3D"_ftnref30" title=3D""><![if =
!supportFootnotes]>[30]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 1'><font face=3D"Times New Roman" =
size=3D"3"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;
D.&nbsp;<span style=3D'mso-tab-count:1'>&nbsp;</span>Both
UETA and E-Sign Overlook That Email Can Be Less Certain of Delivery than
Regular Mail, but E-Sign=92s Consent Rules Partially Address this =
Problem</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Both UETA =
and E-Sign fail to
fully address the significant differences between the ease and lack of =
cost
involved in receiving mail through the U.S. Postal Service, and the
complexities, ongoing expense, and uncertainties involved with receiving =
email.=A0 The expense includes access to a =
working
computer and access to the Internet.=A0
The uncertainties include Internet service provider failure, use =
of a
stale email address and junk mail filtering programs that may =
incorrectly
filter out the message.=A0 =
Until the receipt
of email reaches the same level of certainty as the U.S. mail, some care =
must
be taken to assure that the consumer has at least the same expectation =
of
actual receipt of email as for U.S. mail.=A0
<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Neither =
UETA nor E-Sign fully
recognizes the higher degree of delivery uncertainty with email, but =
E-Sign
takes three important partial steps.<span style=3D"mso-spacerun: =
yes">=A0
</span>First, E-Sign requires that the initial consent be given or =
confirmed
electronically, so that any consumer consenting to receive legally =
required
notices under E-Sign must have and demonstrate the capacity to send =
email or to
go online at the time of the initial consent.<span =
style=3D"mso-spacerun: yes">=A0
</span>Second, E-Sign recognizes that some types of consumer notices are =
so
important that they should be provided on paper.<a =
style=3D'mso-footnote-id:ftn31'
href=3D"#_ftn31" name=3D"_ftnref31" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[31]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>Third, E-Sign permits additional =
state law
provisions to address delivery issues.<span style=3D"mso-spacerun: =
yes">=A0
</span>Recommended language for a state companion act is found in Part =
IV.</font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal>&nbsp;&nbsp;&nbsp;<font face=3D"Times New Roman" =
size=3D"3">&nbsp;&nbsp;&nbsp;&nbsp;
<b>E.&nbsp;<span style=3D'mso-tab-count:1'>
</span>UETA Does Not Fully Assure
Unchanged Copies for Later Consumer Use</b><span
style=3D"mso-spacerun: yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">UETA does =
not fully account
for the different inherent characteristics between paper documents and
electronic records.<span style=3D"mso-spacerun: yes">=A0 </span>Unlike =
paper
records, electronic records can be accidentally altered when one =
intended only
to view the contents.<span style=3D"mso-spacerun: yes">=A0 </span>For =
electronic
records to provide the same degree of certainty as paper records, the
electronic records must be protected from both inadvertent and =
intentional
changes, that is, they must be maintained in a =93read-only=94 =
form.<span
style=3D"mso-spacerun: yes">=A0 </span>Under UETA, a person could =
inadvertently
change a single byte on an electronic document memorializing an =
important
transaction and then find that the electronic record is useless if a =
dispute
arises, because the record is no longer exactly as it was when it was =
signed by
the parties.<span style=3D"mso-spacerun: yes">=A0 </span>UETA requires =
that an electronic
record substituting for a legal notice be capable of retention, but it =
does not
say that the form of retention must permit accurate later =
reproduction.<a
style=3D'mso-footnote-id:ftn32' href=3D"#_ftn32" name=3D"_ftnref32" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[32]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign adds a requirement that =
the document
be provided in a form in which it can be accurately reproduced by all =
parties
who are entitled to a copy.<a style=3D'mso-footnote-id:ftn33' =
href=3D"#_ftn33"
name=3D"_ftnref33" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[33]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign also contains a provision =
permitting
a court to deny enforcement of an electronic record that was not =
properly
retained.<a style=3D'mso-footnote-id:ftn34' href=3D"#_ftn34" =
name=3D"_ftnref34"
title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:
footnote'><![if =
!supportFootnotes]>[34]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

F.
Other Provisions.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

UETA's =
proponents contend
that UETA's section 10 includes a new consumer protection in the form of =
a
right to cancel a transaction when a record was sent in error and all =
benefit
and value is returned.=A0 =
However, this
error correction provision explicitly does not apply if the original
transaction included an &quot;opportunity for prevention or =
correction&quot; of
the error, such as any confirmation screen.=A0
Unless interpreted by a court to require an effective, =
well-designed
prevention opportunity that draws an active response from the consumer, =
rather
than just any passive order confirmation screen, any benefits of the =
error
correction provision of UETA section 10 are likely to be largely =
illusory. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b>III. =
<span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span>Relationship of E-Sign and UETA</b><o:p></o:p></font></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>A.&nbsp;<span style=3D"mso-tab-count: 1"> =
</span>Preemption </b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

E-Sign is =
a messy concoction
of provisions that 1) partially preempt state law, 2) allow states to =
regain
control over their own electronic rules subject to some limitations, and =
3)
apply a federal rule to state transactions unless a state acts in a very =
specific
way. The mission is to thread our way through the complexities of this =
statute
and decipher how it relates to existing and future state laws on =
electronic
signatures and electronic records. Several sections have very different
standards:<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><span
style=3D'font:7.0pt "Times New Roman"'> </span><![endif]><u>Section 101 =
- General
Rule of Validity.</u><span
style=3D"mso-spacerun: yes">=A0 </span>Section 101<span =
style=3D"mso-spacerun: yes">=A0
</span>applies to any rule of law regarding the legality of a signature =
or a
writing requirement. To the extent that state rules are different from =
any of
the rules in section 101 --<span style=3D"mso-spacerun: yes">=A0=A0 =
</span>either the
general rule in subsection (a) or any of the limitations on that general =
rule
in the remaining following subsections (including the consumer =
protection
provisions in (c), (d) and (e)) -- the initial rule is that those =
<i>differences
are preempted. </i><span style=3D"mso-spacerun: yes">=A0</span>Thus, if =
nothing
else happens in a state, the general rules for electronic records and
signatures established section 101 are the prevailing law.<br>
    </font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><span
style=3D'font-style: normal; font-variant: normal; font-weight: =
normal'>&nbsp;</span><![endif]><u>Section 102 -
Exemption to Preemption.</u><span
style=3D"mso-spacerun: yes">=A0 </span>This section is somewhat misnamed =
because it
achieves several different purposes. First, it allows states to =
<i>partially</i>
avoid the preemptive effects of E-Sign=92s section 101, so long as the =
states
follow the rules set out in section 102. This permission to the states =
is only
partial because a state's attempt to avoid the preemptive effect of =
E-Sign=92s
section 101 is limited by the two tests established in section 102. =
<o:p></o:p></font></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

One
distinction that arises from a close analysis of the relationship of =
section
102 to the rest of E-Sign is the difference between a state's =
ability to
avoid preemption, and the question of whether the particular =
requirements in
E-Sign can be displaced by state action.=A0 In other words, the difference between a state being =
able to
maintain the effectiveness of its own laws, and acting to intentionally =
nullify
the application of the particular requirements of E-Sign as to that =
state.=A0 This issue is particularly =
important to the
question of whether the consumer protections=A0
in section 101(c), (d) and (e) apply to consumer transactions in =
a state
when there has also been any state activity. Congressional intent =
indicates
that a state that intends to displace the federal consumer protections =
must do
so deliberately, even if it otherwise acts to avoid the =
preemptive
effects of E-Sign=92s general rule, which authorizes substitution of =
writings and
signatures with electronic records and electronic signatures.<a
style=3D'mso-footnote-id:ftn35' href=3D"#_ftn35" name=3D"_ftnref35" =
title=3D""><![if =
!supportFootnotes]>[35]<![endif]></a>
Similarly, no preexisting state law can be used to displace the =
specific
requirements of E-Sign, yet parts of that preexisting state law may not =
be
preempted under section 101. (See discussion in Part C, Option 1,
below.)<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><u>Section 103 -
Specific Exceptions.</u> This section has
two impacts, one overt and one implicit. The protections in this section =
are
cast as an exception to the preemptive effects of section 101 (&quot;The
provisions of section 101 shall not apply to . . . .&quot;). =
Unfortunately, the
section 103 exemptions from electronic delivery affect only the =
applicability
of the federal law on the subject, they do not mandate that state laws =
observe
those exemptions; thus states remain free to recognize electronic =
records for
the enumerated communications.<span style=3D"mso-spacerun: yes">=A0 =
</span>(<i>See</i>
discussion in Parts III C and III D below for more on this.)<span
style=3D"mso-spacerun: yes">=A0 </span>In states where valid state laws =
allow these
notices to be electronic and no state law requires paper, E-Sign=92s =
exemptions
do not apply. <o:p></o:p></font></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

The
other effect of the exemptions listed in section 103 is to limit the =
exemptions
to UETA that a state may enact. Section 3(b)(4) of the Uniform version =
of UETA
anticipates that states will exempt certain transactions from the =
effects of
UETA. However, E-Sign specifically limits a state's ability to =
displace
E-Sign with such exceptions in section 102(a)(1), which reaffirms that =
to
&quot;the extent [that] exception is inconsistent with this title or =
title II .
. .=94 those UETA exceptions are preempted.=A0
As the only exemptions listed in E-Sign are listed in section =
103,<a
style=3D'mso-footnote-id:ftn36' href=3D"#_ftn36" name=3D"_ftnref36" =
title=3D""><![if =
!supportFootnotes]>[36]<![endif]></a>
those exemptions provide the test against which state exemptions from =
UETA
should be measured.<a style=3D'mso-footnote-id:ftn37' href=3D"#_ftn37"
name=3D"_ftnref37" title=3D""><![if =
!supportFootnotes]>[37]<![endif]></a>
<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;</font></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><u>Section 104 -
Applicability to Federal and State Governments.</u> This section =
includes limitations on the authority
that states (and the federal agencies) otherwise have to adopt =
interpretive
guidelines on electronic records under E-Sign. It specifically preempts =
states
from adopting regulations which are inconsistent with E-Sign, or that do =
not
meet the listed requirements in section 104(b)(2).<a =
style=3D'mso-footnote-id:
ftn38' href=3D"#_ftn38" name=3D"_ftnref38" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[38]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>Federal and state agencies are =
also
prohibited from reimposing any requirement that a record be in a =
tangible
printed form, except in certain narrow circumstances. However, section =
104
limits state action only so long as section 101 applies, because section =
104
anticipates rulemaking <i>pursuant to section 101.</i> If a state =
escapes the
preemptive effects of section 101, then section 104 should not limit a =
state=92s
rulemaking authority with regard to its own laws.<a =
style=3D'mso-footnote-id:
ftn39' href=3D"#_ftn39" name=3D"_ftnref39" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[39]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign's limitations on a state's =
rulemaking
ability provide one of the best reasons for states to adopt the uniform =
version
of UETA, as UETA's sections 12(f) and (g) allow states considerable =
latitude in
these areas,<i> however, UETA should not be adopted unless the state =
also
adopts a companion act providing for consumer protections.</i><a
style=3D'mso-footnote-id:ftn40' href=3D"#_ftn40" name=3D"_ftnref40" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[40]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></li>
</ul>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3"><b>B.&nbsp;<span style=3D'mso-tab-count:1'> =
</span>Displacement </b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

</div>

<div class=3DSection14 style=3D"width: 650; height: 1440">

E-Sign=92s section 102 permits
states to displace part of E-Sign. A state can displace part of =
E-Sign, that
is, avoid the preemptive effect of section 101, if it meets one of the =
two
tests established in section 102. As such it appears to operate as =
an
optional =93reverse preemption=94 provision.=A0
The only part of E-Sign that states may modify or supersede, that =
is,
displace, is section 101 (though, as noted above, displacing section 101 =
also
displaces those provisions that derive directly from section 101, such =
as the
limits on state action set forth in section 104).=A0 Section 101(a) contains the general rule authorizing =
substitution
of writings and signatures with electronic records and electronic =
signatures,
and sections 101(c), (d), and (e), and 103(b) contain the key consumer
protections.=A0 A sensible =
reading of
section 102(a)'s authorization for a state to =93modify, limit, or =
supersede=94
section 101 would be that states are permitted to alter section =
101(a)=92s
general rule authorizing the use of electronic records and signatures by
imposing either UETA or other allowable state law, leaving E-Sign=92s =
rules
for consumer consent still applicable. =A0However, another reading of section 102 is that it =
permits states
to modify or displace all of section 101, including the consumer consent
requirements of section 101(c) and the related consumer protections of =
sections
101(d) and (e).=A0 The effect =
on the
exemptions to E-Sign in section 103(b) is discussed in Part III D, =
below.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">This =
section discusses the
options available to states in light of E-Sign.<span =
style=3D"mso-spacerun:
yes">=A0 </span>If a state that has not already adopted UETA proceeds to =
do so,
it should include the language recommended in Part IV in a companion =
law.<span
style=3D"mso-spacerun: yes">=A0 </span>This companion law should be =
enacted at the
same time the state adopts UETA, and in the same bill.<span
style=3D"mso-spacerun: yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent:4.5in'><font face=3D"Times New =
Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

If a =
state has already
adopted UETA, we recommend that the state either enact a new law =
establishing
consumer protections or add a section to its UETA clearly establishing =
or
deferring to E-Sign=92s consumer protections. Part IV offers text for =
such state
legislation.<o:p></o:p>

<p class=3DMsoNormal style=3D'text-indent:1.0in'><b><font face=3D"Times =
New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">E-Sign =
contemplates two kinds
of state legislation on electronic notices and electronic =
signatures.<span
style=3D"mso-spacerun: yes">=A0 </span>These two kinds of state statutes =
are: 1)
UETA, and 2) another law which &quot;specifies the alternative =
procedures or
requirements for the use or acceptance (or both) of electronic records =
or electronic
signatures.&quot;<a style=3D'mso-footnote-id:ftn41' href=3D"#_ftn41"
name=3D"_ftnref41" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[41]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>Nothing prohibits a state from =
enacting both
UETA and a companion consumer protection law, and indeed the legislative
history suggests that this was contemplated.<a =
style=3D'mso-footnote-id:ftn42'
href=3D"#_ftn42" name=3D"_ftnref42" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[42]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>The companion law =
must:<o:p></o:p></font></p>

<ul>
  <li>
    <p class=3D"MsoNormal"><font face=3D"Times New Roman" =
size=3D"3"><![endif]>Be consistent with
E-Sign&nbsp;</font></p>
  </li>
  <li>
    <p class=3D"MsoNormal"><font face=3D"Times New Roman" =
size=3D"3">Specify alternative
procedures or requirements for the use or acceptance of electronics =
records and
signatures&nbsp;</font></p>
  </li>
  <li>
    <p class=3D"MsoNormal"><font face=3D"Times New Roman" size=3D"3">Not =
favor one technology
over another, and</font></p>
  </li>
  <li>
    <p class=3D"MsoNormal"><font face=3D"Times New Roman" =
size=3D"3"><![endif]>Make reference to the
federal Act if it is adopted after E-Sign.<o:p></o:p></font></p>
  </li>
</ul>
<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>States are being asked by
NCCUSL commissioners to adopt UETA. Part B discusses five choices for
states.<span style=3D"mso-spacerun: yes">=A0 </span>Options One, Two and =
Three are
recommended.<span style=3D"mso-spacerun: yes">=A0 </span>Option One is =
UETA with a companion
consumer protection statute; Option Two is a consumer protection statute
without UETA; and Option Three, a minimalist approach, calls for UETA =
with an
additional provision stating that the consumer protections in E-Sign are
preserved. Option Four - no UETA at all, is perfectly acceptable, but =
given the
strong push made by NCCUSL, may not prevail.<span style=3D"mso-spacerun: =
yes">=A0
</span>Option Five, UETA alone, is not recommended.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Part IV provides statutory language to implement these
recommended options.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

States =
that adopted some
version of UETA prior to the passage of E-Sign have different issues to
consider, and may also wish to enact a companion statute. Part III D, =
below,
discusses strategies in these states.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" =
size=3D"3">C.<span
style=3D"mso-spacerun: yes">=A0 </span>Choices
for States that Have Not Adopted UETA<o:p></o:p></font></b></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

E-Sign =
section 102(a)(1)
creates uncertainty about what consumer protections apply in a state =
that
enacts the uniform version of UETA in the future.=A0 A key question is the scope of the displacement effected =
by the
adoption of UETA.=A0 It is not =
clear
whether passage of UETA displaces just E-Sign=92s validation of =
electronic signatures
and contracts [found primarily in section 101(a)] or displaces that =
provision
plus its consumer protections [found in section 101(c)(d) and(e)]. =
E-Sign can
be read either way.<a style=3D'mso-footnote-id:ftn43' href=3D"#_ftn43"
name=3D"_ftnref43" title=3D""><![if =
!supportFootnotes]>[43]<![endif]></a>
The displacement rule could have been intended to reach only the general =
rule
of validity in section 101(a), even if more than section 101(a) can be =
affected
by state law. Even if the provision is read broadly, it still does not =
state
that passage of UETA automatically displaces E-Sign, only that a state =
may
use it to do so. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">A =
reasonable interpretation
of the federal law's optional displacement provision, also referred to =
here as
a =93reverse preemption=94 provision, is that the consumer protection =
provisions in
the federal E-Sign continue to apply in a state which has passed UETA =
unless
the state law enacting UETA states an express intent to displace =
E-Sign=92s
consumer protection provisions.<span style=3D"mso-spacerun: yes">=A0 =
</span>This
interpretation is supported by the legislative history: =
<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Of =
course, the rules for consumer consent and accuracy
and retainability of electronic records under this Act shall apply in =
all
states that pass the Uniform Electronic Transactions Act or another law =
on
electronic records and signatures in the future, unless the state =
affirmatively
and expressly displaces the requirements of federal law on these =
points.<span
style=3D"mso-spacerun: yes">=A0 </span>A state which passed UETA before =
the passage
of this Act could not have intended to displace these federal law
requirements.<span style=3D"mso-spacerun: yes">=A0 </span>These states =
would have
to pass another law to supersede or displace the requirements of section
101.<span style=3D"mso-spacerun: yes">=A0 </span>In a state which enacts =
UETA after
passage of this Act, without expressly limiting the consent, integrity =
and
retainability subsections of 101, those requirements of this Act would =
remain
in effects.<span style=3D"mso-spacerun: yes">=A0 </span>The general =
provisions of
UETA, such as the requirement for agreement to receive electronic =
records in
UETA are not inconsistent with and do not displace the more specific
requirements of section 101, such as the requirement for a consumer's =
consent
and disclosure in section 101(c).<b>44</b><a =
style=3D'mso-footnote-id:ftn44'
href=3D"#_ftn44" name=3D"_ftnref44" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[44]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3">Displacement of federal
consumer protections is a rare event, and one that should not simply be =
implied
in the absence of a clear legislative statement of intent to do so.<span
style=3D"mso-spacerun: yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" =
size=3D"3">Nonetheless, UETA=92s
proponents argue that any uniform enactment of UETA eliminates the =
application
of the consumer protections in E-Sign.<a style=3D'mso-footnote-id:ftn45'
href=3D"#_ftn45" name=3D"_ftnref45" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[45]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span><b>While this seems an unlikely =
result when
there has been no statement of an intent to displace those protections =
in
addition to E-Sign=92s provisions regarding the use of electronic =
records and
signatures, the safest course for any state enacting UETA is either =
to:<o:p></o:p></b></font></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><b><font face=3D"Times New Roman" =
size=3D"3">1)&nbsp;<span style=3D'mso-tab-count:1'>&nbsp;</span>reenact
E-Sign's consumer protections into state law in a statute which is a =
companion
to UETA and to E-Sign, or <o:p></o:p></font></b></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: =
0.5"><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

