Are e-signatures legal, admissible, and enforceable in the United States?
Electronic Signatures in Global and National Commerce Act (ESIGN), which can be accessed here.
There is a uniform state law, the Uniform Electronic Transactions Act (UETA), which can be accessed here.
UETA governs electronic signatures at the state level and is in effect with slight variations in 48 states. Illinois and New York have electronic signature acts similar in most respects to UETA.
In Barwick v. GEICO 1, the Arkansas Supreme Court held that an electronic signature on an electronically generated record met the requirement of the Arkansas insurance statute requirement that a rejection of no-fault coverage must be "in writing".
In Newton v. American Debt Services, Inc.2 the federal court in California, citing ESIGN, found that the plaintiff was bound by a contract executed using an electronic signature. The court went on to refuse to enforce the arbitration clause on the grounds of unconscionability.
Are there certain documents that cannot be e-signed in the United States?
ESIGN and UETA's recognition of the validity of electronic signatures does not apply to the following types of documents:
- wills, codicils, and testamentary trusts;
- adoption, divorce, and family law documents;
- court orders, notices, and official court documents;
- cancelation/termination of life or health insurance benefits;
- product recalls; and
- transportation of hazardous materials;
Each state may also add additional documents where an electronic signature would not be recognized.
Does local regulation govern the use of digital IDs and/or certificates for e-signatures in the United States?
Local laws do not govern use of digital certificates.
“Qualified Electronic Signatures” are not required. Both ESIGN and UETA are technology-neutral in their approach to the validity of electronic signatures.
*DISCLAIMER: The information contained in this guide is for information purposes only, provided as is as of the date of publication and should not be relied upon as legal advice or to determine how the law applies to your business or organization. It is recommended that you seek guidance from your legal counsel with regard to law applying specifically to your business or organization and how to ensure compliance. OneSpan does not accept liability for the contents of these materials or for third parties materials.
Last updated: November 2020