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Pepperdine Law Review

Commercial Access Contracts and the Internet: Does the Uniform Computer Information Transactions Act Clear the Air with Regard to Liabilities when an On-Line Access System Fails?

Morgan Stewart

 

Abstract

This Comment examines who should bear the risk of liability for a breach of service, whether the breach is due to negligence, overloading of the server, or simply failure to provide continued service in a Web Presence Provider-business customer relationship. It will proceed to discuss whether an Internet Service Provider should be able to disclaim liability for consequential damages when the risk of monetary loss on the Internet is so great. Part II initially discusses why commerce on the Internet is preferable and should not be rejected merely because there is the possibility of interruption of connection to consumers. Additionally, it will discuss the relevant background of both the contractual framework in addressing Internet Service Providers and commercial businesses as well as the difficulty of the Internet as a growing medium and the specialization business entities face. Part III analyzes the relevant law, and after searching for an applicable framework, explores the idea that the proposed Uniform Commercial Information Transactions Act ("UCITA"), may apply to this particular situation. Part III also discusses why the UCITA may not apply due to the express language of the proposed code section. Part IV analyzes the possible remedies that may be implemented in the case of breach by either party. Part V explores the possible impact that the UCITA would have on the relevant parties when it is enacted. The comment then concludes with a brief discussion of the relevant issues in Part VI.