2)&nbsp;&nbsp;expressly
state that enactment of UETA is not intended to modify, limit or =
supersede the
consumer protections of E-Sign sections 101(c), (d) and (e); and to copy =
into
state law the exemptions in section 103(b). =A0=A0<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3">Option =
One =96<span
style=3D"mso-spacerun: yes">=A0 </span>UETA with a Companion Consumer =
Protection
Law on Electronic Notices<o:p></o:p></font></b></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></b></p>

The =
preferred approach is for
a state to enact both UETA and a companion law of the type permitted =
under
section 102(a)(2) of E-Sign.=A0 =
This route
is best for a number of reasons. First, it would allow the state to =
address
issues which are not included in E-Sign.=A0
Second, this approach ensures that a state can continue to apply =
its own
rules for record retention for evidentiary, audit or regulatory =
purposes.<a
style=3D'mso-footnote-id:ftn46' href=3D"#_ftn46" name=3D"_ftnref46" =
title=3D""><![if =
!supportFootnotes]>[46]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><span =
style=3D"mso-spacerun:
yes">=A0</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">This =
subsection discusses the
electronic notice<a style=3D'mso-footnote-id:ftn47' href=3D"#_ftn47"
name=3D"_ftnref47" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[47]<![endif]></span></sup></span></a>
provisions of such a law.<span style=3D"mso-spacerun: yes">=A0 =
</span>The state
companion statute should reenact certain parts of E-Sign into state law =
and add
other provisions.<span style=3D"mso-spacerun: yes">=A0 </span>The E-Sign =
consumer
protections that should be reenacted into state law are the provisions =
relating
to:<a style=3D'mso-footnote-id:ftn48' href=3D"#_ftn48" =
name=3D"_ftnref48" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[48]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span><span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">1)<span
style=3D'mso-tab-count:1'> </span>Consumer electronic consent to
engage in electronic transactions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
(<i>Recommendation # 1)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">2)<span
style=3D'mso-tab-count:1'> </span>Document retention and integrity
(<i>Recommendation # 2)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3">3)
Exclusion
of recordings of oral communications from the definition of an =
electronic
record (<i>Recommendation # 3)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">4)<span
style=3D'mso-tab-count:1'> </span>Exemptions of certain notices
from electronic records ((<i>Recommendation # 4). =
</i><o:p></o:p></font></p>

</div>

<div class=3DSection17 style=3D"width: 590; height: 6325">

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: =
0.5'>&nbsp;</p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">5)<span
style=3D'mso-tab-count:1'> </span>A definition of consumer
transactions (<i>Recommendation #5)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Adding =
all of these items to
the companion act is essential to ensure that a post E-Sign UETA will =
not undo
what E-Sign has just done to protect consumers.<span =
style=3D"mso-spacerun:
yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">The =
companion act should also
address issues left to the states for further legislation under E-Sign =
section
102(a)(2), and not addressed by UETA.<span style=3D"mso-spacerun: =
yes">=A0
</span>Those issues include:<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3">6)
A
general no-waiver rule for the state=92s electronic consumer protections =
(<i>Recommendation
# 6).<o:p></o:p></i></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3">7)
A
mutuality rule so that consumers can effectively respond to notices =
which they
receive electronically <i>Recommendation #</i> 7).<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">8)
The time at which an electronic
record is considered delivered (<i>Recommendation # =
8)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><font =
face=3D"Times New Roman" size=3D"3">9)&nbsp;<span
style=3D'mso-tab-count:1'> </span>The time at which an electronic
record becomes effective (<i>Recommendation # =
9)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3">10)
The
effect of a record that cannot be, or is not, opened or read when =
received (<i>Recommendation
# 10</i>).<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" =
size=3D"3">11)&nbsp;<span style=3D'mso-tab-count:1'>
</span>Preservation
of hand delivery of documents in face-to-face transactions =
(<i>Recommendation #
11)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" =
size=3D"3">12)&nbsp;<span style=3D'mso-tab-count:1'>
</span>Designation
of the place where an electronic contract with a consumer is formed =
(<i>Recommendation
# 12)</i>. <o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" =
size=3D"3">13)&nbsp;<span style=3D'mso-tab-count:1'>
</span>Protections
in connection with the transfer of electronic loan notes =
(<i>Recommendation #
13)</i>. <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Finally, =
any state law
addressing electronic records and signatures adopted after E-Sign should =
also:<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3">14)
Establish
that state law supplements, rather than displaces, the federal E-Sign =
law (<i>Recommendation
# 14)</i>.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><b><font face=3D"Times New Roman" size=3D"3">Option =
Two =96<span
style=3D"mso-spacerun: yes">=A0 </span>Companion Consumer Protection Law =
Permitted
by E-Sign Without UETA<o:p></o:p></font></b></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Another =
choice is for a state
to enact the recommended provisions as a companion to E-Sign, without =
also
enacting UETA.=A0 The benefits =
of this
approach are the same as those discussed in the =93UETA plus =
companion=94 approach,
and the enacting language would be very similar to the language =
recommended for
that approach. See Part IV.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b>Option =
Three =96 UETA with a
=93No Displacement=94 Statement</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">Despite =
the poor case for a
need for UETA after E-Sign, UETA=92s author, the National Conference of
Commissioners on Uniform State Laws, is expected to continue to seek =
state by
state enactment of UETA.<span style=3D"mso-spacerun: yes">=A0 </span>At =
a minimum,
any future UETA enactment should include plain language =
stating:<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:.5in'><font =
face=3D"Times New Roman" size=3D"3">This act is not intended to modify, =
limit, or
supersede the requirements of section 101(c), (d), or (e), or to =
authorize the
electronic delivery of any notice of the type described in section =
103(b), of
the federal Electronic Signatures in Global and National Commerce =
Act.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Without =
this language, there
might be litigation over whether or not a future UETA was intended to =
displace
E-Sign, including E-Sign's consumer protections.=A0 There is also a risk that E&#8209;Sign=92s exemptions =
could be
undone by UETA, so that even essential notices such as utility shutoff =
notices
could be sent electronically to someone who might be unable to open and =
read
them.=A0 Without this =93no =
displacement=94
language as part of any UETA bill, a state=92s consumers are better off =
without
UETA. =A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0 =
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0=A0=A0=A0=A0
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0=A0=A0=A0=A0 <o:p></o:p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b>Option =
Four =96<span
style=3D"mso-spacerun: yes">=A0 </span>No UETA</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

States =
may choose not to
enact UETA, and simply rely on E-Sign to both authorize electronic =
notices and
to provide accompanying consumer protections.<a =
style=3D'mso-footnote-id:ftn49'
href=3D"#_ftn49" name=3D"_ftnref49" title=3D""><![if =
!supportFootnotes]>[49]<![endif]></a>=A0 This approach gives consumers the =
protection
of the federal consent and related requirements, and leaves the federal
exemptions for key consumer notices (such as utility shutoff, =
foreclosure and
life and health insurance cancellation) in place. It also provides the =
better
rules for document integrity and retention contained in E-Sign, and =
avoids the
UETA loophole allowing a recording of a phone call to satisfy a =
requirement for
a writing.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

At the =
same time, this
approach leaves a state=92s consumers open to a possible future =
watering-down of
federal consumer protection standards.=A0
The federal exemptions are to be studied by the Secretary of =
Commerce,
through the Assistant Secretary for Communication and Information, after =
three
years. The Secretary is to recommend whether the exemptions remain
necessary.=A0 The federal =
requirement that
the consent be given or confirmed electronically is to be studied by the
secretary of Commerce and the Federal Trade Commission after 12 months, =
with a
report on benefits and burdens of the requirement.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Despite =
this concern,
however, the =93no UETA=94 approach is a clean and simple solution, and =
one that
consumer protection policymakers and advocates should seriously =
consider. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b>Option =
Five<span
style=3D"mso-spacerun: yes">=A0 </span>=96 UETA Alone =96 Not =
Recommended</b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

UETA =
alone is not
recommended, for the reasons discussed in Part II. Because of the risk =
that a
court might hold that UETA displaces all of E-Sign section 101, =
including its
consumer protections, consumers are better off without UETA =
alone.<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]><b>D.&nbsp;<span style=3D"mso-tab-count: 1">
</span>Effect of Earlier-Enacted
UETAs </b><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3">There are =
two potential
consequences in a state that passed UETA =96 or another law legalizing =
electronic
signatures and electronic records<a style=3D'mso-footnote-id:ftn50' =
href=3D"#_ftn50"
name=3D"_ftnref50" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[50]<![endif]></span></sup></span></a>
=96<span style=3D"mso-spacerun: yes">=A0 </span>before E-Sign was =
enacted:<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><font face=3D"Times New Roman" =
size=3D"3">1)&nbsp;&nbsp;&nbsp;&nbsp;
E-Sign
completely preempts and displaces the state UETA, leaving E-Sign the =
only
effective law on the issues addressed in E-Sign and =
UETA.<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DLevel1 style=3D'tab-stops: -1.0in list 1.0in; text-indent: =
0.5; margin-left: 0.5'><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><span
style=3D'mso-ansi-font-size:12.0pt'>2)<span style=3D'font:7.0pt "Times =
New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span>E-Sign preempts
and displaces UETA on those issues that are addressed in E-Sign, but =
leaves
other parts of the state law intact if they meet the standards of =
general
preemption analysis.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Some may argue that
a third result might be possible: that E-Sign does not apply in the =
state
because a previously enacted UETA =96 or the other state law =96 meets =
one of the
tests in E-Sign section 102(a)(1) or (2).=A0
Given the clear Congressional intent, as expressed in E-Sign as =
well as
in the accompanying legislative history, this argument should not =
succeed. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The issue is
especially complex because it is entirely possible for both UETA =
and
E-Sign to be applicable in a state. The question then becomes, what =
happens to
a non-uniform previously passed UETA?

<p class=3DMsoNormal>&nbsp;</p>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
1. Pre-E-Sign
State Law Does Not Displace E-Sign<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

E-Sign should apply
in all states that had previously passed UETA =96 both uniform and =
non-uniform =96
and as well as any other law legalizing electronic records and =
electronic
signatures. This means that =96 at the least =96 on all issues that are =
addressed in
E-Sign, E-Sign is the prevailing law. For the purposes of consumer =
protection,
the provisions of E-Sign=92s section 101(c), (d) and (e) should apply in =
all
those states. The question of whether any part of the pre-E-Sign state =
law is
still in effect after E-Sign is addressed =
below.<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">E-Sign=92s legislative
history establishes that prior state statutes do not displace it.<span
style=3D"mso-spacerun: yes">=A0 </span>Statements by the bill sponsors =
and other
members closely involved with the passage of E-Sign bill indicate it was
Congress=92 intent that E-Sign could be displaced (in part) only by a =
post-E-Sign
state statute:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">A state which passed UETA before the passage
of this Act could not have intended to displace these federal law
requirements.<span style=3D"mso-spacerun: yes">=A0 </span>These states =
would have
to pass another law to supersede or displace the requirements of section =
101.<a
style=3D'mso-footnote-id:ftn51' href=3D"#_ftn51" name=3D"_ftnref51" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[51]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Speaking to a
related topic, Congressman Bliley, the original sponsor of the E-Sign =
bill in
the House,<a style=3D'mso-footnote-id:ftn52' href=3D"#_ftn52" =
name=3D"_ftnref52"
title=3D""><![if =
!supportFootnotes]>[52]<![endif]></a> and
the Chair of the Conference Committee on E-Sign, emphasized that prior =
passage
of a state law does not eliminate the application of E-Sign in a state. =
<o:p></o:p>

<p class=3DMsoNormal style=3D'text-indent:2.0in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

[A] State could not argue that section 101
does not preempt its statutes, regulations, or other rules of law =
because they
were enacted or adopted prior to the enactment of this Act. . . .<a
style=3D'mso-footnote-id:ftn53' href=3D"#_ftn53" name=3D"_ftnref53" =
title=3D""><![if =
!supportFootnotes]>[53]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Logic also supports
the conclusion that prior statutes do not displace E-Sign.<span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign and prior state UETAs can =
coexist
without either being displaced.<span style=3D"mso-spacerun: yes">=A0 =
</span>A
merchant dealing with a consumer can comply with both the general rules =
of UETA
and the more specific E-Sign consumer protections.<span =
style=3D"mso-spacerun:
yes">=A0 </span>In addition, it would be extremely odd for a UETA =
enacted before
E-Sign to displace the subsequent federal statute.<span =
style=3D"mso-spacerun:
yes">=A0 </span>If Congress had wanted prior uniform UETAs to displace =
E-Sign, it
could have made E-Sign applicable only in states lacking a uniform =
UETA.<span
style=3D"mso-spacerun: yes">=A0 </span>It did not do so.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Thus, a state may only displace E-Sign with legislation =
enacted
after E-Sign that meets one of the two tests set forth in section 102.<a
style=3D'mso-footnote-id:ftn54' href=3D"#_ftn54" name=3D"_ftnref54" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[54]<![endif]></span></sup></span></a>
<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" =
size=3D"3"><![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops: -1.0in'><font face=3D"Times New =
Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp; 2.<span style=3D"mso-spacerun: yes">=A0</span>Does E-Sign Preempt =
Prior UETAs?</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The honest answer is
=93maybe.=94<span style=3D"mso-spacerun: yes">=A0 </span>It depends on =
what is in those
statutes, whether they interfere with E-Sign, and the extent to which =
they
address issues left to the states by =
E-Sign.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Uniform
UETAs.=A0 E-Sign probably does not preempt =
preexisting
uniform UETAs. As the statute expressly allows them to be enacted after =
E-Sign,
they would seem to pass a general consistency test. With a preexisting =
uniform
UETA (or with a post E-Sign UETA that does not state an intent to =
displace
E-Sign), E-Sign=92s rules would simply apply as an overlay to UETA=92s =
more general
rules.=A0 For example, in a =
consumer
transaction, UETA requires general agreement to communicate =
electronically,
while E-Sign adds a requirement for a specific form of consent for =
legally
required notices to consumers.<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Non-Uniform
UETA.<span style=3D"mso-spacerun: yes">=A0 </span></span></b><span
style=3D'mso-ansi-font-size:12.0pt'>Again, Congressman Bliley provides =
us the
window to congressional intent:&nbsp;</span></font></p>

<p class=3DMsoNormal>&nbsp;</p>

It is intended that any State that enacts or
adopts UETA in its State to remove itself from Federal preemption =
pursuant to
subsection (a)(1) shall be required to enact or adopt UETA without =
amendment.
Any variation or derivation from the exact UETA document reported and
recommended for enactment by NCCUSL shall not qualify under subsection =
(a)(1).
Instead, such efforts and other efforts may or may not be eligible under =
subsection
(a)(2). Thus, a State that enacted a modified version of UETA would not =
be
preempted to the extent that the enactment or adoption by a State met =
the
conditions imposed in subsection (a)(2).<a =
style=3D'mso-footnote-id:ftn55'
href=3D"#_ftn55" name=3D"_ftnref55" title=3D""><![if =
!supportFootnotes]>[55]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">A non-uniform
version of UETA will not meet the requirements of the first test for
displacement, E-Sign=92s section 102(a)(1), that allows a state to =
displace
E-Sign with a statute that =93constitutes an enactment or adoption of =
the Uniform
Electronic Transactions Act as approved or recommended for enactment in =
all the
states by the National Conference of Commissioners on Uniform State Laws =
in
1999.=94<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

When a state
non-uniform UETA, passed prior to E-Sign=A0
is evaluated under the second test for displacement, E-Sign =
section
102(a)(2)(A), there are two possible outcomes.=A0
First, if the state law is not consistent with E-Sign, it is =
preempted.
It does not qualify for displacement, or =93reverse preemption,=94 under =
either the
first test of section 101(a)(1) (uniform UETA) or under the second test =
of
section 102(a)(2)(A) (other state law consistent with E-Sign).=A0 However, a second possible =
outcome is that
parts of the state law are preempted and other parts are not.=A0 It is easy to imagine many =
pre-E-Sign
provisions that are consistent with E-Sign, such as a definition of when
something is delivered, a topic E-Sign leaves open to the states.<a
style=3D'mso-footnote-id:ftn56' href=3D"#_ftn56" name=3D"_ftnref56" =
title=3D""><![if =
!supportFootnotes]>[56]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The analysis for
nonuniform UETAs is first: &quot;Is there explicit preemption,&quot; and =
if
not, &quot;Is there implied preemption because the state law conflicts =
with the
federal law?&quot; <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explicit
preemption. =A0Whether a federal statute preempts =
state law
depends upon whether Congress intended that it do so.<a =
style=3D'mso-footnote-id:
ftn57' href=3D"#_ftn57" name=3D"_ftnref57" title=3D""><![if =
!supportFootnotes]>[57]<![endif]></a>=A0 Congress can evince that intent =
either
explicitly, with the language of the statute, or implicitly. Only three =
parts
of E-Sign contain explicitly preemptive language:=A0 sections 101(a), 102(a)(1), and 104.=A0 First, Section 101(a) says that its rule is =
=93notwithstanding any
other provision of law.=94=A0 =
This phrase
applies to section 101(a) of E-Sign, which states the twin general =
rules: <o:p></o:p>

