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Written specifically for legal practitioners and students, this book examines the
concerns, laws and regulations involved in electronic commerce.
In just a few years, commerce via the World Wide Web and other online
platforms has boomed, and a new field of legal theory and practice has emerged.
Legislation has been enacted to keep pace with commercial realities, cyber-
criminals and unforeseen social consequences, but the ever-evolving nature of
new technologies has challenged the capacity of the courts to respond effectively.
This book addresses the legal issues relating to the introduction and adoption
of various forms of electronic commerce. From intellectual property, to issues of
security and privacy, Alan Davidson looks at the practical challenges for lawyers
and commercial parties while providing a rationale for the underlying legal
theory.
Alan Davidson
CAMBRIDGE UNIVERSITY PRESS
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore,
São Paulo, Delhi, Dubai, Tokyo
Published in the United States of America by Cambridge University Press, New York
www.cambridge.org
Information on this title: www.cambridge.org/9780521678650
© Alan Davidson 2009
Acknowledgements page xv
Table of cases xvii
Table of statutes xxv
v
vi CONTENTS
Writing 36
Australian provisions 37
New Zealand 39
Signatures 39
Australian provisions 40
New Zealand provisions 45
Production of documents 47
Consent 48
Example 50
Other countries’ provisions 51
Comment 52
Retention of information and documents 52
Retention in paper form 53
Retention in electronic form 53
Time and place of dispatch and receipt of electronic
communications 54
Time of dispatch 55
Time of receipt 56
Acceptance by electronic communication and the postal acceptance rule 57
Place of dispatch and place of receipt 61
Attribution of electronic communication 61
Originals 63
Electronic Case Management System 63
Comment 63
Further reading 64
5 Electronic signatures 74
Traditional signatures 74
Modern signatures 77
Electronic signing 77
Acceptance at face value and risk 79
Functions of signatures 79
Electronic Transactions Acts 80
‘Electronic signature’ defined 82
Uses 83
Security of electronic signature 83
Digitised signatures 84
Digital signatures 84
CONTENTS vii
Queensland 226
Western Australia 226
South Australia 227
Tasmania 227
Northern Territory 227
Australian Capital Territory 228
Abuses 228
Cookies 228
Web bugs 231
International Covenant on Civil and Political Rights (ICCPR) 232
Data protection 232
Review 233
Personal privacy 235
New Zealand 240
United States 241
Final comment 242
Further reading 242
16 Cybercrime 267
The Commonwealth Criminal Code and computer crime 268
Telecommunications services 270
Child pornography 271
Assisting suicide 273
Police and security powers 273
Investigative powers 274
State legislative offences relating to computers 275
New Zealand 276
Child pornography – international 277
Internet gambling 278
The problem 278
International Gambling Act 2001 (Cth) 279
Comment 280
Cyberstalking 280
International approach to cybercrime 282
Spam 283
The problem 283
Spam Act 2003 (Cth) 284
New Zealand response 289
US response 290
EU response 290
Criticisms 291
National Do Not Call Register 291
xii CONTENTS
Index 395
Acknowledgements
On one analysis electronic commerce emerged in mid 19th century with the
invention of the telegraph and telephone. But it was not until the creation and
growth of computers and the internet, and the development of this realm called
cyberspace, that the legal system faced real challenges in private, public and
criminal law. Speaking about cyberspace, ‘the new home of the mind’, John
Perry Barlow declared:
Ours is a world that is both everywhere and nowhere, but it is not where bodies
live . . . In our world, whatever the human mind may create can be reproduced and
distributed infinitely at no cost. The global conveyance of thought no longer requires
your factories to accomplish. We will create a civilization of the Mind in Cyberspace.
May it be more humane and fair than the world your governments have made before.1
In the past two decades many of the legal challenges have been answered. The
milestones in the past 20 years have been many. Some of the major ones are the
global content of the internet (in Reno v American Civil Liberties Union 521 US 844
(1997)), jurisdiction in cyberspace (in Dow Jones v Gutnick [2002] HCA 56), and
the functional equivalence of writing and signatures (by the UNCITRAL Models
Law of Electronic Commerce and the Electronic Transaction Acts). Other areas
that have been dealt with include the regulation of spam, internet gambling,
identity theft, digital privacy, email and cybersquatting.
My interest in this area arose some three decades ago when I undertook a
degree in computing science while practising law. At the time the combination
was most unusual, but the world of cyberspace and the regulation of that world
have now become part of the landscape. The aim of this work is to define the law
relating to electronic commerce within Australia as determined by the legislature,
judicial interpretations and the common law. It is intended for legal practitioners
and students of what has broadly become known as cyberlaw.
I would like to thank my colleagues Russell Hinchy, Paul O’Shea and my
research assistant William Hickey for their feedback, suggestions and assistance.
