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E-Business 101 Parts 1 and 2: Taxonomy and Anatomy


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Continuing advancements in communications and software technologies have enabled existing businesses to attract and engage customers in remarkable new ways while creating opportunities for new businesses that did not previously exist. In just a few short years, the World Wide Web (the "Web") has revolutionized how customers locate information and make purchasing decisions, as well as how businesses attract, interact with, and retain customers. The Web enables instant gratification and convenience for anyone who can access the resources connected to it.

Technological advances routinely create new legal problems and opportunities. This was true with the telephone, television, and the photocopier. The Web is no exception. The new business paradigm enabled by the Web has also created new legal problems and opportunities for solution. The legal issues will effect not only the owners and operators of "dot.coms," but also the traditional businesses that use web sites to transact or promote their businesses or that conduct transactions with e-businesses.

This Article is the first in a series that  to help readers recognize the legal issues related to e-commerce and deal with them proactively. In this first part, different classifications of Web-based businesses are explored (the taxonomies) and the various types of assets of web-based businesses are examined (the anatomy).

While no clear consensus exists as to what constitutes an "e-commerce" business or "e-business," one general characteristic is that an e-business must operate a web site. The web site might be the sole vehicle of communication with the business' customers. Alternatively, the web site might be used in conjunction with a traditional "bricks and mortar" store operated by the business. There are many ways in which a web-based business or a business' web site may be classified, each of which provides a different outlook on the legal needs of the business.

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More By Myles H. Alderman, Jr.

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