<ul>
  <li>
    <p class=3D"MsoNormal" style=3D"text-indent: 0.5; mso-list: l0 =
level1 lfo2; tab-stops: -1.0in; margin-left: .5in"><font face=3D"Times =
New Roman" size=3D"3"><![if !supportLists]><span =
style=3D'mso-ansi-font-size:12.0pt'>A rule that a
signature, contract, or other record in a transaction relating to =
interstate
commerce may not be denied legal effect, enforceability, or validity =
solely
because it is in electronic form, and <o:p></o:p></span></font></li>
</ul>
<ul>
  <li>
    <p class=3D"MsoNormal" style=3D"text-indent: 0.5; mso-list: l0 =
level1 lfo2; tab-stops: -1.0in; margin-left: .5in"><font face=3D"Times =
New Roman" size=3D"3"><![if !supportLists]><span
style=3D'font:7.0pt "Times New Roman"'> </span><![endif]><span =
style=3D'mso-ansi-font-size:12.0pt'>A rule that a
contract relating to a transaction in interstate commerce cannot be =
denied
legal effect, validity, or enforceability solely because an electronic
signature or electronic record was used in its formation. =
<o:p></o:p></span></font></li>
</ul>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">A nonuniform
provision of a state UETA which regulates when and how electronic =
signatures
and records can be sent or delivered, or the effect of a record or =
signature on
the sender=92s or recipient=92s rights, should not be <b>explicitly =
</b>preempted
because it does not deny effect to an electronic signature or electronic =
record
solely because it is in electronic form.<span style=3D"mso-spacerun: =
yes">=A0
</span>(E-Sign section 101.)<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The explicit
preemption extends to exemptions to the scope of the uniform UETA, but =
only if
those exemptions are inconsistent with E-Sign.<span =
style=3D"mso-spacerun: yes">=A0
</span>This is the cross reference of E-Sign's exemptions for certain
transactions and consumer notices in section 103 with the explicit =
language in
section 102(a)(1).<a style=3D'mso-footnote-id:ftn58' href=3D"#_ftn58"
name=3D"_ftnref58" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[58]<![endif]></span></sup></span></a>
Thus it appears that any exemptions from UETA are limited to those that =
are
consistent with E-Sign; inconsistent exemptions are =
preempted.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The other explicit
preemption in E-Sign is found in section 104, in which a state's =
authority to
issue interpretative regulations of the effects of section 101 are =
preempted by
the specific limitations in section 104. The phrasing of section 104 is
specific, and therefore the preemption is explicit. However, the =
preemption
explicitly flows only along with the application of the rules of section =
101.
To the extent that section 101 preempts state law, then the state is =
limited in
how it can apply its own rules. However, once a state avoids the =
preemption
found in 101 -- by complying with the requirements in section 102 -- the
provisions of section 101 no longer apply in the state, and accordingly =
the
limitations of section 104 do not apply either.=A0 Some may argue that the preemptive provisions in section =
104 are
general in nature =96 that they apply to both a state UETA as well as =
the federal
E-Sign law. But this interpretation is defeated by a close analysis of =
the
language of section 104, as well as by the legislative history.<a
style=3D'mso-footnote-id:ftn59' href=3D"#_ftn59" name=3D"_ftnref59" =
title=3D""><![if =
!supportFootnotes]>[59]<![endif]></a>=A0 There is no equivalent language =
about
interpreting UETA or other state law enacted pursuant to section =
102(a)(2) in
compliance with the strictures in section 104. This is despite the fact =
that
the uniform version of UETA quite specifically includes the grant of =
authority
to states in sections 12(f) and (g).<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Implicit
Preemption.<span style=3D"mso-spacerun: yes">=A0 </span></span></b><span
style=3D'mso-ansi-font-size:12.0pt'>Even where Congress does not =
explicitly state
that it intends to preempt state law on the subject of the federal =
statute,
courts may construe an implicit intent in one of two ways.<span
style=3D"mso-spacerun: yes">=A0 </span>First, a federal statute that =
creates a
scheme =93so pervasive as to make reasonable the inference that Congress =
left no
room for the States to supplement it=94 demonstrates implicit intent to =
preempt
state regulation.<a style=3D'mso-footnote-id:ftn60' href=3D"#_ftn60"
name=3D"_ftnref60" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[60]<![endif]></span></sup></span></a><o:p></o:p></spa=
n></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Second, federal law
may preempt state law to the extent that it actually conflicts with =
federal
law.<a style=3D'mso-footnote-id:ftn61' href=3D"#_ftn61" =
name=3D"_ftnref61" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[61]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>The conflict may arise where it =
is
physically impossible to comply with both the federal and state =
regulations, or
=93where the law stands=92 as an obstacle to the accomplishment and =
execution of
the full purposes and objectives of Congress.=92=94<a =
style=3D'mso-footnote-id:ftn62'
href=3D"#_ftn62" name=3D"_ftnref62" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[62]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

However, it is
doubtful that there can be any implied preemption in the case of E-Sign.
Nothing about this federal statute meets any of the tests for implied
preemption. The entire construct of E-is to fill a void regarding =
electronic
commerce unless and until the states move to act.=A0 Under the &quot;pervasive =
scheme&quot; prong
of implicit preemption (as opposed to the &quot;actual conflict&quot; =
prong),
where the subject matter of the regulation is one traditionally handled =
by the
states, the Supreme Court has stated the =
following:<o:p></o:p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The settled mandate governing this =
inquiry,
in deference to the fact that a state regulation of this kind is an =
exercise of
the 'historic police powers of the States,' is not to decree such a =
federal
displacement 'unless that was the clear and manifest purpose of =
Congress,'<span
style=3D"mso-spacerun: yes">=A0 </span>In other words, we are not to =
conclude that
Congress legislated the ouster of [the state statute by the federal =
rule] in
the absence of an unambiguous congressional mandate to that effect.<a
style=3D'mso-footnote-id:ftn63' href=3D"#_ftn63" name=3D"_ftnref63" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[63]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

So, by definition,
the first test =96 whether the federal law creates a scheme =93so =
pervasive as to
make reasonable the inference that Congress left no room for the States =
to
supplement it=94 does not apply. Instead, the premise of E-Sign =96 as =
evidenced in
section 102 =96 is that federal and state law will work together to =
create a set
of rules for electronic transactions. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The second standard
for implied preemption is also simple to apply to E-Sign =96 if the =
issue does
not conflict with E-Sign, there can be no preemption of a provision =
addressing
it in state law. Indeed, the legislative history on E-Sign is replete =
with
examples of issues affecting electronic records which are not addressed =
in
E-Sign and which Congress deliberately left to the states to address. =
The
primary example of this is the question of when an electronic record is =
considered
delivered.<a style=3D'mso-footnote-id:ftn64' href=3D"#_ftn64" =
name=3D"_ftnref64"
title=3D""><![if =
!supportFootnotes]>[64]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The national
standard for electronic transactions that is contemplated by E-Sign is
articulated in 1) E-Sign=92s section 101, 2) along with the uniform =
version of
UETA, and 3) any other provisions which are consistent with E-Sign and =
not
addressed in E-Sign. Whether these =93other=94 provisions are contained =
in a
non-uniform version of UETA or in another state law, should not matter. =
The
determination of whether any provision not in the uniform version of =
UETA
affecting electronic records and electronic signatures is preempted by =
federal
law is measured by one of two tests: <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

1)&nbsp;
If
the matter is addressed in E-Sign, then the provision must be consistent =
with E-Sign, or else it is preempted. <o:p></o:p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><span =
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">2)&nbsp;<span style=3D"mso-tab-count: 1">
</span>If
the matter is not addressed in E-Sign, it is not =
preempted.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Some nonuniform
provisions of a state UETA should survive E-Sign under this preemption
analysis.=A0 It is easy to =
imagine a
pre-E-Sign provision that is consistent with E-Sign. Questions left open =
by
Congress for the states to address, such as the definition of when =
something is
delivered, should be effective when answered by a non-uniform state UETA =
or
other state law.<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<![if =
!supportEmptyParas]>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp; 3.
E-Sign
Does Not Transform Nonuniform UETAs into Uniform Ones<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

UETA=92s proponents
suggest that even if all or many of the nonuniform parts of an enacted =
UETA are
preempted, the uniform parts survive, transforming a nonuniform UETA =
into a
uniform one.<a style=3D'mso-footnote-id:ftn65' href=3D"#_ftn65" =
name=3D"_ftnref65"
title=3D""><![if =
!supportFootnotes]>[65]<![endif]></a> This
argument turns the insistence of state legislatures on non-uniform UETAs =
on its
head.<a style=3D'mso-footnote-id:ftn66' href=3D"#_ftn66" =
name=3D"_ftnref66" title=3D""><![if =
!supportFootnotes]>[66]<![endif]></a>
Nonuniform UETAs were enacted in states that were originally offered the
uniform UETA.=A0 Those state =
legislatures
deliberately refused to pass UETA without changes, generally to protect
consumers.=A0 If those state =
legislatures
had found UETA adequate without the nonuniform consumer protection =
additions, then
they could have simply enacted the uniform version.=A0 The fact that state legislators made nonuniform changes =
to UETA
is strong evidence that those legislators did not intend the uniform =
version of
UETA to become law in their states.=A0
Clearly, E-Sign applies to these states =96 because no state law =
has
displaced the application of E-Sign. The tests for whether some of the
non-uniform provisions of UETA are still good are determined by the =
questions
examined above, 1) if the matter is addressed in E-Sign, then the =
provision
must be consistent with E-Sign, and 2) if the matter is not addressed in
E-Sign, it is not preempted, and is still good =
law.<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal>&nbsp;</p>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp; 4. Recommendation
for States with Pre-existing UETAs<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

States that passed a
nonuniform version of UETA prior to E-Sign should examine the provisions =
of
their nonuniform act and determine whether those provisions are =
consistent with
E-Sign.=A0 If they are not =
consistent, for
example, the state had chosen a strategy of exemptions (broader than the
federal exemptions) to UETA to address consumer protection concerns, =
then that
state should revise its statute to address the same consumer protection =
issues
in a different manner such as in the companion consumer protection =
statute set
forth in Part IV. Furthermore, E-Sign permits state legislatures to =
address
issues left open by E-Sign, including delivery, format, and effect of
electronic messages.=A0 =
<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

States that passed
any UETA prior to E-Sign should adopt a companion act addressing =
consumer
protection issues left to the states by E-Sign.=A0 To regain state control over record retention issues, =
states
which passed UETA prior to the passage of E-Sign may choose to pass the =
uniform
version of UETA, =A0but =
should do so
only with a companion consumer protection act.=A0 See the recommendations in Part III B, above. =
<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

E.&nbsp; Can a State =
Permit
Electronic Delivery of the Notices Exempted in E-Sign? <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The impact of
E-Sign=92s exemption of key consumer notices in section 103(b) on state =
law is
also tricky.<span style=3D"mso-spacerun: yes">=A0 </span>Unfortunately, =
the answer
to this question is probably =93yes, the state can displace this =
provision if the
state deliberately acts on these notices.=94 A close analysis of the =
structure of
E-Sign is necessary.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

Section 101(a) of
the federal law preempts other laws on the issue of allowing electronic
signatures and electronic records to replace paper writings: =
=93Notwithstanding
any statute . . . with respect to any transaction in or affecting =
interstate or
foreign commerce . . ..=94=A0 =
Section 101(c)
then establishes an exception to the preemptive rule in section 101 for
consumer transactions: =93Notwithstanding subsection (a), if a statute . =
. .
requires that information relating to a transaction . . . be provided . =
. . to
a consumer in writing, the use of an electronic record to provide . . .
satisfies the requirement that such information be in writing if =96 . . =
. .=94<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 102(a)
allows a state to =93modify, limit or supersede the <i>provisions of =
section
101&quot; </i><span style=3D"mso-spacerun: yes">=A0</span>only if the =
state rule
meets the specific requirements of that =
section.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The exemption for
certain consumer notices is contained in section 103(b) of E-Sign. The =
lead-in
language of that section is: =93The provisions of section 101 shall not =
apply to
=96 . . . .=94 As a result, it appears that the effect of section 103 is =
to
leave state law in place on these notices.<a =
style=3D'mso-footnote-id:ftn67'
href=3D"#_ftn67" name=3D"_ftnref67" title=3D""><![if =
!supportFootnotes]>[67]<![endif]></a>
The federal E-Sign law does not change the state law and does not =
prohibit
these notices from being provided electronically. Although Congressional =
intent
is clear that these important notices should continue to be provided in
writing,<a style=3D'mso-footnote-id:ftn68' href=3D"#_ftn68" =
name=3D"_ftnref68"
title=3D""><![if =
!supportFootnotes]>[68]<![endif]></a> it
appears that a state=92s enactment of the uniform version of UETA could =
have the
effect of allowing these notices to be provided electronically. =
However, it
is also crystal clear that a state may continue to require that these =
notices
be provided in writing.<o:p></o:p>

<p class=3DMsoNormal><i><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></i></p>

Because UETA does
not contain exemptions to mirror E-Sign section 103(b)(2), it is =
essential for
any state enacting UETA to repeat the federal exemptions in its UETA. =
This is
further discussed in Part IV.<o:p></o:p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-.5in;tab-stops:-1.0in'>&nbsp;</p>=

F.&nbsp;
UCITA
Amendments Should Not Affect E-Sign. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

A recent action by
NCCUSL has further complicated the picture.=A0
NCCUSL has a very=A0 =
controversial
proposed uniform state law dealing with computer information, including
software and internet service providers, called UCITA.<a =
style=3D'mso-footnote-id:
ftn69' href=3D"#_ftn69" name=3D"_ftnref69" title=3D""><![if =
!supportFootnotes]>[69]<![endif]></a>
In summer 2000, NCCUSL amended UCITA to try to displace E-Sign with =
UCITA's
rules on the enforceability of electronic records and signatures.=A0 This appears in UCITA section =
905. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">UCITA's provisions
have even worse implications for consumers than UETA:<a =
style=3D'mso-footnote-id:
ftn70' href=3D"#_ftn70" name=3D"_ftnref70" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[70]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></span></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![if =
!supportLists]><span style=3D'mso-ansi-font-size:12.0pt'>While UETA
requires agreement to communicate electronically, <a =
style=3D'mso-footnote-id:
ftn71' href=3D"#_ftn71" name=3D"_ftnref71" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[71]<![endif]></span></sup></span></a>
UCITA simply authorizes electronic communications in the place of paper
communications whether or not there has been any agreement.<a =
style=3D'mso-footnote-id:
ftn72' href=3D"#_ftn72" name=3D"_ftnref72" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[72]<![endif]></span></sup></span></a>
<o:p></o:p></span></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><span style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New =
Roman" size=3D"3">UETA states a
&quot;bounce-back&quot; rule,<a style=3D'mso-footnote-id:ftn73' =
href=3D"#_ftn73"
name=3D"_ftnref73" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[73]<![endif]></span></sup></span></a>
so that if the sender knows a message was not sent or received (perhaps =
because
it &quot;bounced&quot; ), then other law decides whether or not that =
notice has
an effect.<span style=3D"mso-spacerun: yes">=A0 </span>In UCITA, by =
contrast,
&quot;sent&quot; but has no bounce back<span style=3D"mso-spacerun: =
yes">=A0
</span>rule. <o:p></o:p></font></span></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![endif]><span =
style=3D'mso-ansi-font-size:12.0pt'>UETA also
contains a rule that it does not displace statutory requirements to =
deliver
information by means other than first class mail, such as hand delivery,
certified mail, or other method.<a style=3D'mso-footnote-id:ftn74' =
href=3D"#_ftn74"
name=3D"_ftnref74" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[74]<![endif]></span></sup></span></a>
UCITA fails to address this topic.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></span></font></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><![endif]><span =
style=3D'mso-ansi-font-size:12.0pt'>UETA plainly
states that the format requirements of other law remain undisturbed. <a
style=3D'mso-footnote-id:ftn75' href=3D"#_ftn75" name=3D"_ftnref75" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[75]<![endif]></span></sup></span></a>
UCITA is silent on this point.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></span></font></li>
</ul>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

UCITA should not
actually qualify as a displacing statute under E-Sign.=A0 E-Sign requires displacing =
statutes other
than UETA to provide alternative=A0
procedures or requirements for the use or acceptance of =
electronic
records or signatures which are consistent with E-Sign.<a =
style=3D'mso-footnote-id:
ftn76' href=3D"#_ftn76" name=3D"_ftnref76" title=3D""><![if =
!supportFootnotes]>[76]<![endif]></a>=A0 See Part III B, above. =
=A0<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">UCITA<span
style=3D"mso-spacerun: yes">=A0 </span>is not consistent in any manner =
with E-Sign:
<o:p></o:p></font></span></p>

<ul>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><span style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New =
Roman" size=3D"3">E-Sign requires
affirmative electronic consent to consumers' use of electronic records =
in place
of legally required written notices.<a style=3D'mso-footnote-id:ftn77'
href=3D"#_ftn77" name=3D"_ftnref77" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[77]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>UCITA does not require that the =
consent<span
style=3D"mso-spacerun: yes">=A0 </span>to communicate electronically be =
given by
electronic means, but instead would appear to permit a paper form =
contract for
future electronic notices.<br>
    <o:p></o:p></font></span></li>
  <li>
    <p class=3D"Level1" style=3D"mso-outline-level: body-text; mso-list: =
l0 level1 lfo2; tab-stops: -1.0in; text-indent: 0.5; margin-left: =
0.5"><font face=3D"Times New Roman" size=3D"3"><span
style=3D'font-style: normal; font-variant: normal; font-weight: normal; =
mso-ansi-font-size: 12.0pt'>&nbsp;
</span><![endif]><span style=3D'mso-ansi-font-size:12.0pt'>UCITA does =
not
require any disclosure to the consumer about the consequences of a =
request to
revert to paper notices at a later time, which is required by E-Sign.<a
style=3D'mso-footnote-id:ftn78' href=3D"#_ftn78" name=3D"_ftnref78" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[78]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>UCITA does not require any =
disclosure to the
consumer at the time of consent or at any other time about what hardware =
and
software will be needed to receive the communications which are to be =
provided
electronically, another requirement of E-Sign.<a =
style=3D'mso-footnote-id:ftn79'
href=3D"#_ftn79" name=3D"_ftnref79" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[79]<![endif]></span></sup></span></a><o:p></o:p></spa=
n></font></li>
</ul>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Because UCITA is
weaker than both E-Sign and UETA, it should not qualify as a displacing
statute. To avoid the need for litigation on this question, however, =
states
should take care not to adopt UCITA section 905.<a =
style=3D'mso-footnote-id:ftn80'
href=3D"#_ftn80" name=3D"_ftnref80" title=3D""><![if =
!supportFootnotes]>[80]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">IV. <span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span>Language
to Implement These Approaches<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

