Question

Electronic or digital signatures for contractual purposes:

A. are invalid in the U.S. because the UCC expressly prohibits them.
B. have been given the same legal status as written ones by the European Union (EU), but must be approved by each EU government before going into effect.
C. are valid in all member countries of the United Nations.
D. are invalid because there is currently no technological means available to authenticate signatures.
E. are valid in the U.S., Canada, and Mexico under the rules of origin of the NAFTA agreement.

Answer 1

Electronic or digital signatures have been recognized as valid for contractual purposes in the United States and the European Union under specific laws like ESIGN, UETA, and eIDAS, but there is no uniform recognition across all UN member countries.

Step-by-step explanation:

The question asks whether electronic or digital signatures are valid for contractual purposes in different jurisdictions. Contrary to option A, electronic signatures are indeed valid in the United States. The U.S. has enacted federal law, known as the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) at the state level that recognizes the legality of electronic signatures. Option B suggests that electronic signatures have the same legal status as handwritten signatures in the European Union and require individual EU government approval.

This is correct to an extent; the EU has a regulation called eIDAS (Electronic Identification, Authentication and Trust Services) which provides a clear framework for electronic signatures, but member states do not need to individually approve each signature for them to be effective. Option C is incorrect as there is no comprehensive legal framework for digital signatures recognized by all United Nations member countries. Option D is false; technology exists that can authenticate electronic signatures reliably.

Lastly, Option E is misleading as the NAFTA agreement's rules of origin do not pertain to the validity of electronic signatures, but rather to trade between the U.S., Canada, and Mexico. The correct answer would be that electronic and digital signatures are legally recognized and can be as valid as traditional handwritten signatures under specific legislation in various countries, including all members of the European Union.