Analysis Of Effectiveness Of The Law Of Agency On Electronic Commerce In Zambia: A Study Of Zampost- Ndola Branch

ABSTRACT

The law of agency is a area of commercial law dealing with a set of contractual, quasi- contractual and non-contractual fiduciary relationships that involve a person called the agent in this case Zambia Postal Services Corporation (Zampost), that is authorized to act on behalf of another person called the principal in this case a customer to create legal relations with a third party. Succinctly it may be referred to as the equal relationship between Zampost and a customer whereby the customer, expressly or implicitly, authorizes Zampost to work under the customers control and his/her behalf .Zampost is, thus, required to negotiate on behalf of the customer or bring the customer and the third party into contractual relationship of electronic commerce (e-commerce).

The reciprocal rights and liabilities between the customer and Zampost reflect commercial and legal realities .Zampost as an e-commerce agent often relies on customers to conduct its business .In the case of Zampost, being a corporation it is a fictions legal person, it can only act through human agents. Zampost is bound by the commerce contracts entered into by its human agents, so long as the human agents perform their responsibilities within the scope of the agency. It is not very clear how effective the Zampost agency services on e-commerce in Ndola District of the Republic of Zambia are.

Customers on e-commerce may rely in good faith on the representations by Zampost human agents and it is not always cost effective to check whether human agents have authority to act on behalf of Zampost. Consequently, if Zampost human agents acted without authority, Zampost will generally be liable. The perceptions of Zampost customers on e-commerce cannot be overemphasized in the light of inadequate legislation and regulatory framework on e-commerce in Zambia coupled by the increase in cyber crimes.

KEY CONCEPTS: Law of Agency, Effectiveness, Electronic Commerce, customer, Zampost, Agency services, perceptions, third parties, legislation and cyber crimes.

TABLE OF CONTENTS

Declaration of authorship i 

Dedication ........... .......... ii Acknowledgements........... iii 

Table of Contents .. iv 

List of figures and tables....... vii 

List of Acronyms .. ix 

Abstract .... x

CHAPTER ONE: INTRODUCTION TO THE STUDY

1.0. Introduction ........ 1 1.1. 

Historical background of Postal Services in Zambia.. 2 1.2. 

Statement of the problem ............ 3 

1.3. Research questions ........ 5 

1.4. Objectives of the study .. 5 

1.5. Significance of the study ............ 5 

1.6. Scope of the study ........ 5 

1.7. Chapter Organization.... 6 

1.8. Conclusion...... 6

CHAPTER TWO: LITERATURE REVIEW

2.0.Introduction ..... 7 

2.1. Development of the internet and information technology........ 7 

2.2. The development of e-commerce... 8 

2.3. Zambia’s challenges....... 11

2.3.1. Service provider’s challenges......... 12

2.3.2. Consumer challenges........ 13

2.3.3. Regulatory challenges..... 14

2.4. Zampost as an agent of e-commerce............ 15 

2.5. Customers perceptions on electronic commerce ........ 17

2.6. Formation of electronic commerce contracts . 20 

2.7. Jurisdiction and enforceability of e-commerce contracts ......... 21 

2.8. Electronic commerce contracts and cyber crimes ...... 23 

2.9. Operational definition of key terms  28 

2.10. Conclusion .. 29 

CHAPTER THREE: THEORETICAL AND CONCEPTUAL

FRAMEWORK

3.0.Introduction ..... 30 

3.1. Theoretical framework.... 30 

3.1.1. Agency theory .. ............ 30 

3.1.2. Electronic Commerce models ........... .. 34 

3.1.3. Perceived usefulness and e-commerce adoption....... 34 

3.1.4. Innovation research: exploitation and exploration ... 35 

3.1.5. Independent and dependent variables...... 36 

3.2. Conceptual model.......... 37 

3.3. Conclusion .......... 37

CHAPTER FOUR: RESEARCH METHODOLOGY

4.0.Introduction ....... 38 

4.1. Research Design 38 

4.2. Population of study ........ 38 

4.3. Sample size ..... 38 

4.4. Sample method and procedure..... 39 

4.5. Data collection and source ............ 39 

4.6. Data analysis ..... 39 

4.7. Research hypothesis ...... 39 

4.8. Ethical consideration of the study . 39 

4.9. Conclusion ........ 40

v

CHAPTER FIVE: FINDINGS, DATA ANALYSIS AND DISCUSSION

5.0.Introduction .. 41 

5.1. Data analysis and findings .... 41 

5.1.1. Gender of respondents .... 41 

5.1.2. Age of respondents .......... 41 

5.1.3. Highest education level of respondents...... 42 

5.1.4. Electronic Commerce transanction sought by respondents at Zampost ....... 42 

5.2. Perceptions of Zampost customers on e-commerce relating to cyber crimes ....43 

5.3. Effectiveness of the law of agency on e-commerce at Zampost............45 

5.4. The legal challenges that are faced by Zampost on e-commerce transactions... 46 

5.5. Conclusion . 49

CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS

6.0.Introduction... ...... 50 

6.1. Conclusion. ....... 50 

6.2. Recommendations ...... 51 BIBLIOGRAPHY.......... 53

APPENDICES