I would especially like to thank my assistant and colleague Garth Wooler for his
xv
xvi ACKNOWLEDGEMENTS
Dr Alan Davidson
Senior Lecturer, TC Beirne School of Law University of Queensland
Solicitor and Barrister
April 2009
Table of Cases
A & M Records Inc. v Napster Inc., 239 F. 3d 1004 (9th Cir 2001) 102
Adams v Lindsell (1818) B & Ald 681 57
ADT Services AG v ADT Sucks.com WIPO Case No D2001-0213 167
Airways Corporation of NZ Ltd v Pricewaterhouse Coopers Legal [2002]
NSWSC 138 192
Allocation Network Gmbh v Steve Gregory (allocation.com) WIPO
No D2000-0016 175
American Civil Liberties Union v Reno 929 F. Supp. 824 (1996) 8
APRA v Canterbury-Bankstown League Club Ltd [1964] NSWR 138 90
APRA v Commonwealth Bank of Australia (1993) 25 IPR 157 90
Architects (Australia) Pty Ltd (trading as Architects Australia) v Witty Consultants
Pty Ltd [2002] QSC 139 156
Arica Institute Inc. v Palmer (1992) 970 F. 2d 1067 93
Armstrong v Executive of the President 1 F. 3d 1274 (DC Cir 1993) 309
Armstrong v Executive of the President 810 F. Supp. 335 (1993) 309
Arthur J S Hall & Co v Simmons [2000] UKHL 38, [2002] 1 AC 615 6
Athens v Randwick City Council [2005] NSWCA 317 118
Atlantic Underwriting Agencies Ltd v Compagnia di Assicuranzione di Milano SpA
[1979] 2 Lloyds Rep 240 184
Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001]
HCA 63 236, 240
Australian Broadcasting Corporation v Waterhouse (1991) 25 NSWLR 519 200, 213
Australian Communications and Media Authority v Clarity1 Pty Ltd [2006]
410 FCA 286
Australian Competition and Consumer Commission v Chen [2003] FCA 897 159
Australian Competition and Consumer Commission v Purple Harmony Plates Pty
Limited [2001] FCA 1062 193
Australian Football League v Age Company Ltd [2006] VSC 308 203
Australian Railways Union v Victorian Railways Commissioners (1930)
44 CLR 319 186
Australian Stock Exchange Ltd v ASX Investor Services Pty Ltd (QSC 1999) 153
Autodesk Inc. v Dyason No. 1 (1992) 173 CLR 330 93
Autodesk Inc. v Dyason No. 2 (1993) 176 CLR 300 93, 94, 96
AV et al v IParadigms LLC Company Civ Act. No 07-0293 (ED Va 2008) 69
Ballas v Tedesco 41 F. Supp. 2d 531 32
Barrett v Rosenthal (2006) 40 Cal 4th 33, 146 P 3d 510 209
Bensusan Restaurant Corp. v King 937 F. Supp. 296 (SD NY 1996) 195
Berezovsky v Michaels [2000] UKHL 28 212
xvii
xviii TABLE OF CASES
Berlei Hestia Industries Ltd v Bali Co. Inc. (1973) 129 CLR 353 113
Bernstein v JC Penny Inc. 50 USPQ 2d 1063 (CD Cal 1998) 115
Bixee v Naukri (2005) IA no 9733/2005 115
Blackie & Sons Ltd v Lothian Book Publishing Co. Pty Ltd (1921) 29 CLR 396 93
Blue Cross and Blue Shield Association and Trigon Insurance Company v. Interactive
Communications Inc. WIPO Case No. D2000-0788 175
Blue Sky Software Corp v Digital Sierra Inc. WIPO Case No. D2000-0165 166
Bosley Medical Institute Inc. v Kremer 403 F. 3d 672 (9th Cir 2005) 168
Braintech Inc. v Kostiuk (1999) 63 BCLR (3d) 156 194
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH [1983] 2 AC 34
30, 57, 58, 60
British Petroleum Co. Ltd’s Application (1968) 38 AOJP 1020 121
British Telecom v One in a Million [1999] 1 WLR 903 153
Bruce Springsteen v Jeff Burgar and Bruce Springsteen Club WIPO
Case No. D2000-1532 171
Butera v Director of Public Prosecutions for the State of Victoria (1987)
164 CLR 180 298, 299
BWT Brands Inc and British American Tobacco (Brands) Inc. v NABR WIPO Case
No. D2001-1480 167
Calder v Jones 465 US 783 (1984) 188, 190, 198, 199, 202
Campomar Sociedad Limitada v Nike International Limited [2000] HCA 12 113, 149
Cantor Fitzgerald International v Tradition (UK) Ltd [2000] RPC 95 94
Car Toys Inc. v Informa Unlimited, Inc. (2000) NAF 93682 175
Casio India Co. Ltd v Ashita Tele Systems Pvt Ltd (2003) (27) PTC 265 (Del) 195
Caton v Caton (1867) LR 2 HL 127 75, 78