The following
language is offered for Options One and Two =96 UETA with a companion =
consumer
protection statute or a companion consumer protection act alone to =
accompany
E-Sign. The text of the recommended language is also set forth, without =
accompanying
explanation, in Appendix 2.=A0 =
The
discussion for Option 3 -=A0 =
UETA with =93no
displacement=94=A0 =96 sets =
forth suggested
language.=A0 No language is =
needed for
Option Four=A0 =96 the =93no =
UETA=94 approach.
Because Option Five is not recommended, no language is offered for it. =
<o:p></o:p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>1)<span
style=3D"mso-spacerun: yes">=A0 </span>Consumer consent to engage in =
electronic
transactions should be given or confirmed <i>electronically</i> and =
should
include disclosures</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 1. (a)=A0 Notwithstanding the Uniform =
Electronic
Transactions Act, the use of an electronic record to provide or make =
available
(whichever is required) information required by a statute, regulation, =
or rule
of law, to be provided or made available to a consumer shall satisfy any
requirement that the record be in writing, =
if=97<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: -1.0in; margin-left: =
0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(1)&nbsp;<span style=3D"mso-tab-count: 1">
</span>the
consumer has affirmatively consented to such use and has not withdrawn =
such
consent;<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D"margin-left: 0.5in"><font face=3D"Times =
New Roman" size=3D"3"><span style=3D'mso-ansi-font-size:12.0pt'><![if =
!supportEmptyParas]></span><span style=3D'mso-ansi-font-size:
12.0pt'>(2)&nbsp;<span style=3D"mso-tab-count: 1"> </span>the consumer,
prior to consenting, is provided with a clear and conspicuous =
statement&#8209;&#8209;<o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(i) informing the =
consumer of (I) any right or option of the consumer
to have the record provided or made available on paper or in =
nonelectronic
form, and (II) the right of the consumer to withdraw the consent to have =
the
record provided or made available in an electronic form and of any =
conditions,
consequences (which may include termination of the parties' =
relationship), or
fees in the event of such withdrawal;&nbsp;</font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3"> =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(ii) informing the =
consumer of whether the consent applies (I) only to
the particular transaction which gave rise to the obligation to provide =
the
record, or (II) to identified categories of records that may be provided =
or
made available during the course of the parties' =
relationship;<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(iii) describing the =
procedures the consumer must use to withdraw
consent as provided in clause (i) and to update information needed to =
contact
the consumer electronically; and <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.5in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(iv) informing the =
consumer (I) how, after the consent, the consumer
may, upon request, obtain a paper copy of an electronic record, and (II)
whether any fee will be charged for such copy; =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(3)&nbsp; the =
consumer&#8209;&#8209;<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(i) prior to =
consenting, is provided with a statement of the hardware
and software requirements for access to and retention of the electronic
records; and <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(ii) consents =
electronically, or confirms his or her consent
electronically, in a manner that reasonably demonstrates that the =
consumer can
access information in the electronic form that will be used to provide =
the
information that is the subject of the consent; and =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: -1.0in; margin-left: =
0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(4)&nbsp;
after
the consent of a consumer in accordance with subparagraph (1), if a =
change in
the hardware or software requirements needed to access or retain =
electronic
records creates a material risk that the consumer will not be able to =
access or
retain a subsequent electronic record that was the subject of the =
consent, the
person providing the electronic =
record&#8209;&#8209;<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;</font></span></p>

<p class=3DMsoNormal style=3D"margin-left: 1in"><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(i) provides the =
consumer with a statement (I) describing the revised
hardware and software requirements for access to and retention of the
electronic records, and (II) complying with section 1(a)(2)(iii) by =
describing
the procedures the consumer must use to withdraw consent as provided in =
clause
(i) and to update information needed to contact the consumer =
electronically;
and with section 1(a)(2)(iv) by informing the consumer (I) how, after =
the
consent, the consumer may, upon request, obtain a paper copy of an =
electronic
record, and (II) whether any fee will be charged for such copy; =
and<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left: 1in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(ii) again complies =
with this subsection. <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source:<span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign =A7 =
101(c).]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation: </span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0</span>This
language uses the requirements for consumer consent in section 101(c) of =
the
federal E-Sign bill.<span style=3D"mso-spacerun: yes">=A0 </span>This =
language
follows E-Sign=92s approach of applying the consent rule to all notices =
required
by statute, regulation or rule of law to be in writing.<span
style=3D"mso-spacerun: yes">=A0 </span>The language is slightly =
different from that
of E-Sign=92s section 101(c) because in addition to applying to those =
notices
required by law to be writing, it also applies the consent rules to =
notices
which are implicitly, but not explicitly,<a =
style=3D'mso-footnote-id:ftn81'
href=3D"#_ftn81" name=3D"_ftnref81" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[81]<![endif]></span></sup></span></a>
required to be provided in writing.<a style=3D'mso-footnote-id:ftn82'
href=3D"#_ftn82" name=3D"_ftnref82" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[82]<![endif]></span></sup></span></a><o:p></o:p></spa=
n></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent:.5in'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(b) Notwithstanding =
the Uniform Electronic Transactions Act, the use of
an electronic record to provide or make available information required =
by
contract shall satisfy any promise that the information will be provided =
or
made available in writing only if the consumer =96 =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(1)&nbsp;<span style=3D"mso-tab-count: 1">
</span>prior
to consenting, is provided with a statement of the hardware and software
requirements for access to and retention of the electronic records; =
and<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D"text-indent: 0.5; margin-left: 0.5"><span =
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(2)&nbsp;
consents
electronically to receive written notices electronically, or confirms =
consent
electronically, in a manner that reasonably demonstrates that the =
consumer can
access information in the electronic form that will be used to provide =
the
information that is the subject of the =
consent.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: This is a
streamlined version of E-Sign=92s section 101(c)=92s requirements for =
legally
required notices.]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation:<span
style=3D"mso-spacerun: yes">=A0 </span></span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'>Subsection (b) provides a condensed consent rule for electronic =
receipt
of notices which a contract promises will be provided in writing.<span
style=3D"mso-spacerun: yes">=A0 </span>A more concise rule is offered =
here because
these are notices that are not required by law to be given in =
writing.<span
style=3D"mso-spacerun: yes">=A0 </span>Notices required by law fall =
under E-Sign
section 101(c) and subsection (a) of this language.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Notices sent pursuant only to contract are offered the =
protection
of electronic consent or electronic confirmation of prior written =
consent, in a
manner reasonably designed to ensure that the consumer will be able to =
open the
subsequent contractual notices.<a style=3D'mso-footnote-id:ftn83' =
href=3D"#_ftn83"
name=3D"_ftnref83" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[83]<![endif]></span></sup></span></a><o:p></o:p></spa=
n></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>2)
Federal rules from E-Sign should be
applied to document retention and integrity requirements =
</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 2.<span
style=3D"mso-spacerun: yes">=A0 </span>(a) If a statute, regulation, or =
other rule
of law requires that a contract or other record be retained, that =
requirement
is met by retaining an electronic record of the information in the =
contract or
other record that=96<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(1) accurately
reflects the information set forth in the contract or other record; =
and<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5'><span =
style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: -1.0in; =
margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(2) remains
accessible to all persons who are entitled to access by statute, =
regulation, or
rule of law, for the period required by such statute, regulation, or =
rule of
law, in a form that is capable of being accurately reproduced for later
reference, whether by transmission, printing, or =
otherwise.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: E-Sign =A7
101(d)]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">(b) Notwithstanding
subsection (a), if a statute, regulation, or other rule of law requires =
that a
contract or other record be in writing, the legal effect, validity, or
enforceability of an electronic record of such contract or other record =
may be
denied if such electronic record is not in a form that is capable of =
being
retained and accurately reproduced for later reference by all parties or
persons who are entitled to retain the contract or other =
record.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: E-Sign =A7
101(e)]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'> The recommended language is =
identical to
that in E-Sign.<a style=3D'mso-footnote-id:ftn84' href=3D"#_ftn84" =
name=3D"_ftnref84"
title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:
footnote'><![if =
!supportFootnotes]>[84]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>It sets a more complete standard =
than UETA
for the accuracy and integrity of a record.<a =
style=3D'mso-footnote-id:ftn85'
href=3D"#_ftn85" name=3D"_ftnref85" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[85]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>Unlike E-Sign, UETA does not =
specify to whom
the record must remain accessible for later reference, nor for how =
long.<span
style=3D"mso-spacerun: yes">=A0 </span>The recommended language, taken =
from E-Sign,
adds requirements that the record remain accessible:<span =
style=3D"mso-spacerun:
yes">=A0&nbsp; </span></span></font></p>

<p class=3DMsoNormal><span
style=3D'mso-ansi-font-size:12.0pt'> <font face=3D"Times New Roman" =
size=3D"3"><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if !supportEmptyParas]>1)<span =
style=3D'mso-tab-count:1'>
</span>to
all persons who are entitled to access by statute, regulation, or rule =
of law; <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">2)
for
the period required by law [this probably could be inferred into UETA =
Section
(12)]; and <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">3)
in
a form that is capable of being accurately reproduced for later =
reference by
all parties.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

This language, like
E-Sign section 101(e), also contains a sanction not found in UETA.=A0 It allows a court to deny =
enforceability to
a record required to be in writing if the record is not in a form which =
is
capable to being retained and accurately reproduced by all parties who =
are
entitled to retain it. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'><![if =
!supportEmptyParas]>3)</span></b><span
style=3D'mso-ansi-font-size:12.0pt'> <b>Oral
communications cannot be electronic records in consumer =
transactions</b><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 3.=A0 In consumer transactions, an oral
communication or a recording of an oral communication shall not qualify =
as an
electronic record. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: E-Sign
=A7101(c)(6)]<span style=3D"mso-spacerun: yes">=A0 </span>(Note:<span
style=3D"mso-spacerun: yes">=A0 </span>this is needed only in states =
that enact
UETA)<o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

</div>

<div class=3DSection29 style=3D"width: 583; height: 1582">

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'> The definition of =93electronic =
record=94 under
both E-Sign and UETA includes <u>any</u> information that is =
electronically
stored and retrievable in perceivable form.<span style=3D"mso-spacerun: =
yes">=A0
</span>Taken literally, this includes a tape recording of a phone =
call.<span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign recognizes that a =
recording of a
telephone call should not be allowed to satisfy the requirement that a =
record
be given to a consumer, because the recording is not in a form that can =
be
easily referenced by the consumer<i>.<a style=3D'mso-footnote-id:ftn86'
href=3D"#_ftn86" name=3D"_ftnref86" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[86]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span></i>Adding this language to a =
state
companion law would close this loophole in UETA.<span =
style=3D"mso-spacerun:
yes">=A0 </span>If a state enacts only a companion statute and not UETA, =
this
section is not needed.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>4)</span></b><span
style=3D'mso-ansi-font-size:12.0pt'>&nbsp;<b><span =
style=3D"mso-tab-count: 1"> </span><span style=3D'mso-ansi-font-size: =
12.0pt'>P</span>rohibit
electronic delivery as a complete substitute for certain essential =
notices</b><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 4.=A0 Notwithstanding the provisions of =
the
Uniform Electronic Transactions Act, the requirement that a notice be in
writing is not satisfied by providing or delivering any of the following =
types
of notices electronically. This provision applies to notices of --=A0 <o:p></o:p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(a) the cancellation =
or termination of utility services (including
water, heat, and power);&nbsp;<br>
</font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(b) default, =
acceleration, repossession, foreclosure, or eviction, or
the right to cure, under a credit agreement secured by, or a rental =
agreement
for, a primary residence of an individual;<br>
</font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(c) the cancellation =
or termination of health insurance or benefits or
life insurance benefits (excluding annuities);&nbsp;<br>
</font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(d) recall of a =
product, or material failure of a product, that risks
endangering health or safety;&nbsp;</font></span><span =
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><br>
<![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:
12.0pt'><font face=3D"Times New Roman" size=3D"3">(e) any document =
required to accompany any transportation or handling
of hazardous materials, pesticides, or other toxic or dangerous =
materials.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: E-Sign
=A7103(b)(2)] <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explanation:=A0 This
list of exempted notices is identical to the exemptions to E-Sign.<a
style=3D'mso-footnote-id:ftn87' href=3D"#_ftn87" name=3D"_ftnref87" =
title=3D""><![if =
!supportFootnotes]>[87]<![endif]></a>=A0 By including these exemptions, =
Congress
recognized that electronic delivery does not currently provide the same =
degree
of assurance of receipt as does the U.S. mail.=A0
These exemptions should be specifically enacted by any state =
which
enacts UETA to assure that these essential notices continue to be =
provided on
paper.<a style=3D'mso-footnote-id:ftn88' href=3D"#_ftn88" =
name=3D"_ftnref88" title=3D""><![if =
!supportFootnotes]>[88]<![endif]></a><o:p></o:p></spa=
n>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The exemption does
not mean that notices such as utility shut-off notices can never be sent
electronically, it only means that the electronic notice alone does not
suffice.<span style=3D"mso-spacerun: yes">=A0 </span>Because this list =
of
exemptions is identical to those permitted under E-Sign, this addition =
to state
law should be consistent with E-Sign and thus permitted under E-Sign =
section
102(a)(2).<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">A state which does
not enact UETA does not need this companion =
provision.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if !supportEmptyParas]>5)<span
style=3D'mso-tab-count:1'> </span>Definition of consumer =
transaction<span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0 </span><span =
style=3D'mso-tab-count:2'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0=A0=A0=A0=A0=A0
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended =
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 5.<span
style=3D"mso-spacerun: yes">=A0 </span>=93Consumer=94 means a natural =
person acting
with respect to or affecting primarily personal, family or household =
purposes.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

[Source:=A0 The =93primarily for personal, =
family or
household purposes=94 test is widely used in federal and state consumer =
statutes;
however the =93acting with respect to or affecting=94 language is new =
and slightly
broader. The North Carolina law uses this language, see N.C.G.S. =
=A7
66-308.1(4).]<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explanation: UETA will apply to all sorts of =
personal
transactions, including purchases, credit, securities transactions,
interactions with government, etc. The protections for consumers should =
apply
as broadly as possible.=A0 =
This
language is consistent with,<a style=3D'mso-footnote-id:ftn89' =
href=3D"#_ftn89"
name=3D"_ftnref89" title=3D""><![if =
!supportFootnotes]>[89]<![endif]></a>
but not exactly the same as, that in E-Sign.<a =
style=3D'mso-footnote-id:ftn90'
href=3D"#_ftn90" name=3D"_ftnref90" title=3D""><![if =
!supportFootnotes]>[90]<![endif]></a>=A0=A0=A0=A0=A0=A0=A0=A0=A0 =A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0=A0=A0=A0=A0=A0
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
<o:p></o:p>

<p class=3DMsoNormal>&nbsp;</p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>6)<span style=3D"mso-tab-count: 1">
</span>Rules for consumer contracts should not
be changeable in form contracts</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 6.=A0 In consumer transactions, the =
rules and
requirements set out in this Act may not be changed by agreement of the
parties. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: =
new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explanation:=A0
This provision should be included to avoid any argument that =
consumers
waive the companion statute=92s consumer protection provisions when =
signing a
form contract.=A0 While =
E&#8209;Sign=92s
language does not address waiver, its provisions would make little sense =
if
they could be waived.=A0 An =
explicit
no-waiver provision is entirely consistent with E-Sign and thus should =
be
permitted. <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">7)<span
style=3D'mso-tab-count:1'> </span>Permit consumers to respond
electronically to electronic notices <o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 7.=A0 When a consumer is required to =
provide
notice to exercise or preserve the consumer's rights under any law, the
consumer may exercise or preserve that right in the same manner in which =
the
consumer was provided with notice of that right. =
<o:p></o:p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: =
new]<o:p></o:p></font></span></p>

</div>

&nbsp;

<div class=3DSection31 style=3D"width: 615; height: 3156">

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation: </span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0</span>This
section is needed as a companion to UETA to avoid interference with =
state
notice of right to cancel statutes.<span style=3D"mso-spacerun: yes">=A0
</span>Those statutes generally say that the consumer may exercise the =
right to
cancel by returning the notice of right to cancel in writing.<span
style=3D"mso-spacerun: yes">=A0 </span>Because UETA requires that each =
party
=93agree=94 to receive an electronic notice, a merchant could put in its =
contract a
clause that says, in essence, =93Company many communicate with consumer
electronically, but consumer must communicate with company on =
paper.=94<span
style=3D"mso-spacerun: yes">=A0 </span>Such a clause, if enforced,<a
style=3D'mso-footnote-id:ftn91' href=3D"#_ftn91" name=3D"_ftnref91" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[91]<![endif]></span></sup></span></a>
could render a consumer=92s electronic reply to an electronic notice of =
right to
cancel ineffective.<span style=3D"mso-spacerun: yes">=A0 </span>This =
language
closes that loophole.<span style=3D"mso-spacerun: yes">=A0 </span>If a =
state enacts
only a companion statute and not UETA, this section may not be =
needed.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">This language should
not be preempted under E-Sign section 102(a)(2)(A).<span =
style=3D"mso-spacerun:
yes">=A0 </span>It addresses an issue not addressed in E-Sign, it =
facilitates
electronic communication from consumers to merchants, and it is
technology-neutral.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

