The Perspective of Indonesian Law on E-Commerce: Validity, Liability and Dispute Settlement

In the era of globalization, the fast development of technology enables people to complete almost all activities with technological assistance. One of the activities is commerce. Commercial activity by means of electronic media is called e-commerce. Like ordinary commerce, e-commerce requires contract to order rights and obligations of parties involving in transaction. This study aims to discuss and to elaborate legal construction of e-commerce in addition to the liability of merchant for any loss resulted. In practice, only few consumers fully understand contents of contract. Many of them experience losses either because of their negligence in understanding contract or the fraudulent actions of business actors. This study employed legal research method with conceptual and statute approach. The study reveals that e-commerce is a form of e-contract. In addition, e-commerce is constructed as sales and purchase agreement since it arranges subjects, objects, and primary obligations of the pertinent parties. On the subject of liability of merchants, they must be liable if they were revealed violating contract and taking their consumers into loss.