CCOM Pty Ltd v Jiejing Pty Ltd (1994) 27 IPR 481 121
Chakravarti v Advertiser Newspapers Ltd [1998] HCA 37, (1998) 193 CLR 519 205
Chief Executive Department Internal Affairs v Atkinson HCNZ unreported
CIV-2008-409-002391 (2008) 290
Church of Scientology v Woodward [1982] HCA 78 236
City Utilities v Ed Davidson (cityutilities.com) WIPO Case No. D2000-0004 175
Coca-Cola v F Cade & Sons Limited [1957] IR 196 169
Commissioner of Inland Revenue v B [2001] 2 NZLR 566 241
Compuserve Inc. v Patterson 89 F. 3d 1257 (6th Cir 1996) 195
Computer Edge v Apple (1986) 161 CLR 171 96
connect.com.au Pty Ltd v GoConnect Australia Pty Ltd [2000] FCA 1148 153
Coogi Australia Pty Ltd v Hysport International Pty Ltd [1998] FCA 1059 92
Cooper v Universal Music Australia Pty Ltd [2006] FCAFC 187 105
Cramp & Sons Ltd v Frank Smythson Ltd [1944] AC 328 90
CSR Limited v Resource Capital Australia Pty Limited [2003] FCA 279 158
Cubby v CompuServe 776 F. Supp. 135 (SDNY 1991) 209
Cybersell Inc. v Cybersell Inc. 130 F. 3d 414 (9th Cir 1997) 195, 196
Darryl v Evans (1962) HC 174 32
Data Access Corporation v Powerflex Services Pty Ltd [1999] HCA 49 94, 96
Data Concepts v Digital Consulting Inc. and Network Solutions Inc. 150 F. 3d 620 (6th
Cir. 1998) 207
Databank Systems Ltd v Commissioner of Inland Revenue [1990] 3 NZLR 385 30
Derry v Peek (1889) 14 App Cas 337 160
Diageo plc v John Zuccarini WIPO Case No. D2000-0996 167
TABLE OF CASES xix
Digital Equipment Corporation v Alta Vista Technology Inc. 960 F. Supp. 456 (D Mass
1997) 187
Dilosa v Latec Finance Pty Ltd (1966) 84 WN (Pt 1) (NSW) 557 287
Direct Line Group Ltd v Purge IT WIPO Case No. D2000-0583 167
Dixons Group PLC v Purge IT WIPO Case No. D2000-0584 167
Doherty v Registry of Motor Vehicles No. 97CV0050 (Mass 1997) 79
Dow Jones & Co. Inc. v Harrods Ltd 237 F. Supp. 2d 394 (SDNY 2002) 200
Dow Jones v Gutnick [2001] VSCA 249 185, 189
Dow Jones v Gutnick [2002] HCA 56 6, 185–6, 189–90, 191, 196, 198, 200, 204,
205, 210, 211, 214
Dow Jones v Powerclick Inc., WIPO Case No. D2000-1259 161
DPP (Cth) v Rogers [1998] VICSC 48 270
DPP v Sutcliffe [2001] VSC 43 282
Duchess of Argyle v Duke of Argyle [1967] Ch 302 217
Eastman v R (1997) 76 FCR 9 305
Eddie Bauer Inc. v Paul White (2000) eResolution AF-204 161, 168
Ellis v Smith (1754) 1 Ves Jun 11 at 12, 30 ER 205 75
Energy Source Inc. v Your Energy Source NAF No. FA0096364 168
Entores Ltd v Miles Far East Corp [1955] 2 QB 327 58
EPP v Levy [2001] NSWSC 482 217
ESAT Digifone Ltd v Colin Hayes WIPO Case No. D2000-0600 169
Evans v Hoare [1892] 1 QB 593 75, 77, 78
Experience Hendrix LLC v Denny Hammerton and The Jimi Hendrix Fan Club WIPO
Case No. D2000-0364 170
Exxon Corp v Exxon Ins. Consultations [1982] Ch 119 93
Faulks v Cameron [2004] NTSC 61, (2004) 32 Fam LR 417 44
Feist Publications Inc. v Rural Telephone Service Co. Inc. 737 F. Supp. 610, 622
(Kan 1990) 90
Fiber-Shield Industries Inc. v Fiber Shield Ltd NAR (2000)
No. FA0001000092054 169
Firth v State of New York 775 NE 2d 463 (2002) 201, 210, 211
Fletcher Challenge Ltd v Fletcher Challenge Pty Ltd [1981] 1 NSWLR 196 160
Fletcher v Bealey (1885) 28 ChD 688 154
Francis Day & Hunter Ltd v Bron [1963] Ch 587 95
Freeserve PLC v Purge IT WIPO Case No. D2000-0585 167
Futuredontics Inc. v Applied Anagramatics Inc. (9th Circuit 1998) 116
G v Day [1982] 1 NSWLR 24 217
GE Capital Finance Australasia Pty v Dental Financial Services Pty Ltd Case
No. DAU2004-0007 177
Giller v Procipets [2004]VSC 113 237
GlobalCenter Pty Ltd v Global Domain Hosting Pty Ltd Case No. DAU2002-0001 173
Godfrey v Demon Internet Ltd [2001] QB 201 187
Golden Acres Ltd v Queensland Estates Pty Ltd [1969] Qd R 378 184
Golden Eagle International Trading Pty Ltd v Zhang [2007] HCA 15 299