8)&nbsp; Require that electronic delivery
have the same degree of assurance of receipt as does the U.S. Mail=A0 <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended =
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 8.<span
style=3D"mso-spacerun: yes">=A0 </span>Notices required to be provided, =
sent or
delivered to a consumer shall be considered received only when the =
notice is
opened, acknowledged, or automatically acknowledged by a flag that tells =
the
sender it has been opened.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: =
new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explanation: Computers crash, ISPs and email =
addresses
change, and often there is no system for forwarding mail.=A0 Even corporate email systems seem =
to break
down fairly frequently.=A0 =
Until email
reaches the at least the degree of reliability of the U.S. Postal =
Service, care
must be taken to assure that consumers actually receive important =
information
that is sent electronically.=A0 =
The
recommended language gives three ways to trigger effectiveness of a =
notice:=A0 1) actual opening; 2) manual =
acknowledgment;
or 3) a technological automatic acknowledgment received by the =
sender.=A0 <o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">E-Sign leaves
delivery requirements for electronic records to state laws.<a =
style=3D'mso-footnote-id:
ftn92' href=3D"#_ftn92" name=3D"_ftnref92" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[92]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>The legislative history states in =
part: <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><span =
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">State
and federal law requirements on delivery documents have not been =
addressed in
this Act.<span style=3D"mso-spacerun: yes">=A0 </span>The underlying =
rules on these
issues still prevail.<span style=3D"mso-spacerun: yes">=A0 </span>It is =
our view
that records provided electronically to consumers must be provided in a =
manner
that has the same expectation for the consumer=92s actual receipt as was
contemplated when the state law requirement for provided was passed.<a
style=3D'mso-footnote-id:ftn93' href=3D"#_ftn93" name=3D"_ftnref93" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[93]<![endif]></span></sup></span></a><span
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0
</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">9)<span
style=3D"mso-spacerun: yes">=A0 </span>Timeframes triggered by legally =
required
notices should start when the consumer opens or acknowledges the =
notice<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 9.<span
style=3D"mso-spacerun: yes">=A0 </span>(a) Any time period for action by =
or rights
to a consumer which is triggered by the sending or receipt of a notice =
is
triggered by an electronic notice no earlier than the earliest of these
dates:<span style=3D"mso-spacerun: yes">=A0 </span>the date the consumer =
opens the
notice, the date the consumer acknowledges electronic receipt of the =
notice; or
the date on which the technology by which the notice is sent provides
confirmation that the notice has been received and opened by the =
consumer.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: =
new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0 </span>Some
people who use email check it frequently throughout a single day.<span
style=3D"mso-spacerun: yes">=A0 </span>Others, particularly those who =
have
previously used email for personal use and not for business use, may =
check it
infrequently.<span style=3D"mso-spacerun: yes">=A0 </span>Electronic =
notices that
replace paper notices may, in some cases, trigger time periods in which
consumers must act or lose legal rights.<span style=3D"mso-spacerun: =
yes">=A0
</span>In those cases, the time period should start to run when the =
email is
opened or acknowledged by the consumer, or when the consumer=92s machine =
sends an
automatic acknowledgement that the message has been =
opened.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><span
style=3D"mso-spacerun: yes">=A0</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">10)<span
style=3D"mso-spacerun: yes">=A0 </span>Records should be effective as =
against a
consumer only when they are received in a manner in which they can be =
opened,
read, stored and printed<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Section 10.<span
style=3D"mso-spacerun: yes">=A0 </span>An electronic record sent in a =
transaction
with a consumer is not sent to or received by a consumer until it is =
received
by the intended recipient in a manner which can be opened, read, stored =
and
printed by that recipient.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">[Source: =
new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Explanation:=A0 Email can arrive in a form in which it cannot be opened, or can =
be
opened but not read.=A0 Records =
which the
consumer can=92t see, use, or retain should not be given broad legal =
effect.=A0 E-Sign is silent on the effect of =
a record
that can=92t be opened, although it does say that a record may be denied
enforceability if a law requires it to be in writing and it is in a form =
in
which it can=92t be retained and accurately reproduced for later =
reference by all
parties.<a style=3D'mso-footnote-id:ftn94' href=3D"#_ftn94" =
name=3D"_ftnref94"
title=3D""><![if =
!supportFootnotes]>[94]<![endif]></a>=A0 UETA=92s comments say that a =
record is sent
when it leaves the control of the sender, and that =93whether a record =
is
unintelligible or unusable by the recipient is a separate issue from =
whether
that record was sent or received.=A0 =
The
effectiveness of an illegible record, whether it binds any party, are =
questions
left to other law.=94<a style=3D'mso-footnote-id:ftn95' href=3D"#_ftn95"
name=3D"_ftnref95" title=3D""><![if =
!supportFootnotes]>[95]<![endif]></a>=A0 Most other law is likely to be =
silent on the
topic of notices that are unopenable when they arrive, since this =
hasn=92t been
an issue with mailed paper notices.=A0
This language for the companion act provides law to address the =
effect
of inability to open, read, and use an electronically delivered notice. =
<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">11)<span
style=3D"mso-spacerun: yes">=A0 </span>Hand delivery should be preserved =
in
face-to-face transactions if sales materials are hand delivered =
<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">Recommended
language: <o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 11.=A0 When the parties to a transaction =
in which
one of the parties is a consumer are both physically present in the same
location, or one party is present along with the agent of another, any
contract, policy, notice, disclosure or other document provided at that =
time
which is provided in a form other than orally must also be provided in =
the same
medium, other than orally, in which sales materials are provided.=A0 This section does not prevent the =
additional
delivery of the same documents by other means. =
<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

[Source: new.
Adapted from North Carolina requirements for paper copies in =
face-to-face
transaction, see N.C.G.S. =A7=A0
66-308.16(d).]<o:p></o:p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]></font></span></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><b><span =
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0 </span>This
addresses the issue of the door to door salesperson with the laptop who =
uses
paper sales material but then induces the consumer to click to sign an
electronic contract, leaving the consumer without a copy of the =
contract.<span
style=3D"mso-spacerun: yes">=A0 </span>Because a contract is usually not =
a legally
required document, such a practice might evade the consent requirements =
of
E-Sign section 101(c).<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></span></font></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">North Carolina
addresses this issue by requiring that, in any consumer transaction =
where the
electronic equipment is provided by the seller, the consumer must be =
given a
written nonelectronic copy of the contract, and any consent to receive =
future
electronic notices must be made or confirmed on electronic equipment not
provided by the seller.<a style=3D'mso-footnote-id:ftn96' =
href=3D"#_ftn96"
name=3D"_ftnref96" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[96]<![endif]></span></sup></span></a><o:p></o:p></fon=
t></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">The recommended
language offered here is based on the North Carolina approach.<span
style=3D"mso-spacerun: yes">=A0 </span>However, it is more clearly =
technology
neutral.<span style=3D"mso-spacerun: yes">=A0 </span>It simply requires =
that the
contract and other documents be given in the same medium as the sales =
material.<span
style=3D"mso-spacerun: yes">=A0 </span>If a salesperson makes a fully =
electronic
sales pitch, paper copies of the contract are not required.<span
style=3D"mso-spacerun: yes">=A0 </span>If, however, the salesperson uses =
paper
sales materials in an in&#8209;person sale, then the contract and other
documents must be provided in that same medium.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Of course, those documents may be provided =
electronically as well
if the seller so desires.<o:p></o:p></font></span></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal><b><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3">12)<span
style=3D"mso-spacerun: yes">=A0 </span>Place of contracting is the =
consumer=92s
residence<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal><span style=3D'mso-ansi-font-size:12.0pt'><font =
face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language: <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 12.<span style=3D"mso-spacerun: yes">=A0
</span>A transaction entered into by a consumer electronically is =
entered into
at the individual=92s place of residence. <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: N.C.G.S. =A7 =
66-308.16(d).]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0
</span>E-Sign and UETA are both silent about the place of formation of =
an
electronic contract.<span style=3D"mso-spacerun: yes">=A0 </span>States =
may wish to
clarify by statute that acts by a consumer to enter into an electronic =
contract
occur in the consumer=92s home state and county.<span =
style=3D"mso-spacerun: yes">=A0
</span>The North Carolina law, which enacts both UETA and companion =
provisions
as authorized by E-Sign, contains this type of =93place of formation=94 =
rule.<a
style=3D'mso-footnote-id:ftn97' href=3D"#_ftn97" name=3D"_ftnref97" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[97]<![endif]></span></sup></span></a><o:p></o:p></spa=
n></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>13)&nbsp;<span =
style=3D'mso-tab-count:1'> </span>Rules
for electronic transferable records must assure consumers need not pay =
twice on
a single note.<span style=3D"mso-spacerun: yes">=A0 =
</span></span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section. 13.<span style=3D"mso-spacerun: yes">=A0
</span>Notwithstanding the provisions of the Uniform Electronic =
Transactions
Act, the following rules apply to transferable records of transactions =
involving
consumers:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(a) If payment is made to a person that the
system indicates is in control of a transferable record, the obligor is
discharged to the extent of the payment.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) A transferable record remains subject to
the defenses of alteration and unauthorized signature whether or not =
those
defenses are apparent on the face of the =
record.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(c) A record does not qualify as a
transferable record if a system is unable to reliably establish the =
person
entitled to enforce the record or the system permits the creation of =
multiple
copies that appear to be authoritative =
copies.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(d) A consumer is entitled, on request and
without charge, to a printed or printable copy of a transferable record =
at any
time.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Explanation.</span></b><span
style=3D'mso-ansi-font-size:12.0pt'> Both UETA and E-Sign establish that
negotiable instruments may be created and stored electronically.<a
style=3D'mso-footnote-id:ftn98' href=3D"#_ftn98" name=3D"_ftnref98" =
title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[98]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign=92s authorization applies =
only to
negotiable instruments secured by real property.<span =
style=3D"mso-spacerun:
yes">=A0 </span>UETA applies to any kind of electronic loan note.<span
style=3D"mso-spacerun: yes">=A0 </span>Both E-Sign and UETA give holder =
in due
course status to the new holder of the electronic note even though that =
holder
is not in possession of the original note.<span style=3D"mso-spacerun: =
yes">=A0
</span>=93Original=94 is, of course, a questionable concept in =
electronic notes,
because there can be multiple identical electronic =
copies.<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Both E-Sign and UETA use the concept of
=93transferable record=94 to define a way of storing and transferring =
electronic
notes which is intended to create a unique, electronic copy which is =
identified
as the authoritative copy.<span style=3D"mso-spacerun: yes">=A0 =
</span>If these
statutes work as hoped, there will never be more than one authoritative
copy.<span style=3D"mso-spacerun: yes">=A0 </span>This companion =
provision is
designed to protect consumers if this optimism is misplaced.<span
style=3D"mso-spacerun: yes">=A0 </span>This provision protects the =
consumer if he
or she pays on a duplicate electronic loan note, and clarifies that the
defenses of alteration and unauthorized signature remain =
available.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Under the holder in due course rule, a
consumer may be unable to raise defenses to a loan note which are not =
apparent
on the face of the note.=A0 The =
holder in
due course rule assumes that the face of a paper loan note will show all =
but
perhaps the most sophisticated of alterations. If an electronic loan =
note is
altered or duplicated, it is far less likely than with a paper loan note =
that
there will be any evidence of that change on the face of the loan =
note.=A0 The conferral of holder in due =
course status
on assignees of electronic loan notes makes it particularly important to
explicitly protect the consumer borrower from the consequences of =
alteration,
unauthorized signature, and payment when there are multiple apparently
authorized copies being held by different parties.<a =
style=3D'mso-footnote-id:
ftn99' href=3D"#_ftn99" name=3D"_ftnref99" title=3D""><![if =
!supportFootnotes]>[99]<![endif]></a><o:p></o:p></fon=
t>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>14) Establish
relation with federal E-Sign. </span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended Language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

</div>

<div class=3DSection35 style=3D"width: 623; height: 3465">

Section 14.=A0=A0
The requirements of this Act are designed to supplement, not to =
modify,
limit, or supersede, the provisions of the federal Electronic Signatures =
in
Global and National Commerce Act.=A0 =
If
any part of this Act is held to be preempted by federal law, the =
provisions of
the Uniform Electronic Transactions Act shall be without further force =
and
effect with respect to transactions entered into primarily for personal,
family, or household purposes. <o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Explanation: </span></b><span
style=3D'mso-ansi-font-size:12.0pt'>This section indicates the state=92s =
intent is
to supplement, not to modify, limit, or supersede, federal law.<span
style=3D"mso-spacerun: yes">=A0 </span>The effect of this should be that =
both
federal law and state law should apply.<span style=3D"mso-spacerun: =
yes">=A0
</span>Secondly, it establishes the state=92s intent to protect =
consumers from
the risks created by the uniform version of UETA, by stating that if the
companion act=92s consumer protection provisions are preempted for some =
reason,
UETA also will not apply to consumer transactions.<span =
style=3D"mso-spacerun:
yes">=A0 </span>In this case, E-Sign would provide the only law =
governing
electronic records in consumer transactions in that =
state.<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>15)<span style=3D"mso-spacerun: =
yes">=A0
</span>States that enacted UETA before E-Sign should add a coordinating
provision</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Passage of UETA before E-Sign may create
confusion and litigation over 1) whether the federal consumer =
protections apply
in the state, and 2) whether the non-uniform provisions of the state=92s =
UETA
apply after E-Sign.<a style=3D'mso-footnote-id:ftn100' href=3D"#_ftn100"
name=3D"_ftnref100" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[100]<![endif]></span></sup></span></a>
States that have already passed UETA should consider adding the =
following
provision to avoid future litigation over whether the state=92s UETA =
remains in
effect if parts of it are preempted:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended Language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 15.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(a) No law of this state is intended to
limit, modify, or supersede the requirements of Sections 101 (c), (d), =
or (e),
or to authorize electronic delivery of any notice of the type described =
in Section
103(b) of the Electronic Signatures in Global and National Commerce =
Act.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) If any part of this Act is held to be
preempted by federal law, the provisions of the Uniform Electronic =
Transactions
Act shall be without further force and effect with respect to =
transactions
entered into primarily for personal, family, or household =
purposes.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Explanation:</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><span style=3D"mso-spacerun: =
yes">=A0
</span>Nothing in the federal E-Sign law mandates that a state's passage =
of
UETA or other law regarding the use of electronic signatures =
automatically
displaces the federal law.<span style=3D"mso-spacerun: yes">=A0 =
</span>Instead,
E-Sign gives states a choice.<span style=3D"mso-spacerun: yes">=A0 =
</span>Thus,
E-Sign=92s important consumer protections should not be displaced unless =
a
state=92s enactment includes deliberate language evidencing an intent to
&quot;modify, limit or supersede&quot; the federal E-Sign law.<span
style=3D"mso-spacerun: yes">=A0 </span>Adding language clearly stating =
an intent
not to displace, however, adds clarity and avoids uncertainty and =
litigation.<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Conclusion<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Consumers welcome the opportunity to engage
in safe and secure online transactions.=A0
However, safety,=A0 =
security, and
consumer confidence are built upon this nation=92s long history of =
providing
strong consumer protections.=A0 =
Consumer
protections equivalent to those found in the offline world must be built =
into
the online marketplace.=A0 =
States should
consider declining UETA now that E-Sign is in place.=A0 Any state enacting UETA after E-Sign should clarify that =
UETA is
subordinate to E-Sign=92s consumer protections.=A0
It would be even better for states enacting UETA to combine it =
with a
companion statute adding the consumer protections as permitted by =
E-Sign.
Strong consumer protection should build confidence in and encourage the =
use of
electronic commerce.&nbsp;

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Appendix
1<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:center 3.25in left 3.5in 4.0in =
4.5in 5.0in 5.5in 6.0in right 6.5in'><font face=3D"Times New Roman" =
size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Comparison
of E-Sign and UETA on Key Issues</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'> <o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign and UETA differ in other important
ways.<span style=3D"mso-spacerun: yes">=A0 </span>Here are the answers =
to some key
consumer protection questions under E-Sign and =
UETA:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Question:<span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Is
real consumer consent required?</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Answer:</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'><span style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Required for those notices that are required by law to =
be in
writing<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes and no.<span
style=3D"mso-spacerun: yes">=A0 </span>Agreement is required for =
contracts and
notices, but it may be inferred from the context, including =
conduct.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Question:<span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Must
the consent be electronic?</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Answer:</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Consent must be given or confirmed =
electronically.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;text-indent:-.5in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>No.<span style=3D"mso-spacerun: =
yes">=A0
</span>Consent may be given on paper for future electronic =
communications.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><span
style=3D'mso-ansi-font-size:12.0pt'><![if =
!supportEmptyParas]></span><b><span
style=3D'mso-ansi-font-size:12.0pt'>Question:<span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Are
pre-consent disclosures required?</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Answer</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'>:<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Disclosures must include: 1) the types of needed =
hardware and
software; 2) how to request a paper copy and the cost, if any; 3) how to =
update
contact information, and 4) how to withdraw =
consent.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>No.<span style=3D"mso-spacerun: =
yes">=A0
</span>No pre-consent disclosures are =
required.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Question:<span =
style=3D'mso-tab-count:1'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Can
a recording of a phone call replace a written =
notice?<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Answer</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'>:<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>No, for consumer =
transactions.<span
style=3D"mso-spacerun: yes">=A0 </span>Does not permit oral =
communications or
recordings of oral communications to qualify as an electronic record in
consumer transactions.<a style=3D'mso-footnote-id:ftn101' =
href=3D"#_ftn101"
name=3D"_ftnref101" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[101]<![endif]></span></sup></span></a><o:p></o:p></fo=
nt></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes.<span =
style=3D"mso-spacerun:
yes">=A0 </span>A tape recording of a voice conversation is an =
electronic record.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Question:<span =
style=3D'mso-tab-count:1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span>Are
any types of consumer notices exempt?<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Answer:</font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Yes.<span =
style=3D"mso-spacerun:
yes">=A0 </span>E-Sign exempts these consumer notices:<a =
style=3D'mso-footnote-id:
ftn102' href=3D"#_ftn102" name=3D"_ftnref102" title=3D""><span
class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[102]<![endif]></span></sup></span></a><o:p></o:p></fo=
nt></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Utility termination and shut offs; =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Default, acceleration, repossession,
foreclosure or eviction, or a right to cure, under a rental agreement or =
a
mortgage on a principal residence;<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Cancellation or termination of health
insurance or benefits, and of life insurance benefits (except =
annuities); and<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Product recall or material failure of a
product that risks endangering health and =
safety.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>No.<span style=3D"mso-spacerun: =
yes">=A0
</span>UETA leaves it to each state to decide what consumer law =
provisions, if
any, should be exempted.<span style=3D"mso-spacerun: yes">=A0 </span>It =
is unclear
whether federal exemptions automatically apply in a state that has =
enacted
UETA.<span style=3D"mso-spacerun: yes">=A0 </span>To avoid questions, a =
state that
enacts UETA should enact UETA exemptions to match the federal =
exemptions.<span
style=3D"mso-spacerun: yes">=A0 </span>Exemptions from UETA that match =
the federal
exemptions are not preempted.<a style=3D'mso-footnote-id:ftn103' =
href=3D"#_ftn103"
name=3D"_ftnref103" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[103]<![endif]></span></sup></span></a><span
style=3D"mso-spacerun: yes">=A0 </span><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><font face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Question:<span =
style=3D'mso-tab-count:1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span>Does
either statute contain a loophole that allows posting rather than =
sending of
notices required by law?</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>Answer</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'>:<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">E-Sign:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>No.<span style=3D"mso-spacerun: =
yes">=A0
</span>The federal statute defers to other law on whether the =
information must
be =93provided=94 or merely =93made available=94 to the consumer.<span
style=3D"mso-spacerun: yes">=A0 </span>E-Sign does not define =93send=94 =
or =93receive.=94 In
fact, the legislative history makes clear that the underlying law=92s
requirements regarding the method of delivery still apply to the =
electronic
delivery allowed by E-Sign.<a style=3D'mso-footnote-id:ftn104' =
href=3D"#_ftn104"
name=3D"_ftnref104" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[104]<![endif]></span></sup></span></a><o:p></o:p></fo=
nt></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">UETA:<span style=3D'mso-tab-count:1'>
=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 </span>Unclear.<span =
style=3D"mso-spacerun:
yes">=A0 </span>Section 15 of UETA seems to create a posting loophole by
permitting both =93send=94 and =93receive=94 to be redefined by =
agreement of the
parties, but the chair of the UETA drafting committee stated in a public =
forum
of Attorneys General consumer protection staff that UETA section 15, =
which
allows posting, was not intended to interfere with UETA section 8, which
requires sending.<span style=3D"mso-spacerun: yes">=A0 </span>UETA =
section 15(g)
may defer this question to the policy of the underlying =
statute.</o:p><o:p></font></span></p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'>&nbsp;</p>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;text-indent:-1.0in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Appendix
2<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:center 3.25in left 3.5in 4.0in =
4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended
Provisions to Accompany Any State Enactment of =
UETA<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

