ESIGN
&
C O M P L I A N C E
CHANGING
LANDSCAPE
As contract
management
transitions into a
paperless world,
documents must
remain compliant with
government
regulations. Many
companies are seeking
online solutions to
eliminate paper
systems to keep up
with the transition.
This opens questions
pertaining to the
legitimacy and
enforceability of online
contracts. Fortunately,
strong precedents exist
relating to the validity
of online contracts and
specific guidelines
must be followed.
The passage of
Electronic Signatures
in Global and
National Commerce
Act (ESIGN) and the
adoption of the
Uniform Electronic
Transactions Act
(UETA) solidified the
legal landscape for
use of electronic
records and
electronic signatures.
ESIGN and UETA
establish that
electronic records
and signatures carry
the same weight and
legal effect as paper
documents and
handwritten
signatures.
ESIGN
& UETA
ESIGN
UETA
UETA
Scope
Choosing
Electronic
Signatures
In choosing whether to use
electronic signatures,
companies should:
Evaluate the
effectiveness of the
electronic signature
method
Document
Management
Solutions
Noncompliance
Consequences
In determining whether
electronic records or electronic
signatures may be sufficiently
reliable for a particular purpose,
one should consider the state and
federal laws that apply to the
transactions, the relationships
between the parties, the value of
the transaction, the risks, and the
cost of management and
preservation of electronic
records.
Violations of either ESIGN or
UETA can have severe
consequences and a negative
impact on business. Not only
could people be incarcerated but
very large fines can be imposed
for noncompliance.
203.789.0889
www.square-9.com
Square 9 offers ESIGN and UETA compliant document solutions for your business
needs. Its award-winning SmartSearch solution improves inefficient paper processes to
automate and structure your document management needs. Square 9s GlobalForms,
allows for quick and easy creation of customized web based forms as well as the ability
to apply electronic signatures. Contact Square 9 today to learn more.