Goodman v J Eban Ltd [1954] 1 QB 550 75
Graham Technology Solutions Inc. v Thinking Pictures Inc. 949 F. Supp. 1427 (ND Cal
1997) 32
Grant v Commissioner of Patents [2005] FCA 1100 122
Griswold v Connecticut 381 US 479 (1965) 232
xx TABLE OF CASES
Panavision International v Toeppen (1998) 141 F. 3d 1316 (9th Cir) 144, 146
Parker v The South Eastern Railway Co. (1877) 2 CPD 416 66, 68
Peek v Gurney (1873) LR 6 HL 377 160
Philippe Tenenhaus v Telepathy Inc. (2000) NAF 94355 175
Pitman Training Limited v Nominet [1997] EWHC Ch 367 144, 145, 146
Playboy Enterprises Inc. v Calvin Designer Label 985 F. Supp. 2d 1220
(ND Cal 1997) 118, 147
Playboy Enterprises Inc. v Chuckleberry Publishing Inc. 939 F. Supp. 1032 (SDNY
1996) 196
Playboy Enterprises Inc. v Hie Holdings Pty Ltd [1999] ATMO 68 117
Playboy Enterprises Inc. v Welles 162 F. 3d 1169 (9th Cir 1998) 117, 118
Polaroid Corp. v Sole N Pty Ltd [1981] 1 NSWLR 491 113
Powell v Birmingham Vinegar Brewing Co Ltd [1897] AC 710 160
Premier Brands v Typhoon [2000] RPC 477 149
ProCD Inc v Zeidenberg 86 F. 3d 1447 (7th Cir 1996) 67
Qantas Airways Limited v The Domain Name Company Limited (2000) 1 NZECC
70-005 157
R v Brislan, Ex parte Williams (1935) 54 CLR 262 268
R v Burdett (1820) 4 B & Ald 115 188
R v Frolchenko (1998) QCA 43 77, 300
R v Idolo [1998] VICSC 57 270
R v Maqsud Ali [1966] 1 QB 688 300
R v Moore, Ex Parte Myers (1884) 10 VLR 322 76
R v Shephard [1993] AC 380 302
R v Stevens [1999] NSWCCA 69 270
Re Eilberg 49 USPQ 2d 1955 (1998) 170
Re Krupp [1999] EIPR N24 150
Re United Railways of the Havana and Regla Warehouses Ltd [1960] Ch 52 184
Reckitt & Colman Products Ltd v Borden Inc. (No. 3) [1990] 1 WLR 491 151
Reddaway v Banham [1896] AC 199 151
Rediff Communication Ltd v Cyberbooth AIR (2000) Bom 27 157
Reese Bros Plastics Ltd v Hamon-Sobelco Aust Pty Ltd (1988) 5 BPR 11, 106 30
Regie National des Usines Renault SA v Zhang [2002] HCA 10 184, 214
Register.com Inc. v Verio Inc. 356 F. 3d 393 (2nd Cir 2004) 69, 72
Reno v American Civil Liberties Union 521 US 844 (1997) 8, 13, 272, 317, 318, 323
Rindos v Hardwick (unreported) WASC (1993) 207
Roe v Wade 410 US 113 (1973) 232
Satyam Infoway Ltd v Siffynet Solutions Pvt Ltd (2004) (28) PTC 566 (SC) 150, 160
Scan Inc. v Digital Service Consultants Inc. 293 F. 3d 707 (4th Cir 2002) 198
Schneider v Norris (1814) 2 M & S 286 75
Shell Co. of Australia Ltd v Esso Standard Oil (Aust) Ltd (1963) 109 CLR 407 113
Shetland Times Ltd v Wills and Zetnews Ltd [1997] 37 IPR 71, [1997] FSR 604 114
SM Integrated Transware v Schenker Singapore Ltd [2005] 2 SLR 651 52, 64
Smith v Greenville County (1938) 188 SC 349, 199 SE 416 76
Société Accor contre M Philippe Hartmann WIPO Case No. D2001-0007 167
Sony Corp. v Universal City Studios 464 US 417 (1984) 103
Sony Kabushiki Kaishal v Sin Eonmok WIPO Case No. D2000-1007 168
Specht v Netscape Communications Corp. 150 F. Supp. 2d 585 (SDNY 2001) 70
Spiliada Maritime Corp. Ltd v Cansulex Ltd [1987] AC 460 184, 214
TABLE OF CASES xxiii
Universal Music Australia Pty Ltd v Sharman License Holdings Ltd [2005]
FCA 1242 104
University of Melbourne v union melb WIPO Case No. DAU2004-0004 177
University of New South Wales v Moorehouse (1975) 133 CLR 1 98, 107
Victoria Park Racing v Taylor (1937) 58 CLR 479 235
Vita Food Products Inc. v Unus Shipping Co. [1939] AC 277 184
Vivendi Universal v Jay David Sallen WIPO Case No. D2001-1121 167, 168
Voth v Manildra Flour Mills Pty Ltd (1990) 65 ALJR 83 184, 214
Wagner v International Ry Co. 133 NE 437 at 437 (NY 1921) 236
Wal-Mart Stores Inc. v Richard MacLeod WIPO Case No. D2000-0662 167
Wal-Mart Stores Inc. v wallmartcanadasucks.com and Kenneth J Harvey WIPO Case
No. D2000-1104 167
Wal-Mart Stores Inc. v Walsucks and Walmarket Puerto Rico WIPO Case No.