The following language is offered for Options
One and Two =96 UETA with a companion consumer protection statute or a =
companion
consumer protection act alone to accompany E-Sign. The text of the =
recommended
language is also set forth, without accompanying explanation, in =
Appendix
2.=A0 The discussion for Option =
3 -=A0 UETA with =93no =
displacement=94=A0 =96 sets forth suggested =
language.=A0 No language is needed for Option =
Four=A0 =96 the =93no UETA=94 approach. =
Because Option
Five is not recommended, no language is offered for it. =
<o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>1)<span style=3D"mso-spacerun: =
yes">=A0
</span>Consumer consent to engage in electronic transactions should be =
given or
confirmed <i>electronically</i> and should include =
disclosures</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 1. (a)=A0 Notwithstanding the Uniform Electronic Transactions Act, =
the use
of an electronic record to provide or make available (whichever is =
required)
information required by a statute, regulation, or rule of law, to be =
provided
or made available to a consumer shall satisfy any requirement that the =
record
be in writing, if=97<o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(1)&nbsp;<span style=3D'mso-tab-count:1'>
</span>the
consumer has affirmatively consented to such use and has not withdrawn =
such
consent;</font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]>(2)&nbsp;<span =
style=3D'mso-tab-count:1'>
</span>the
consumer, prior to consenting, is provided with a clear and conspicuous
statement&#8209;&#8209;</font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]>(i) informing the consumer of (I) =
any right
or option of the consumer to have the record provided or made available =
on
paper or in nonelectronic form, and (II) the right of the consumer to =
withdraw
the consent to have the record provided or made available in an =
electronic form
and of any conditions, consequences (which may include termination of =
the
parties' relationship), or fees in the event of such withdrawal; =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(ii) informing the consumer of whether the
consent applies (I) only to the particular transaction which gave rise =
to the
obligation to provide the record, or (II) to identified categories of =
records
that may be provided or made available during the course of the parties'
relationship;<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(iii) describing the procedures the consumer
must use to withdraw consent as provided in clause (i) and to update
information needed to contact the consumer electronically; and =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'margin-left:1.5in;tab-stops:0in .5in 1.0in =
1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(iv) informing the consumer (I) how, after
the consent, the consumer may, upon request, obtain a paper copy of an
electronic record, and (II) whether any fee will be charged for such =
copy; <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(3)&nbsp;<span style=3D'mso-tab-count:1'>
</span>the
consumer&#8209;&#8209;<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(i) prior to consenting, is provided with a
statement of the hardware and software requirements for access to and =
retention
of the electronic records; and <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(ii) consents electronically, or confirms his
or her consent electronically, in a manner that reasonably demonstrates =
that
the consumer can access information in the electronic form that will be =
used to
provide the information that is the subject of the consent; =
and&nbsp;</font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"> <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]>(4)&nbsp;<span =
style=3D'mso-tab-count:1'>
</span>after
the consent of a consumer in accordance with subparagraph (1), if a =
change in
the hardware or software requirements needed to access or retain =
electronic
records creates a material risk that the consumer will not be able to =
access or
retain a subsequent electronic record that was the subject of the =
consent, the
person providing the electronic =
record&#8209;&#8209;<o:p></o:p></font></span></p>

</div>

&nbsp;

<div class=3DSection39 style=3D"width: 643; height: 930">

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(i) provides the consumer with a statement
(I) describing the revised hardware and software requirements for access =
to and
retention of the electronic records, and (II) complying with section
1(a)(2)(iii) by describing the procedures the consumer must use to =
withdraw
consent as provided in clause (i) and to update information needed to =
contact
the consumer electronically; and with section 1(a)(2)(iv) by informing =
the
consumer (I) how, after the consent, the consumer may, upon request, =
obtain a
paper copy of an electronic record, and (II) whether any fee will be =
charged
for such copy; and<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
margin-left: 0.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(ii) again complies with this subsection. =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source:<span style=3D"mso-spacerun: yes">=A0
</span>E-Sign =A7 101(c).]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>2)<span =
style=3D'mso-tab-count:1'>&nbsp; </span>Federal
rules from E-Sign should be applied to document retention and integrity
requirements </span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 2.<span style=3D"mso-spacerun: yes">=A0
</span>(a) If a statute, regulation, or other rule of law requires that =
a
contract or other record be retained, that requirement is met by =
retaining an
electronic record of the information in the contract or other record =
that=96<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(1) accurately reflects the information set
forth in the contract or other record; and<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(2) remains accessible to all persons who are
entitled to access by statute, regulation, or rule of law, for the =
period
required by such statute, regulation, or rule of law, in a form that is =
capable
of being accurately reproduced for later reference, whether by =
transmission,
printing, or otherwise.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: E-Sign =A7 101(d)]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) Notwithstanding subsection (a), if a
statute, regulation, or other rule of law requires that a contract or =
other
record be in writing, the legal effect, validity, or enforceability of =
an
electronic record of such contract or other record may be denied if such
electronic record is not in a form that is capable of being retained and
accurately reproduced for later reference by all parties or persons who =
are
entitled to retain the contract or other =
record.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: E-Sign =A7 101(e)]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>3)</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'> <b>Oral communications
cannot be electronic records in consumer =
transactions</b><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 3.<span style=3D"mso-spacerun: yes">=A0
</span>In consumer transactions, an oral communication or a recording of =
an
oral communication shall not qualify as an electronic record. =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: E-Sign =A7101(c)(6)]<span
style=3D"mso-spacerun: yes">=A0 </span>(Note:<span =
style=3D"mso-spacerun: yes">=A0
</span>this is needed only in states that enact =
UETA)<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>4)</span></b><span =
style=3D'mso-ansi-font-size:
12.0pt'> <b>Prohibit
electronic delivery as a complete substitute for certain essential =
notices</b><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 4.<span style=3D"mso-spacerun: yes">=A0
</span>Notwithstanding the provisions of the Uniform Electronic =
Transactions
Act, the requirement that a notice be in writing is not satisfied by =
providing
or delivering any of the following types of notices electronically. This
provision applies to notices of --<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></span></p>

</div>

<div class=3DSection40 style=3D"width: 581; height: 1723">

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(a) the cancellation or termination of
utility services (including water, heat, and power); =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) default, acceleration, repossession,
foreclosure, or eviction, or the right to cure, under a credit agreement
secured by, or a rental agreement for, a primary residence of an =
individual;<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(c) the cancellation or termination of health
insurance or benefits or life insurance benefits (excluding annuities); =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(d) recall of a product, or material failure
of a product, that risks endangering health or safety; =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(e) any document required to accompany any
transportation or handling of hazardous materials, pesticides, or other =
toxic
or dangerous materials.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: E-Sign =A7103(b)(2)] <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">5)<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;
</span>Definition
of consumer transaction<span style=3D'mso-tab-count:1'>=A0=A0=A0=A0 =
</span><span
style=3D'mso-tab-count:2'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=
=A0=A0=A0=A0=A0=A0=A0 </span><span style=3D'mso-tab-count:
2'>=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0=A0 =
</span><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 5.<span style=3D"mso-spacerun: yes">=A0
</span>=93Consumer=94 means a natural person acting with respect to or =
affecting
primarily personal, family or household =
purposes.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source:<span style=3D"mso-spacerun: yes">=A0
</span>The =93primarily for personal, family or household purposes=94 =
test is
widely used in federal and state consumer statutes; however the =
=93acting with
respect to or affecting=94 language is new and slightly broader. The =
North
Carolina law uses this language, <i>see</i> N.C.G.S. =A7 =
66-308.1(4).]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>6)<span style=3D'mso-tab-count:1'> =
</span>Rules
for consumer contracts should not be changeable in form =
contracts</span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 6.<span style=3D"mso-spacerun: yes">=A0
</span>In consumer transactions, the rules and requirements set out in =
this Act
may not be changed by agreement of the parties. =
<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><span
style=3D'mso-ansi-font-size:12.0pt'><![if =
!supportEmptyParas]></span><b><span
style=3D'mso-ansi-font-size:12.0pt'>7) Permit
consumers to respond electronically to electronic notices =
<o:p></o:p></span></b></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 7.=A0
When a consumer is required to provide notice to exercise or =
preserve
the consumer's rights under any law, the consumer may exercise or =
preserve that
right in the same manner in which the consumer was provided with notice =
of that
right. <o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>8) Require
that electronic delivery have the same degree of assurance of receipt as =
does
the U.S. Mail<span style=3D"mso-spacerun: yes">=A0 =
</span></span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 8.<span style=3D"mso-spacerun: yes">=A0
</span>Notices required to be provided, sent or delivered to a consumer =
shall
be considered received only when the notice is opened, acknowledged, or
automatically acknowledged by a flag that tells the sender it has been =
opened.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">9)<span style=3D"mso-spacerun: yes">=A0 </span>Timeframes
triggered by legally required notices should start when the consumer =
opens or
acknowledges the notice<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 9.<span style=3D"mso-spacerun: yes">=A0
</span>(a) Any time period for action by or rights to a consumer which =
is
triggered by the sending or receipt of a notice is triggered by an =
electronic
notice no earlier than the earliest of these dates:<span =
style=3D"mso-spacerun:
yes">=A0 </span>the date the consumer opens the notice, the date the =
consumer
acknowledges electronic receipt of the notice; or the date on which the
technology by which the notice is sent provides confirmation that the =
notice
has been received and opened by the =
consumer.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><span
style=3D'mso-ansi-font-size:12.0pt'><![if =
!supportEmptyParas]></span><b><span
style=3D'mso-ansi-font-size:12.0pt'>10)<span style=3D"mso-spacerun: =
yes">=A0
</span>Records should be effective as against a consumer only when they =
are
received in a manner in which they can be opened, read, stored and =
printed<o:p></o:p></span></b></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 10.<span style=3D"mso-spacerun: yes">=A0
</span>An electronic record sent in a transaction with a consumer is not =
sent
to or received by a consumer until it is received by the intended =
recipient in
a manner which can be opened, read, stored and printed by that =
recipient.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">11)<span style=3D"mso-spacerun: yes">=A0
</span>Hand delivery should be preserved in face-to-face transactions if =
sales
materials are hand delivered <o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language: <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 11.=A0
When the parties to a transaction in which one of the parties is =
a
consumer are both physically present in the same location, or one party =
is
present along with the agent of another, any contract, policy, notice,
disclosure or other document provided at that time which is provided in =
a form
other than orally must also be provided in the same medium, other than =
orally,
in which sales materials are provided.=A0
This section does not prevent the additional delivery of the same
documents by other means. <o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new. Adapted from North Carolina
requirements for paper copies in face-to-face transaction, see N.C.G.S. =
=A7<span
style=3D"mso-spacerun: yes">=A0 =
</span>66-308.16(d).]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><b><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">12)<span style=3D"mso-spacerun: yes">=A0
</span>Place of contracting is the consumer=92s =
residence<o:p></o:p></font></span></b></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language: <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 12.<span style=3D"mso-spacerun: yes">=A0
</span>A transaction entered into by a consumer electronically is =
entered into
at the individual=92s place of residence. <o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: N.C.G.S. =A7 =
66-308.16(d).]<o:p></o:p></font></span></p>

</div>

<div class=3DSection42 style=3D"width: 578; height: 9385">

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'>&nbsp;</p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>13)&nbsp;<span =
style=3D'mso-tab-count:1'>&nbsp; </span>Rules
for electronic transferable records must assure consumers need not pay =
twice on
a single note.<span style=3D"mso-spacerun: yes">=A0 =
</span></span></b><span
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section. 13.<span style=3D"mso-spacerun: yes">=A0
</span>Notwithstanding the provisions of the Uniform Electronic =
Transactions
Act, the following rules apply to transferable records of transactions
involving consumers:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(a) If payment is made to a person that the
system indicates is in control of a transferable record, the obligor is
discharged to the extent of the payment.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) A transferable record remains subject to
the defenses of alteration and unauthorized signature whether or not =
those
defenses are apparent on the face of the =
record.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(c) A record does not qualify as a
transferable record if a system is unable to reliably establish the =
person
entitled to enforce the record or the system permits the creation of =
multiple
copies that appear to be authoritative =
copies.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(d) A consumer is entitled, on request and
without charge, to a printed or printable copy of a transferable record =
at any
time.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">[Source: new]<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>14) Establish
relation with federal E-Sign. </span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended Language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

Section 14.=A0=A0
The requirements of this Act are designed to supplement, not to =
modify,
limit, or supersede, the requirements of the federal Electronic =
Signatures in
Global and National Commerce Act.=A0 =
If
any part of this Act is held to be preempted by federal law, the =
provisions of
the Uniform Electronic Transactions Act shall be without further force =
and
effect with respect to transactions entered into primarily for personal,
family, or household purposes. <o:p></o:p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><font =
face=3D"Times New Roman" size=3D"3"><b><span
style=3D'mso-ansi-font-size:12.0pt'>15)<span style=3D"mso-spacerun: =
yes">=A0
</span>States that enacted UETA before E-Sign should add a coordinating
provision</span></b><span =
style=3D'mso-ansi-font-size:12.0pt'><o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Passage of UETA before E-Sign may create
confusion and litigation over 1) whether the federal consumer =
protections apply
in the state, and 2) whether the non-uniform provisions of the state=92s =
UETA
apply after E-Sign.<a style=3D'mso-footnote-id:ftn105' href=3D"#_ftn105"
name=3D"_ftnref105" title=3D""><span =
class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[105]<![endif]></span></sup></span></a>
States that have already passed UETA should consider adding the =
following
provision to avoid future litigation over whether the state=92s UETA =
remains in
effect if parts of it are preempted:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Recommended Language:<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">Section 15.<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: 0in .5in =
1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in; margin-left: 0.5'>&nbsp;</p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: 0in .5in =
1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in; margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(a) No law of this state is intended to
limit, modify, or supersede the requirements of Sections 101 (c), (d), =
or (e),
or to authorize electronic delivery of any notice of the type described =
in
Section 103(b) of the Electronic Signatures in Global and National =
Commerce
Act.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops: 0in .5in 1.0in 1.5in 2.0in =
2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in; =
text-indent: 0.5; margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; tab-stops: 0in .5in =
1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right =
6.5in; margin-left: 0.5'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3">(b) If any part of this Act is held to be
preempted by federal law, the provisions of the Uniform Electronic =
Transactions
Act shall be without further force and effect with respect to =
transactions
entered into primarily for personal, family, or household =
purposes.<o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></span></p>

<p class=3DMsoNormal style=3D'tab-stops:0in .5in 1.0in 1.5in 2.0in 2.5in =
3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in'><span
style=3D'mso-ansi-font-size:12.0pt'><font face=3D"Times New Roman" =
size=3D"3"><![if !supportEmptyParas]>&nbsp;</font></span></p>

<hr align=3Dleft size=3D1 width=3D"33%">

<![endif]>

<div style=3D'mso-element:footnote' id=3Dftn1>

<a style=3D'mso-footnote-id:ftn1'
href=3D"#_ftnref1" name=3D"_ftn1" title=3D""><![if =
!supportFootnotes]>[1]<![endif]></a>This article is =
written by Gail Hillebrand and Margot
Saunders. <o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn2>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn2'
href=3D"#_ftnref2" name=3D"_ftn2" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[2]<![endif]></span></sup></span></a>Pub. L No. =
106-229, 114 Stat. 464 (2000) (codified as
15 U.S.C. =A7=A7 7001-7006, 7021, 7031) (enacted S. 761).<span =
style=3D"mso-spacerun:
yes">=A0 </span>For a full text of the final bill, see the Congressional =
web
site: http://thomas.loc.gov/home/thomas.html and search for S. 761. =
<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn3>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn3'
href=3D"#_ftnref3" name=3D"_ftn3" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[3]<![endif]></span></sup></span></a>For information =
on the status of UETA=92s passage in the
states, see <span =
class=3DHypertext>http://www.uetaonline.com</span>.<span
style=3D"mso-spacerun: yes">=A0 </span>This site, however, does not list =
or
describe the nonuniform amendments.<span style=3D"mso-spacerun: yes">=A0 =
</span>For
the uniform text and comments, see<span style=3D"mso-spacerun: yes">=A0 =
</span><span
class=3DHypertext1>http://www.law.upenn.edu/bll/ulc/fnact99/1990s/ueta99.=
htm.</span>
For a discussion of the nonuniform variation by state, see <span
class=3DHypertext1>http://www.bmck.com/ecommerce/uetacomp.htm.</span> =
<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn4>

