EDI between trading partners can be interpreted as legally binding contracts. For instance, when a transaction is initiated by one of the trading partners, such as a purchase order, it constitutes an “offer”. In turn, if a trading partner agrees to supply the merchandise requested, it normally is considered “acceptance” of the offer. Thus, interpretively, under the U.S. Uniform Commercial Code a contract between buyer and seller is established.
Regarding effective security, two topics have gained notoriety: managerial ease and portable trust. Managerial ease focuses on making the security infrastructure’s integration and utilization with various applications transparent to enable adoption by trading parties. Portable trust supports telecommunication links with external parties through faith in resource authorizations and reliable message delivery. Inadvertent data loss during transmission reduces the cost savings generally associated with EDI deployment. Furthermore, message integrity issues can jeopardize connectivity status.
“View Part I of the Electronic Commerce series here“