D2000-0477 167
Ward Group Pty Ltd v Brodie & Stone Plc [2005] FCA 471 199
Ward v R [1980] HCA 11 191
Warner Bros Pictures v Majestic Pictures Corp. (1934) 70 F. 2d 310 93
Warnink v Townsend & Sons [1979] AC 731 151
Washington Post Co. v Total News Inc. 97 Civ 1190 (SDNY 1997) 114, 116
Webber v Jolly Hotels 977 F. Supp. 327 (D NJ 1997) 195
Wilkens v Iowa Insurance Commissioner (1990) 457 NW 2d 33, 34, 52
World Series Cricket Pty Ltd v Parish (1977) 16 ALR 181 252
Y Liu v Star City Pty Limited PR903625 [2001] AIRC 394 239
Yahoo Inc. v Akash Arosa [1999] FSR 931 157, 194
Yahoo! Inc and GeoCities v Data Art WIPO Case No. D2000-0587 161
Young v New Haven Advocate 315 F. 3d 256 (4th Cir 2003) 198, 199, 208
Zippo Manufacturing Co. v Zippo Dot Com Inc. 952 F. Supp. 1119 (WD Pa
1997) 194, 195, 196
Zoekallehuizen.nl v NVM (2006) 115
Table of statutes
xxv
xxvi TABLE OF STATUTES
1
2 LAW OF ELECTRONIC COMMERCE
Judge Frank Easterbrook5 initiated the debate with his article ‘Cyberspace and
the law of the horse’. Easterbrook argued that cyberlaw is unimportant because
it invokes no first principles.6 He made reference to the comment of a former
Dean of the University of Chicago Law School that a course in the law of the
horse was not offered: ‘Lots of cases deal with sales of horses; others deal with
people kicked by horses; still more deal with the licensing and racing of horses,
or with the care veterinarians give to horses, or with prizes at horse shows.’
Nevertheless there is no discrete body of horse law.7 Judge Easterbrook argued
that there was no reason to teach the ‘law of cyberspace’, any more than there
was reason to teach the ‘law of the horse’, because neither, he suggested, would
‘illuminate the entire law’. By analogy he proclaimed that cyberlaw did not
exist.8
In his article ‘The law of the horse: What cyberlaw might teach’, Lawrence
Lessig9 responded to Easterbrook’s assertions. Through a series of examples he
demonstrated that cyberlaw or electronic commerce law, however described,
forms a unique area of legal discourse. Lessig referred to privacy and spam in
cyberspace. He argued that any lesson about cyberspace requires an understand-
ing of the role of law, and that in creating a presence in cyberspace, we must all
make choices about whether the values we embed there will be the same values
we espouse in our real space experience. Understanding how the law applies in
cyberspace in conjunction with demands, social norms and mores, and the rule
of cyberspace, will be valuable in understanding and assessing the role of law
everywhere.
Easterbrook and Lessig’s disquisitions are now dated by a decade in a field
which has advanced more quickly than any other field of law. The law of elec-
tronic commerce has increasingly become a distinct class of study, with legal
specialists, dedicated monographs and courses in every law school. Legisla-
tion has been deemed necessary for several cyber issues. Those who scorned
words like ‘cyberlaw’ and ‘cybercrime’ perhaps winced at the introduction of the
Australian Cybercrime Act 2001 (Cth). Traditional laws proved inadequate,
4 Ibid.
5 Now Chief Judge of the US Court of Appeals for the Seventh Circuit.
6 ‘Cyberspace and the law of the horse’, (1996) U Chi Legal F 207.
7 Interestingly, the US law firm of Miller, Griffin and Marks advertises that it specialises in ‘commercial,
corporate and equine matters’.
8 See also James Boyle, ‘Foucault in cyberspace: Surveillance, sovereignty, and hard-wired censors’, (1997)
University of Cincinnati Law Review 66, 177.
9 ‘The law of the horse: What cyberlaw might teach’, (1999) 113 Harv L Rev 501.
