LML4810 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)

LML4810 PORTFOLIO MEMO - MAY/JUNE 2023 - SEMESTER 1 - UNISA - (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!) GENERAL BACKGROUND TO THE FACTUAL SCENARIO Rashid has just been awarded a doctorate degree in genetic biology from the University of Cape Town. In order to partially fund his study fees, Rashid started a successful business selling DNA testing kits to clients across the Western Cape province. Rashid has decided to expand his business into a fully online business in order to enable him to sell and distribute DNA testing kits throughout South Africa and internationally. Rashid approaches you for legal advice in setting up his new business. QUESTION 1 Rashid wants to buy an accounting platform and a courier management system from an online store called One Stop Shop Programming’s website. In the process of buying the software, he notices on the terms and conditions of One Stop Shop Programming’s website that there are no refunds for anything purchased via the website. The contract is concluded by clicking on an icon stating: “Submit Order”. Rashid is then routed to a web page that states that he has successfully purchased the software packages. Both the software packages are sent automatically as soon as the order is confirmed. After receipt of both the software packages on his system, it is evident that both are defective and not in working order. In answering the questions below, you should substantiate your answers with authoritative sources. Advise Rashid on the following: (a) Whether the requirements of an electronic signature have been met by clicking on the icon “submit order”. (10) (b) Does South African law recognise this type of transaction, and what are the legal implications thereof? (10) (c) Will Rashid be able to cancel the contract? (5) [25] QUESTION 2 Rashid has compiled a database of all his clients in the Western Cape. He now wants to inform them about his new venture as well as add new clients and potential business contacts from other provinces in South Africa and internationally. Advise Rashid on the requirements he needs to meet in order to enjoy copyright protection of his databases. In your answer, refer to the positions in other jurisdictions and substantiate your answer with reference to relevant case law. [25] QUESTION 3 In assisting Rashid regarding legal compliance in setting up the platform for his new website, you are expected to do the following: (a) Explain to Rashid what a domain name is and what the relationship between domain names and trade marks is. (10) (b) Explain to Rashid what the use of AdWords entails and what the possible legal implications from a trade mark law perspective are. QUESTION 4 Rashid is a citizen of Morocco who holds a South African Permanent Residence status. Rashid’s website is hosted by a server based in Egypt because of Egypt’s stable electricity network. Rashid wants to undertake an African continental tour throughout the next year, during which he would like to meet potential new clients to whom he aims to sell his DNA testing kits. Rashid is unsure about the tax implications of the expansion of his business. Advise Rashid fully on what the term permanent establishment (PE) on the Internet means. In your answer you should explain the following: (a) Explain what the term PE means. (5) (b) Explain whether the following constitutes a PE on the Internet: a website; a server; a dependent agent. (20) [25] Total: [100]