What is the effect of the enactment of E-Sign?

The effect of the enactment of E-Sign is that it has legalized electronic records and electronic signatures. E-Sign, formally known as the Electronic Signatures in Global and National Commerce Act, was established to facilitate the use of electronic signatures and records in commercial transactions. This legislation provides that electronic signatures carry the same weight and legal effect as handwritten signatures, allowing individuals and businesses to operate more efficiently using digital means.

By recognizing the validity of electronic signatures, E-Sign fosters a more streamlined process for transactions, making them easier and faster without compromising legal integrity. This shift not only supports convenience but also encourages the growth of digital communication and commerce, which is essential in today's increasingly digital society.

In contrast, options that suggest bans on electronic records and signatures or the granting of patents for electronic signatures misconstrue the primary purpose and outcomes of E-Sign. Additionally, while the act addresses the legality of electronic signatures and records, it doesn’t specifically regulate how these records can be stored; instead, it primarily focuses on their validity and enforceability.