4 LAW OF ELECTRONIC COMMERCE
10 For example the Spam Act 2003 (Cth) and the Memoranda of Understanding between Australia, South
Korea and the US. See Chapter 16.
THE LAW OF ELECTRONIC COMMERCE 5
11 Other bodies include the Free Trade Agreement of the Americas, the International Telecommunications
Union and the International Organisation for Standardisation. See Chapter 19.
12 In 2006 the ACT had the highest connection rate, with 75% of all homes connected and 53% of these
on broadband connections. Similar rates were seen in New South Wales (63% total and 42% broadband),
Victoria (63% and 42%), Queensland (64% and 41%) and Western Australia (65% and 41%). The lowest
connection rate was in Tasmania (55% and 28%).
6 LAW OF ELECTRONIC COMMERCE
were 12 per cent less likely to have broadband than employed people. Indige-
nous households are about half as likely to have broadband as non-indigenous
households.
The High Court of Australia has had few opportunities to consider the impact of
electronic commerce, cyberspace and the operation of the internet. Dow Jones v
Gutnick13 in 2002 was one such opportunity. The court considered defamation
on the World Wide Web and whether it was appropriate for the Supreme Court
of Victoria to exercise jurisdiction over a US-based website. This was the first real
opportunity for the court to consider its role in law making and the common law
in the context of cyberspace and electronic commerce.
The nature and essence of the common law makes it amenable to develop-
ment, subject to the Constitution and statute.14 The judiciary, scholars and com-
mentators debate the length and breadth of acceptable developments using var-
ious forms of legal reasoning to justify their individual approaches. Whether the
approach is principle-based, a coherence-based incremental method or policy-
based, development is an integral part of the common law and of our socio-legal
structure.15
In a joint majority judgment Gleeson CJ, McHugh, Gummow and Hayne JJ
accepted the evidence before the judge at first instance, Hedigan J, regarding
‘the unusual features of publication on the internet and the World Wide Web’.
The majority accepted that the internet is ‘a telecommunications network that
links other telecommunication networks . . . [that] enables inter-communication
using multiple data-formats . . . among an unprecedented number of people
using an unprecedented number of devices [and] among people and devices
without geographic limitation’.16 The majority expressed concern regarding the
lack of evidence adduced to reveal what electronic impulses pass or what elec-
tronic events happen in the course of passing or storing information on the
internet. Nevertheless the majority took the opportunity to define a broad range
of internet terms:
14. The World Wide Web is but one particular service available over the Internet. It
enables a document to be stored in such a way on one computer connected to
the Internet that a person using another computer connected to the Internet can
request and receive a copy of the document . . . the terms conventionally used to
refer to the materials that are transmitted in this way are a ‘document’ or a ‘web
page’ and a collection of web pages is usually referred to as a ‘web site’. A computer
that makes documents available runs software that is referred to as a ‘web server’;
a computer that requests and receives documents runs software that is referred to
as a ‘web browser’.
15. The originator of a document wishing to make it available on the World Wide Web
arranges for it to be placed in a storage area managed by a web server. This process
is conventionally referred to as ‘uploading’. A person wishing to have access to that
document must issue a request to the relevant server nominating the location of
the web page identified by its ‘uniform resource locator (URL)’. When the server
delivers the document in response to the request the process is conventionally
referred to as ‘downloading’.
In the same case Kirby J was more philosophical in discussing the ramifications
of technological developments, quoting Lord Bingham of Cornhill, who said that
the impact of the internet on the law of defamation will require ‘almost every
concept and rule in the field . . . to be reconsidered in the light of this unique
medium of instant worldwide communication’.17
In any reformulation of the common law, Kirby J continued, many factors
would need to be balanced: the economic implications of any change, valid
applicable legislation, the pros and cons of imposing retrospective liability on
persons, and social data and public consultation.18 Most significantly, reform is
the purvey of government; it is not the primary role of the courts. Nevertheless,
as Kirby J pointed out, courts have reversed long-held notions of common law
principle when ‘stimulated by contemporary perceptions of the requirements of
fundamental human rights’.19
As they have recognised the enormity of the impact of the internet as a rev-
olutionary communications giant, courts all over the world have been forced to
reconsider basic principles. Kirby J appropriately quoted noted US jurist Billings
Learned Hand:
The respect all men feel in some measure for customary law lies deep in their nature;
we accept the verdict of the past until the need for change cries out loudly enough to
force upon us a choice between the comforts of further inertia and the irksomeness of
action.20
17 Matthew Collins, The law of defamation and the internet, Oxford University Press, Oxford, 2001.
18 Dow Jones v Gutnick [2002] HCA 56, paras 75 and 76.
19 Dow Jones v Gutnick [2002] HCA 56, para 77.
20 Hand, ‘The contribution of an independent judiciary to civilisation’, in Irving Dillard (ed.), The spirit of
liberty: Papers and addresses of Learned Hand, 3rd edn, Alfred A Knopf, New York, 1960.