<a style=3D'mso-footnote-id:ftn4'
href=3D"#_ftnref4" name=3D"_ftn4" title=3D""><![if =
!supportFootnotes]>[4]<![endif]></a>Some states also =
have other laws affecting electronic
signatures or electronic records. These laws are preempted to the extent =
they
violate E-Sign=92s prohibitions against =93procedures or requirements =
that require
or accord greater legal status or effect to . . . a specific technology =
. . ..:
E-Sign =A7 102(a)(2)(A)(ii).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn5>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn5'
href=3D"#_ftnref5" name=3D"_ftn5" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[5]<![endif]></span></sup></span></a><span
style=3D'mso-special-character:footnote'><![if =
!supportFootnotes]>[5]<![endif]></span> UETA =A75.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn6>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn6'
href=3D"#_ftnref6" name=3D"_ftn6" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[6]<![endif]></span></sup></span></a>E-Sign =
=A7102(a)(2)(A).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn7>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn7'
href=3D"#_ftnref7" name=3D"_ftn7" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[7]<![endif]></span></sup></span></a>E-Sign<span =
style=3D"mso-spacerun: yes">=A0
</span>=A7102(a)(1).<span style=3D"mso-spacerun: yes">=A0 </span>E-Sign =
also permits
other state law additions.<span style=3D"mso-spacerun: yes">=A0 =
</span>E-Sign
=A7102(a)(2).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn8>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn8' href=3D"#_ftnref8" name=3D"_ftn8"
title=3D""><span class=3DMsoFootnoteReference><sup><span
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[8]<![endif]></span></sup></span></a>About the =
authors: <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Gail =
Hillebrand is Senior Attorney with the West Coast Regional Office
of Consumers Union of U.S., Inc.,=A0 =
(www.consumersunion.org) the nonprofit publisher =
of Consumer
Reports, 1535 Mission St., San Francisco, CA=A0 94103, (hillga@consumer.org).=A0 Ms. Hillebrand specializes in =
credit,
finance, e-commerce, the Uniform Commercial Code, and other consumer
issues.=A0 Consumers Union is a =
nonprofit
membership organization chartered in 1936 under the laws of the State of =
New
York to provide consumers with information, education and counsel about =
goods,
services, health, and personal finance; and to initiate and cooperate =
with
individual and group efforts to maintain and enhance the quality of life =
of
consumers.=A0 Consumers =
Union=92s income is
solely derived from the sale of Consumer Reports, its other =
publications
and from noncommercial contributions, grants and fees.=A0 In addition to reports on =
Consumers Union=92s
own product testing, Consumer Reports with approximately 4.5 =
million
paid circulation, regularly, carries articles on health, product safety,
marketplace economics and legislative, judicial and regulatory actions =
which
affect consumer welfare.=A0 =
Consumers
Union=92s publications carry no advertising and receive no commercial =
support. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

Margot
Saunders is Managing Attorney with National
Consumer Law Center, 1629 K Street NW, Washington, D.C. 20006. (Margot@nclcdc.org)=A0
Ms. Saunders specializes in consumer finance, electronic commerce =
and
energy issues.=A0 The National =
Consumer
Law Center (www.consumerlaw.org) is a =
nonprofit
organization specializing in consumer issues on behalf of low-income
people.=A0 NCLC works with =
thousands of
legal services, government and private attorneys, as well as community =
groups
and organizations, from all states that represent low-income and elderly
individuals on consumer issues.=A0 =
As a
result of daily contact with these advocates, NCLC has seen examples of
predatory practices against low-income people in almost every state in =
the
union.=A0 NCLC publishes and =
annually
supplements twelve practice treatises which describe the law currently
applicable to all types of consumer transactions.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn9>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn9'
href=3D"#_ftnref9" name=3D"_ftn9" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if !supportFootnotes]>[9]<![endif]></span></sup></span></a> =
=93Nothing in this title affects the content or timing
of any disclosure or other record required to be provided or made =
available to
any consumer under any statute, regulation or other rule of law.=94 =
E-Sign
=A7101(c)(2).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn10>

<a style=3D'mso-footnote-id:ftn10'
href=3D"#_ftnref10" name=3D"_ftn10" title=3D""><![if =
!supportFootnotes]>[10]<![endif]></a> E-Sign =A7 =
102(a)(2)(A).=A0 See 146 Cong. Rec. S 5229-5230 (daily ed. June =
15, 2000)
(statement of Sens. Hollings, Wyden and Sarbanes) (&quot;State and =
federal law
requirements on delivering documents have not been addressed in this =
Act.=A0 The underlying rules on these =
issues still
prevail.=A0 It is our view that =
records
provided electronically to consumers must be provided in a manner that =
has the
same expectation for the consumer's actual receipt as was contemplated =
when the
state law requirement for provided was passed.&quot;) It is important to =
note
the close involvement of these three Senators in the passage of E-Sign. =
Senator
Wyden was an original co-sponsor of S. 761, the bill that became E-Sign.
Senator Hollings is the ranking member (lead Democrat) on the Senate =
Commerce
Committee, through which the E-Sign bill passed before it went to the =
Senate floor.
Senator Sarbanes, the ranking member of the Senate Banking Committee, =
was
responsible for holding up the bill before it could be considered by the =
full
Senate because consumers were not adequately protected. See also =
146
Cong. Rec. H 4357-4358 (daily ed. June 14, 2000) (statement of Cong. =
Dingell)
(=93[P]rovided that the delivery methods required are electronic and do =
not
require that notices and records be delivered in paper form, States =
retain
their authority under Section 8(b)(2) of UETA to establish delivery
requirements.=94)<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn11>

<a style=3D'mso-footnote-id:ftn11'
href=3D"#_ftnref11" name=3D"_ftn11" title=3D""><![if =
!supportFootnotes]>[11]<![endif]></a> &quot;This =
title does not=A0 . . . require any person to agree to use or accept =
electronic
records or electronic signatures, other than a governmental agency with =
respect
to a record other than a contract to which it is a party.&quot; E-Sign =
=A7
101(b)(2).=A0 In fact, this =
provision
should be read to prohibit anyone from requiring another to use =
electronic
records or electronic signatures.=A0
However, E-Sign leaves open the possibility of a business simply
refusing to contract with consumers who do not wish to contract =
electronically.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn12>

<a style=3D'mso-footnote-id:ftn12'
href=3D"#_ftnref12" name=3D"_ftn12" title=3D""><![if =
!supportFootnotes]>[12]<![endif]></a> E-Sign =
contains no clear consent requirement for the
use of electronic notices when the notice is given pursuant to contract, =
rather
than to law.=A0 However, there =
are
repeated statements in the legislative history that E-Sign requires =
consent for
all electronic consumer notices.=A0 =
See
146 Cong. Rec. H4348 (daily ed. June 14, 2000) (statement of Cong. =
Taupin)
(=93This is purely voluntary=94); 146 Cong. Rec. 4349-4350 (daily ed. =
June 14,
2000) (statement of Cong. Bliley) ( =93No one will be forced into using =
or
accepting an electronic signature or record.=94); 146 Cong. Rec. =
H4757-4358
(daily ed. June 14, 2000) (statement of Cong. Dingell) (=93These =
provisions
require that consumers affirmatively consent to receive information in
electronic form.=94); 146 Cong. Rec. H4360 (daily ed. June 14, 2000) =
(statement
of Cong. Taupin) (=93Consumers must opt-in to electronic =
transactions=BC.=94); 146 Cong Rec. H4363-4364 (daily ed. June 14, 2000) =
(statement of
Cong. Morella) (=93For instance, businesses must receive the =
consumer=92s consent
before they conduct their dealings electronically.=94); 146 Cong. Rec. =
H4364
(daily ed. June 14, 2000) (statement of Cong. Inslee) (=93It will make =
sure that
only when consumers want to use electronic measures will they be =
used.=94).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn13>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn13' href=3D"#_ftnref13"
name=3D"_ftn13" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[13]<![endif]></span></sup></span></a> This should =
mean that the consumer must initiate or
respond to an email to consent or confirm consent:<span =
style=3D"mso-spacerun:
yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

I
maintain that any standard for affirmative consent must require =
consumers to
consent electronically to the provision of electronic notices and =
disclosures
that verified the consumer=92s capacity to access the information in the =
form in
which it would be sent. Such a mechanism provides a check against =
coercion,
and additional assurance that the consumer actually has an operating =
email
address and the other technical means for accessing the information.
[Emphasis added.]<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

146
Cong. Rec. S5219-5222 (daily ed. June 15, 2000) (statement of Sen.
McCain).=A0 See also 146 =
Cong. Rec.
H4352-4353 (daily ed. June 14, 2000) (statement of Cong. Bliley) (=93The =
purpose
of the reasonable demonstration provision is to provide consumers with a =
simple
and efficient mechanism to substantiate their ability to access the =
electronic
information that will be provided to them.=94)<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn14>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn14'
href=3D"#_ftnref14" name=3D"_ftn14" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[14]<![endif]></span></sup></span></a> UETA =
=A75.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn15>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn15'
href=3D"#_ftnref15" name=3D"_ftn15" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[15]<![endif]></span></sup></span></a>=93An oral =
communication or a recording of an oral
communication shall not qualify as an electronic record for purposes of =
this
subsection except as otherwise provided by applicable law.=94 E-Sign =A7 =
101(b)(6).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn16>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn16'
href=3D"#_ftnref16" name=3D"_ftn16" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[16]<![endif]></span></sup></span></a>E-Sign =
=A7101(d) and (e).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn17>

<a style=3D'mso-footnote-id:ftn17'
href=3D"#_ftnref17" name=3D"_ftn17" title=3D""><![if =
!supportFootnotes]>[17]<![endif]></a>Like
UETA, notices relating to wills, family law and
the UCC (other than the Statute of Frauds and Articles 2 and 2A) are =
excluded
from the application of E-Sign. E-Sign =A7 103(a).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn18>

<a style=3D'mso-footnote-id:ftn18'
href=3D"#_ftnref18" name=3D"_ftn18" title=3D""><![if =
!supportFootnotes]>[18]<![endif]></a>In addition to =
the consumer notices, E-Sign also
excludes court orders and notices, as well as official court documents =
executed
in connection with court proceedings. E-Sign =A7 =
103(b)(1).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn19>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn19'
href=3D"#_ftnref19" name=3D"_ftn19" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[19]<![endif]></span></sup></span></a> E-Sign =A7 =
103(b)(2).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn20>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn20'
href=3D"#_ftnref20" name=3D"_ftn20" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[20]<![endif]></span></sup></span></a>E-Sign =A7 =
103(c)(1).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn21>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn21'
href=3D"#_ftnref21" name=3D"_ftn21" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[21]<![endif]></span></sup></span></a>E-Sign =A7 =
103(c)(2).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn22>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn22'
href=3D"#_ftnref22" name=3D"_ftn22" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[22]<![endif]></span></sup></span></a>E-Sign =A7 =
105(b).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn23>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn23'
href=3D"#_ftnref23" name=3D"_ftn23" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[23]<![endif]></span></sup></span></a>Part III of =
this Article discusses in more detail the
scope of states=92 power to modify E-Sign, as well as the best methods =
for states
to protect consumers.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn24>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn24'
href=3D"#_ftnref24" name=3D"_ftn24" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[24]<![endif]></span></sup></span></a> For a more =
complete description of the problems and
loopholes in UETA, <i>see</i>, Gail Hillebrand, Uniform Electronic =
Transactions
Act:<span style=3D"mso-spacerun: yes">=A0 </span>Consumer Nightmare or =
Opportunity?
NCLC Reports, Summer 1999, posted at
http://www.consumersunion.org/finance/899nclcwc.htm.<o:p></o:p></font></p=
>

</div>

<div style=3D'mso-element:footnote' id=3Dftn25>

<a style=3D'mso-footnote-id:ftn25'
href=3D"#_ftnref25" name=3D"_ftn25" title=3D""><![if =
!supportFootnotes]>[25]<![endif]></a>National =
Telecommunications and Information
Administration, U.S. Department of Commerce, Falling Through the Net:
Defining the Digital Divide (July 1999) Chart II-1, page =
62.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn26>

<a style=3D'mso-footnote-id:ftn26'
href=3D"#_ftnref26" name=3D"_ftn26" title=3D""><![if =
!supportFootnotes]>[26]<![endif]></a>E-Sign also has =
a provision which explicitly states
that no one can be required to use electronic records. E-Sign =A7 =
101(b).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn27>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn27'
href=3D"#_ftnref27" name=3D"_ftn27" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[27]<![endif]></span></sup></span></a>146 Cong. Rec. =
S5219-5222 (daily ed. June 15, 2000)
(statement of Sen. McCain).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element: footnote; width: 702; height: 267' =
id=3Dftn28>

<a
style=3D'mso-footnote-id:ftn28' href=3D"#_ftnref28" name=3D"_ftn28" =
title=3D""><![if =
!supportFootnotes]>[28]<![endif]></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsection
(c)(1)(C)(ii) requires that the consumer=92s consent be electronic or =
that it be
confirmed electronically, in a manner that reasonably demonstrates that
consumer will be able to access the various forms of electronic records =
to
which the consent applies. The requirement of a reasonable demonstration =
is not
intended to be burdensome on consumers or the person providing the =
electronic
record, and could be accomplished in many ways. For example, the =
=93reasonable
demonstration=94 requirement is satisfied if the provider of the =
electronic
records sent the consumer an email with attachments in the formats to be =
used
in providing the records, asked the consumer to pen the attachments in =
order to
confirm that he could access the documents, and request the consumer to
indicate in an emailed response to the provider of the electronic =
records that
he or she can access information in the attachments. . . . The purpose =
of the
reasonable demonstration provision is to provide consumers with a simple =
and
efficient mechanism to substantiate their ability to access the =
electronic
information that will be provided to them. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3">106th
Congress, 146 Cong. Rec. H4352-4353 (daily ed., June 14, 2000) =
(statement of
Cong. Bliley).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn29>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn29'
href=3D"#_ftnref29" name=3D"_ftn29" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[29]<![endif]></span></sup></span></a>N.C.G.S. =
=A766&#8209;308.16(d).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn30>

<a style=3D'mso-footnote-id:ftn30'
href=3D"#_ftnref30" name=3D"_ftn30" title=3D""><![if =
!supportFootnotes]>[30]<![endif]></a>Part IV =
recommends a similar, but more clearly =93media
neutral=94 rule to achieve the same result. See Recommendation # =
11.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn31>

<a style=3D'mso-footnote-id:ftn31'
href=3D"#_ftnref31" name=3D"_ftn31" title=3D""><![if =
!supportFootnotes]>[31]<![endif]></a>These include =
cancellation or termination of utility
services, default, acceleration, repossession, foreclosure, eviction, or =
right
to cure agreements affecting a primary residence, cancellation of health =
or
life insurance, and recall or material failure of a product.=A0 E-Sign =A7103(b)(2). =
<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn32>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn32'
href=3D"#_ftnref32" name=3D"_ftn32" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[32]<![endif]></span></sup></span></a>UETA's section =
8(a) requires that a record be provided
in an &quot;electronic record capable of retention by the recipient at =
the time
of receipt.&quot;<span style=3D"mso-spacerun: yes">=A0 </span>There is =
no
discussion addressing the recipient's ability to accurately reproduce =
the
document later in a form that allows proof of its terms in =
court.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn33>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn33'
href=3D"#_ftnref33" name=3D"_ftn33" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[33]<![endif]></span></sup></span></a>E-Sign =
=A7101(e).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn34>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn34'
href=3D"#_ftnref34" name=3D"_ftn34" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[34]<![endif]></span></sup></span></a>Id.<o:p></o:p></=
font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn35>

<a style=3D'mso-footnote-id:ftn35'
href=3D"#_ftnref35" name=3D"_ftn35" title=3D""><![if =
!supportFootnotes]>[35]<![endif]></a>146 Cong. Rec. =
H4352-4353 (daily ed. June 14, 2000)
(statement of Cong. Bliley)=A0 =
(=93In
addition, subsection (a)(2)(B) requires that a State that utilizes =
subsection
(a)(2) to escape federal preemption must make specific references to =
this Act
in any statute, regulation or other rule of law enacted or adopted after =
the
date of enactment of this Act.=94)<o:p></o:p>

</div>

<div style=3D'mso-element: footnote; width: 705; height: 135' =
id=3Dftn36>

<a
style=3D'mso-footnote-id:ftn36' href=3D"#_ftnref36" name=3D"_ftn36" =
title=3D""><![if =
!supportFootnotes]>[36]<![endif]></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This
provision provides a potential enormous loophole for a State to prevent =
the use
or acceptance of electronic signatures or electronic records in that =
State. To
remedy this, subsection (a)(1) requires that any exception utilized by a =
State
under section 3(b)(4) of UETA shall be preempted if it is inconsistent =
with
title I or II, or would not be permitted under subsection (a)(2)(ii)
(technology neutrality).<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3">146
Cong. Rec. H4352-4353 (daily ed. June 14, 2000) (statement of Cong. =
Bliley). <o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn37>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn37'
href=3D"#_ftnref37" name=3D"_ftn37" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[37]<![endif]></span></sup></span></a>It is not clear =
whether the &quot;inconsistent&quot;
test for exemptions limits the consumer notices only to those explicitly
described in E-Sign's section 103(b), or if notices similar to and =
consistent
with these categories of notices might be covered as =
well.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn38>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn38' href=3D"#_ftnref38"
name=3D"_ftn38" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[38]<![endif]></span></sup></span></a> The =
limitations on interpretive authority in section
104(b)(2) are:<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5'><font face=3D"Times New =
Roman" size=3D"3">(2)
Notwithstanding paragraph (1),<span style=3D"mso-spacerun: yes">=A0 =
</span>.<span
style=3D"mso-spacerun: yes">=A0 </span>. . a state regulatory agency is =
preempted
by section 101 from adopting any regulation order, or guidance described =
in
paragraph (1) unless--</font></p>

<p class=3DMsoNormal style=3D'margin-left: .5in'><font face=3D"Times New =
Roman" size=3D"3"><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5'><font face=3D"Times New =
Roman" size=3D"3">(A)
such regulation, order, or guidance is consistent with section =
101;<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5; margin-right: .5in; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(B)
such regulation, order, or guidance does not add to the requirements of =
such
section; and<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5; margin-right: .5in; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(C)
such agency finds, in connection with the issuance of such regulation, =
order,
or guidance, that --<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 1in; margin-right: =
.5in'><font face=3D"Times New Roman" size=3D"3">(i)
there is substantial justification for the regulation, order, or =
guidance;<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 1in; margin-right: =
1.0in'><font face=3D"Times New Roman" size=3D"3">(ii)
the methods selected to carry out that purpose --<o:p></o:p></font></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:2.0in;margin-bottom:.0001pt'><font face=3D"Times New Roman" =
size=3D"3">(I) are
substantially equivalent to the requirements imposed on records that are =
not
electronic records; and<o:p></o:p></font></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:2.0in;margin-bottom:.0001pt'><font face=3D"Times New Roman" =
size=3D"3">(II)
will not impose unreasonable costs on the acceptance and use of =
electronic
records; and<o:p></o:p></font></p>

