Although the e-signature law doesn't force consumers to accept electronic documents from businesses, it poses a potential disadvantage for low-tech citizens by allowing businesses to collect additional fees from those who opt for paper.

Contracts That Must Be on Paper

To protect consumers from potential abuses, electronic versions of the following documents are invalid and unenforceable:

• wills, codicils, and testamentary trusts
• documents relating to adoption, divorce, and other family law matters
• court orders, notices, and other court documents such as pleadings or motions
• notices of cancellation or termination of utility services
• notices of default, repossession, foreclosure, or eviction
• notices of cancellation or termination of health or life insurance benefits
• product recall notices affecting health or safety, and
• documents required by law to accompany the transportation of hazardous materials.

These documents must be provided in traditional paper and ink format.

Consumer Concerns

Although it is expected that secure methods of electronic signatures will be become as commonplace and safe as credit cards, some consumer advocates are concerned that if a consumer uses an insecure signature method (such as a scanned image of a handwritten signature), identity thieves could intercept it online and use it for fraudulent purposes.

Federal Law Versus State Law

Some states have adopted the Uniform Electronic Transactions Act (UETA), which establishes the legal validity of electronic signatures and contracts in a similar manner as the federal law. If a state has adopted the UETA, or a similar law, the federal electronic signature law won't override the state law. But if a state has adopted a law that is significantly different than the federal law, it will be trumped by the federal law. This ensures that electronic contracts and electronic signatures will be valid in all states, regardless of where the parties live or where the contract is executed.

Government Filings

As for the government, transactions between citizens and the federal government were addressed in 1998's Government Paperwork Elimination Act (GPEA), which created requirements and incentives for the federal government to make electronic versions of their forms available online. A good deal of progress has been made, as many online consumer transactions -- such as paying taxes and registering trademarks -- are now available from the feds. State governments are slowly catching up, as some states now allow you to register your business online.