21 [1994] HCA 46.
22 [1994] HCA 46, para 5.
8 LAW OF ELECTRONIC COMMERCE
rock and the foundation of modern English and colonial law (including Aus-
tralia’s law). On the other hand, it has remained sufficiently flexible to adapt
to modern developments. And so it should. With the advent of new and novel
factual circumstances the judiciary must find solutions for the benefit, stabil-
ity and protection of society and commerce. This has been described as the
‘genius of the common law’: that the courts may adapt principles of past deci-
sions, by analogical reasoning, ‘to the resolution of entirely new and unforeseen
problems’.23 When the new problem is as novel, complex and global as Gutnick’s
case, an opportunity – indeed a duty – arises to fashion and build the common
law.24
Two examples illustrate the best and worst of judicial malleability. The com-
mon law crime of larceny dictates that the prosecution must prove certain ele-
ments of the crime to elicit a conviction. One key element is to prove that the
accused intended to deprive another of property. This is problematic for intan-
gibles. Where a person accesses a computer and ‘steals’ a computer file a curious
thing happens: the information is both stolen and left behind. The development
of common law larceny failed to predict or consider this. Attempts at prosecution
failed. The courts could not or would not modify the well-established common
law offence of larceny to accommodate this development. It was left to the leg-
islature to enact cybercrime legislation to encompass offences that could not be
imagined only a matter of years earlier.25 A reading of the US Supreme Court
decision of Reno v American Civil Liberties Union26 provides a similar missed
opportunity in the US context. On the other hand, the English Court of Appeal,
in the domain name case Marks & Spencer v One in a Million,27 moulded, twisted
and interpreted the five established elements of the tort of passing off to pro-
vide a remedy where one previously did not exist. The result is such a depar-
ture from traditional passing off that it is referred to as ‘domain name passing
off ’.28
This extension of principle when faced with domain name piracy is to be
applauded. In the words of Kirby J, ‘When a radically new situation is pre-
sented to the law it is sometimes necessary to think outside the square.’29 Kirby J
reflected on the specific issue of defamation in the Dow Jones appeal and theo-
rised a re-evaluation and formation of a new ‘paradigm’, and a ‘common sense’
approach to change. His Honour questioned the wisdom of refusing to find a new
remedy in new circumstances, describing it as ‘self-evidently unacceptable’.30
23 Dow Jones v Gutnick [2002] HCA 56, para 91, per Kirby J.
24 For a view of the role and limitations of the judiciary see the judgment of Brennan J in Mabo v Queensland
(No. 2) [1992] HCA 23; (1992) 175 CLR 1.
25 See Chapter 16.
26 521 US 844 (1997). See also American Civil Liberties Union v Reno 929 F. Supp 824 (1996), particularly
the joint judgment of Sloviter CJ, Buckwalter and Dalzell JJ.
27 [1999] 1 WLR 903; [1998] EWCA Civ 1272.
28 See Chapter 9.
29 Dow Jones v Gutnick [2002] HCA 56, para 112.
30 Dow Jones v Gutnick [2002] HCA 56, para 115.
THE LAW OF ELECTRONIC COMMERCE 9
Change is not new. The lex mercatoria, for example, emerged from the cus-
toms and practices of merchants from the Middle Ages. Rules governing bills of
exchange and letters of credit were crafted by commercial parties long before
the law makers had the opportunity to legislate. Their aim was commerce,
but the result was that commercial customs and practice became recognised
by the courts and then the legislature, both institutions responding to commercial
realities.
In the context of reconceptualisation, Kirby J (in Gutnick’s case) dabbles with
new rules for a ‘unique technology’ and the ‘urgency’ of considering such changes:
To wait for legislatures or multilateral international agreement to provide solutions to
the legal problems presented by the Internet would abandon those problems to ‘ago-
nizingly slow’ processes of lawmaking. Accordingly, courts throughout the world are
urged to address the immediate need to piece together gradually a coherent transna-
tional law appropriate to the ‘digital millennium’. The alternative, in practice, could
be an institutional failure to provide effective laws in harmony, as the Internet itself
is, with contemporary civil society – national and international. The new laws would
need to respect the entitlement of each legal regime not to enforce foreign legal rules
contrary to binding local law or important elements of local public policy. But within
such constraints, the common law would adapt itself to the central features of the
Internet, namely its global, ubiquitous and reactive characteristics. In the face of such
characteristics, simply to apply old rules, created on the assumptions of geograph-
ical boundaries, would encourage an inappropriate and usually ineffective grab for
extra-territorial jurisdiction . . .
Generally speaking, it is undesirable to express a rule of the common law in terms
of a particular technology. Doing so presents problems where that technology is itself
overtaken by fresh developments. It can scarcely be supposed that the full potential
of the Internet has yet been realised. The next phase in the global distribution of
information cannot be predicted. A legal rule expressed in terms of the Internet might
very soon be out of date.31
Further reading
Justice George Fryberg, Keynote Address to the Australian Conference on the Law of
Electronic Commerce, Brisbane 2003, Supreme Court of Queensland publications:
archive.sclqld.org.au/judgepub/2003/fry070403.pdf.