(iii)
the methods selected to carry out that purpose do not require, or accord
greater legal status or effect to, the implementation or application of =
a
specific technology specification for performing the functions of =
creating,
storing, generating, receiving, communicating, or authenticating =
electronic
records or electronic signatures. <o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3">Federal
and state agencies are also prohibited from reimposing any requirement =
that a
record be in a tangible printed form.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn39>

<a style=3D'mso-footnote-id:ftn39'
href=3D"#_ftnref39" name=3D"_ftn39" title=3D""><![if =
!supportFootnotes]>[39]<![endif]></a>See
discussion on this point in Part II C 2.=A0
A state's ability to avoid the application of the strictures of =
section
104 on the state's rulemaking ability depends upon whether E-Sign's =
section 101
governs electronic transactions in the state or whether UETA displaces =
E-Sign.
As the limitations in section 104 are derivative of the application of =
section
101, section 104 should not apply to a state if section 101 does not =
apply.=A0 <o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn40>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn40'
href=3D"#_ftnref40" name=3D"_ftn40" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[40]<![endif]></span></sup></span></a><i>See =
infra</i>
Part III C, Option 1.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element: footnote; width: 669; height: 648' =
id=3Dftn41>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn41' href=3D"#_ftnref41"
name=3D"_ftn41" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[41]<![endif]></span></sup></span></a>=A7102(a)<span =
style=3D"mso-spacerun: yes">=A0 </span>The
language authorizing the two approaches (UETA and companion statute) =
reads:&nbsp;</font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"> =
<o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: .5in'><font face=3D"Times New =
Roman" size=3D"3">(a) In General.&#8209;&#8209;A State statute,
regulation, or other rule of law may modify, limit, or supersede the =
provisions
of section 101 with respect to State law only if such statute, =
regulation, or
rule of law&#8209;&#8209; <o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5; margin-right: 1.0in; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(1) constitutes an enactment or adoption of the
Uniform Electronic Transactions Act as approved and recommended for =
enactment
in all the States by the National Conference of Commissioners on Uniform =
State
Laws in 1999, except that any exception to the scope such Act enacted by =
a
State under section 3(b)(4) of such Act shall be preempted to the extent =
such
exception is inconsistent with this title or title II, or would not be
permitted under paragraph (2)(A)(ii) of this subsection; or =
<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'text-indent: 0.5; margin-left: 0.5; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(2)(A) specifies the alternative procedures or
requirements for the use or acceptance (or both) of electronic records =
or
electronic signatures to establish the legal effect, validity, or
enforceability of contracts or other records, if&#8209;&#8209; =
<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 1in; margin-right: 1.5in; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(i) such alternative procedures or requirements are
consistent with this title and title II; and <o:p></o:p></font></p>

<p class=3DMsoNormal style=3D"margin-left: 1in"><font face=3D"Times New =
Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 1in; margin-right: 1.5in; =
margin-top: 0in; margin-bottom: .0001pt'><font face=3D"Times New Roman" =
size=3D"3">(ii) such alternative procedures or requirements do
not require, or accord greater legal status or effect to, the =
implementation or
application of a specific technology or technical specification for =
performing
the functions of creating, storing, generating, receiving, =
communicating, or
authenticating electronic records or electronic signatures; and<span
style=3D"mso-spacerun: yes">=A0 </span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal style=3D'margin-left: 0.5'><font face=3D"Times New =
Roman" size=3D"3">(B) if
enacted or adopted after the date of the enactment of this Act, makes =
specific
reference to this Act.<span style=3D"mso-spacerun: yes">=A0 =
</span>E-Sign =A7102(a).</font></p>

<p class=3DMsoNormal>&nbsp;</p>

<a =
style=3D'mso-footnote-id:ftn42' href=3D"#_ftnref42"
name=3D"_ftn42" title=3D""><![if =
!supportFootnotes]>[42]<![endif]></a>See 146
Cong. Rec. S 5229 =965230 (daily ed., June 15, 2000) (statement of Sens.
Hollings, Wyden and Sarbanes) (&quot;These choices for states are =
not
mutually exclusive.&quot;)<o:p></o:p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

See =
also 146 Cong. Rec. H4352-4353 (daily ed. June 14, 2000)
(statement of Cong. Bliley) ( =93[S]ome states are enacting or adopting =
a strict,
unamended version of UETA as well as enacting of adopting a companion or
separate law that contains further provisions relating to the use or =
acceptance
of electronic signatures or electronic records. Under this Act, such =
action by
the State would prompt both subsection (a)(1) . . . and =
(a)(2).=94)<o:p></o:p>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn43>

<a style=3D'mso-footnote-id:ftn43'
href=3D"#_ftnref43" name=3D"_ftn43" title=3D""><![if =
!supportFootnotes]>[43]<![endif]></a>E-Sign=92s =
legislative history, however, is replete with
statements about how E-Sign provides consumer protections. =
<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn44>

<a style=3D'mso-footnote-id:ftn44'
href=3D"#_ftnref44" name=3D"_ftn44" title=3D""><![if =
!supportFootnotes]>[44]<![endif]></a>146 Cong. Rec. =
S5229-5230 (daily ed. June 15, 2000)
(statement of Sens. Hollings, Wyden and Sarbanes).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn45>

<a style=3D'mso-footnote-id:ftn45'
href=3D"#_ftnref45" name=3D"_ftn45" title=3D""><![if =
!supportFootnotes]>[45]<![endif]></a>Patricia =
Brumfield Fry, =93A Preliminary Analysis of
Federal and State Electronic Commerce Laws UETA Online.=94=A0
http://www.uetaonline.com/docs/pfry700.html=A0 Yet, it is hard to see how a state enactment of UETA =
which
occurred prior to E-Sign could displace E-Sign. See note 35, =
supra.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn46>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn46'
href=3D"#_ftnref46" name=3D"_ftn46" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[46]<![endif]></span></sup></span></a><i>Compare
</i>E-Sign
section 104 with UETA sections 12(f) and (g).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn47>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn47'
href=3D"#_ftnref47" name=3D"_ftn47" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[47]<![endif]></span></sup></span></a> There may be =
other consumer protections that would be
desirable in connection with electronic signatures, including rules for =
loss
allocation in the event of theft or manipulation of the electronic
signature.<span style=3D"mso-spacerun: yes">=A0 </span>These rules are =
beyond the
scope of this article.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn48>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn48'
href=3D"#_ftnref48" name=3D"_ftn48" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[48]<![endif]></span></sup></span></a><i>See</i> Part =
IV,
<i>infra.</i><o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn49>

<a style=3D'mso-footnote-id:ftn49'
href=3D"#_ftnref49" name=3D"_ftn49" title=3D""><![if =
!supportFootnotes]>[49]<![endif]></a>The one =
potential protection contained in UETA that
would be lost under this approach is UETA=92s underlying requirement =
that all
electronic notices=97even those not required by law to be in =
writing=97be sent only
after there is an agreement to communicate electronically.=A0 However, UETA significantly =
undercuts this
protection by suggesting that the agreement can be inferred from =
circumstances
such as conduct.=A0 =
Unfortunately some
could argue that such conduct might be as simple as listing an email =
address in
a paper form contract.=A0 UETA =
=A7 5. <o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn50>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn50'
href=3D"#_ftnref50" name=3D"_ftn50" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[50]<![endif]></span></sup></span></a> State laws on =
electronic records or signatures, not
based on UETA should be analyzed in the same manner as non-uniform =
UETAs.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn51>

<a style=3D'mso-footnote-id:ftn51'
href=3D"#_ftnref51" name=3D"_ftn51" title=3D""><![if =
!supportFootnotes]>[51]<![endif]></a>146 Cong. Rec. =
S5229-5230 (daily ed. June 15, 2000)
(statement of Sens. Hollings, Wyden and Sarbanes).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn52>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn52'
href=3D"#_ftnref52" name=3D"_ftn52" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[52]<![endif]></span></sup></span></a>H.R. 1714, =
106th Cong., 1st Sess (1999).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn53>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn53'
href=3D"#_ftnref53" name=3D"_ftn53" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[53]<![endif]></span></sup></span></a><i>See</i> 146
Cong. Rec. H4352-4353 (daily ed. June 14, 2000) (statement of Cong. =
Bliley).<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn54>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn54'
href=3D"#_ftnref54" name=3D"_ftn54" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[54]<![endif]></span></sup></span></a> <i>See</i> =
<i>supra </i>parts III A and B.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn55>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn55'
href=3D"#_ftnref55" name=3D"_ftn55" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[55]<![endif]></span></sup></span></a>146 Cong. Rec. =
H4352-4353 (daily ed. June 14, 2000)
(statement of Cong. Bliley). <o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn56>

<a style=3D'mso-footnote-id:ftn56'
href=3D"#_ftnref56" name=3D"_ftn56" title=3D""><![if =
!supportFootnotes]>[56]<![endif]></a> In these =
states, since E-Sign is not subject to
=93reverse preemption=94 the consumer protection provisions of section =
101(c)(d)
and (e) are fully applicable. Also, unfortunately for the states, in =
those
instances where there is a conflict between E-Sign=92s provisions and =
those in UETA,
E-Sign=92s preemption should prevail. Thus, on the issue of whether the =
rule for
record retention is governed by UETA=92s sections 12(f) and (g) or by =
E-Sign=92s
sections 101 and 104, E-Sign=92s rules will apply.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn57>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn57'
href=3D"#_ftnref57" name=3D"_ftn57" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[57]<![endif]></span></sup></span></a><i>Barnett Bank =
v. Nelson</i>, 517 U.S. 25, 31 (1996). <o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn58>

<a style=3D'mso-footnote-id:ftn58'
href=3D"#_ftnref58" name=3D"_ftn58" title=3D""><![if =
!supportFootnotes]>[58]<![endif]></a>E-Sign Section =
102(a)(1) limits the states' authority
if it passes the uniform version of UETA: &quot;except that any =
exception to
the scope of such Act enacted by a State under section 3(b)(4) of such =
Act
shall be preempted to the extent such exception is inconsistent with =
this title
. . . .&quot; See supra Part III A.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn59>

<a style=3D'mso-footnote-id:ftn59'
href=3D"#_ftnref59" name=3D"_ftn59" title=3D""><![if =
!supportFootnotes]>[59]<![endif]></a> See 146 =
Cong. Rec. H4352-4353 (daily ed. June
14, 2000) (statement of Cong. Bliley) (=93The conference report provides =
that if
Federal or State regulators possessed specific rulemaking authority =
under their
organic statutes, they could use that rulemaking authority to interpret =
section
101 subject to strict conditions.=94) (Emphasis added).=A0 See supra Part III A, in discussion regarding =
E-Sign =A7
104.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn60>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn60'
href=3D"#_ftnref60" name=3D"_ftn60" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[60]<![endif]></span></sup></span></a><i>Rice v. =
Santa Fe Elevator Corp</i>., 331 U.S. 218, 230 (1947).<span =
style=3D"mso-spacerun:
yes">=A0 </span><o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn61>

<a style=3D'mso-footnote-id:ftn61'
href=3D"#_ftnref61" name=3D"_ftn61" title=3D""><![if =
!supportFootnotes]>[61]<![endif]></a>See, =
e.g.,
California Fed. Sav. &amp; Loan Ass=92n v. Guerra, 479 U.S. 272, 281 =
(1987)
(holding that the federal Pregnancy Discrimination Act did not preempt
California=92s own, more protective, anti-discrimination statute as =
employers
could comply with both and Congress did not intend the federal Act to be =
a
ceiling on benefits).=A0 =
<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn62>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn62'
href=3D"#_ftnref62" name=3D"_ftn62" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[62]<![endif]></span></sup></span></a><i>Id.
</i>(quoting
<i>Hines v. Davidowitz</i>, 312 U.S. 52, 67 (1941)). =
<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn63>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn63'
href=3D"#_ftnref63" name=3D"_ftn63" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[63]<![endif]></span></sup></span></a><i>Florida Lime =
&amp; Avocado Growers v. Paul</i>, 373 U.S. 132 (1963) (holding that the =
Federal
Agricultural Marketing Agreement Act of 1937 did not preempt =
California's
stricter standards for avocados) (quoting <i>Rice v. Santa Fe Elevator =
Corp., </i>331
U.S. 218, 230 (1947)). <o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn64>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn64' href=3D"#_ftnref64"
name=3D"_ftn64" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[64]<![endif]></span></sup></span></a><i>See
</i>146
Cong. Rec. S 5219-5222 (daily ed.. June 15, 2000) (statement of Sen. =
McCain):<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

<p class=3DMsoNormal =
style=3D'margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font face=3D"Times New Roman" =
size=3D"3">Thus, a
State enacting UETA may continue to prescribe specific delivery methods, =
so
long as there is an electronic alternative for any nonelectronic =
delivery
methods.<o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

This leaves =
the question of
how the federal legislation will affect Federal delivery requirements =
and State
delivery requirements in non-UETA states. Because our bill is silent on =
this
question, and because repeal and preemption by implication is =
disfavored, a
court or agency interpreting the legislation could reasonably conclude =
that
these Federal and State delivery requirements remain in full force and =
effect.
Indeed, this interpretation is practically compelled by the plain =
language of
the legislative text. It does however, have the potential to undermine =
one of
our key legislative objectives =96 that is, the elimination of =
unintended and
unwarranted barriers to electronic commerce. For this reason it will be
tempting to discern in this legislation some sort of plan to permit =
electronic
delivery of information whenever delivery is required by law, even when =
the law
specifies a particular method by which delivery must be made. Let me =
assure
the courts and regulators that have occasion to read these words that =
this
legislator had no such plan. (Emphasis added.)<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn65>

<a style=3D'mso-footnote-id:ftn65'
href=3D"#_ftnref65" name=3D"_ftn65" title=3D""><![if =
!supportFootnotes]>[65]<![endif]></a>Patricia =
Brumfield Fry, =93A Preliminary Analysis of
Federal and State Electronic Commerce Laws UETA Online.=94=A0
http://www.uetaonline.com/docs/pfry700.html=A0 Yet, it is hard to see how a state enactment of UETA =
which
occurred prior to E-Sign could displace E-Sign, (Id.), and the
legislative history of E-Sign also is to the contrary.=A0 See 146 Cong. Rec. =
H4352-4353 (daily
ed. June 14, 2000) (statement of Cong. Bliley).<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn66>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn66' href=3D"#_ftnref66"
name=3D"_ftn66" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[66]<![endif]></span></sup></span></a><i>See =
id.:<span style=3D"mso-spacerun: yes">=A0 =
</span></i><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

As stated =
above, subsection
(a)(2) is designed to cover any attempt except a strict enactment or =
adoption
of UETA (which would be covered by subsection (a)(1)), by a State to =
escape
Federal preemption by enacting or adopting specific alternative =
procedures or
requirements for the use or acceptance of electronic signatures or =
records. . .
Thus a regulation or other rule issued to implement a State=92s =
enactment or
adoption of a clean UETA would fall under and be tested against the =
standards
contained in (a)(2) if it strays in any manner from the strict, =
specific
text of UETA, as reported and recommended for enactment by NCCUSL.
(Emphasis added.) <o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn67>

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'><font face=3D"Times =
New Roman" size=3D"3"><a style=3D'mso-footnote-id:ftn67'
href=3D"#_ftnref67" name=3D"_ftn67" title=3D""><span =
class=3DMsoFootnoteReference><sup><span style=3D'mso-special-character: =
footnote'><![if =
!supportFootnotes]>[67]<![endif]></span></sup></span></a> <i>See =
supra</i> Part III A.<o:p></o:p></font></p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn68>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><a =
style=3D'mso-footnote-id:ftn68' href=3D"#_ftnref68"
name=3D"_ftn68" title=3D""><span class=3DMsoFootnoteReference><sup><span =
style=3D'mso-special-character: footnote'><![if =
!supportFootnotes]>[68]<![endif]></span></sup></span></a><i>See
</i>146
Cong. Rec. 4349-4350 (daily ed. June 14, 2000) (statement of Cong.
Markey):<span style=3D"mso-spacerun: yes">=A0 =
</span><o:p></o:p></font></p>

<p class=3DMsoNormal><font face=3D"Times New Roman" size=3D"3"><![if =
!supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></font></p>

In addition =
this legislation
also safeguards the consumer protection policies that have historically =
served
to adequately inform consumers of potentially life-changing events or =
safety
issues. The conference report wisely requires written notices for any =
notice
dealing with court orders and official court documents =96 including =
legal briefs
and court pleadings, any notice concerning the cancellation of utility =
services
such as water, heat or power service, for foreclosure or eviction =
notices. It
also would require the continuation of written notices for the =
cancellation or
termination of health insurance or benefits or life insurance =
benefits.<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn69>

<a style=3D'mso-footnote-id:ftn69'
href=3D"#_ftnref69" name=3D"_ftn69" title=3D""><![if =
!supportFootnotes]>[69]<![endif]></a>Uniform =
Computer Information Transactions Act.=A0 For information about the =
difficulties UCITA
presents for consumers, see Jean Braucher, The Uniform Computer =
Information
Transactions Act (UCITA): Objections From The Consumer Perspective, =
slated for
publication in=A0 Vol 5. No. 6, =
Cyberspace
Lawyer (Sept. 2000), and posted at:=A0=A0=A0=A0=A0
http://www.ftc.gov/bcp/workshops/warranty/comments/brau=
cherjean.pdf
=A0<o:p></o:p>

</div>

<div style=3D'mso-element:footnote' id=3Dftn70>

<a style=3D'mso-footnote-id:ftn70'
href=3D"#_ftnref70" name=3D"_ftn70" title=3D""><![if =
!supportFootnotes]>[70]<![endif]></a>At one time, =
UETA and UCITA were parallel with respect
to some issues other than agreement, but UETA was improved somewhat for
consumers before it was adopted by NCCUSL, while those same improvements =
were
not added to UCITA. <o:p></o:p>

</div>

<div style=3D'