Billings Learned Hand, ‘The contribution of an independent judiciary to civilisation’, in
Irving Dillard (ed.), The spirit of liberty: Papers and addresses of Learned Hand, 3rd
edition, Alfred A Knopf, New York, 1960.
Russell Hinchy, The Australian legal system: History, institutions and method, Pearson
Education Australia, Sydney, 2008, Part Three.
Neil MacCormick, Legal reasoning and legal theory, Clarendon Law Series, Oxford Univer-
sity Press, Oxford, 1979.
Exploring the Variety of Random
Documents with Different Content
And he slipped down, tail first through the hole.
Y ou may well believe that Toto and Sniffy did not lose any time
diving down under water as soon as they heard their father tell
them to do so. Many times before, when they were first learning to
swim, they had dived down quickly like this just after they had
poked up their noses to get a breath of air. And always their father
or mother had swum with them out of danger.
“What was that whacking noise, Dad?” asked Sniffy, when they
were once more safely back in their stick and mud house.
“That was Mr. Cuppy banging his flat tail on the water to let us
know there was some danger,” answered Mr. Beaver. “Cuppy, or
some of the older beavers, are always on guard at or near the dam.
If they hear, see or smell danger they whack with their tails. And
whenever you hear that whacking sound you little fellows must dive
into the water and swim away just as fast as you can.”
“Oh, now I remember about Mr. Cuppy whacking with his tail!”
exclaimed Toto. “You told us that last summer, didn’t you, Dad?”
“Yes. But the winter has been long, and all that time you have had
no chance to hear Mr. Cuppy bang his tail on the water, so I was
afraid you had forgotten,” said Mr. Beaver.
“I did forget,” answered Sniffy.
“And I did, too,” said Toto. “But now I’m always going to listen for
Mr. Cuppy’s tail.”
“And run and dive into the water as fast as you can when you
hear him whacking and banging,” advised Mr. Beaver. “Now we’ll
wait a little while and then we’ll swim up again. The danger may
have passed.”
Toto and his brother waited with their father perhaps five minutes
in the beaver house. Then, once more, they dived down, out of the
front door, and up into the river, a little farther away. Mr. Beaver
went ahead, and poked up his nose first to look about. He saw a
number of beavers working on the dam, among them Mr. Cuppy.
“Is it all right?” called Mr. Beaver to the old gentleman.
“Yes, come along. We need lots of help to make the dam bigger
and stronger,” answered Mr. Cuppy. “Where are your two boys?”
“Right here,” answered their father. “It’s all right! Bob up your
heads!” he called to Toto and Sniffy.
Up they swam, and soon they were among their friends on the
dam, which was made of a number of trees laid crosswise over the
narrow part of the river. Sticks had been piled back of the trees, and
mud, grass-hummocks, and leaves were piled back of the sticks, so
that very little water could run through. Back of the dam the water
was quite deep, but in front it was very shallow. The beavers all had
their houses back of the dam.
“What was the danger?” asked Mr. Beaver of Mr. Cuppy, as the
two animal gentlemen walked along on top of the dam. “Did you see
a bear or some other big animal?”
“No,” answered Mr. Cuppy. “The reason I whacked my tail was
because I saw five or six men over in the woods where the trees are
that we are going to cut down for our dam.”
“Were they hunter men, with guns?” asked Mr. Beaver.
“No, they didn’t seem to be hunters,” answered Mr. Cuppy. “They
were rough-looking men, and not dressed as nicely as most hunters
are. These men had old rusty cans in their hands—cans like those
we sometimes find in our river. I thought they were coming over to
our dam to catch us, but they didn’t. However I gave the danger
signal.”
“Yes, it’s best to be on the safe side,” returned Mr. Beaver. “Well,
now we are here—my two boys and myself—and we are ready to
help gnaw down trees for you. My wife will be here in a little while.
She has gone to see if she can find some aspen bark for our dinner.”
“My wife has gone to look for some, too,” said Mr. Cuppy. “Well,
now, let’s see! Have Toto and Sniffy ever cut down any trees?”
“No, this will be the first time for them,” said their father.
“Well, take them over to the little grove and show them how to
work,” advised Mr. Cuppy. “We shall need many trees this spring.
How are you, boys? Ready to gnaw with your red teeth?”
“Yes, sir,” answered Toto and Sniffy.
“Come along!” called their father, and into the water they jumped
from the top of the dam, to swim to where the trees grew beside the
river.
Beavers always swim, if they can, to wherever they want to go.
They would much rather swim than walk, as they can swim so much
better and faster. So, in a little while, Toto and Sniffy stood with their
father beside a tree which, near where the tree trunk went into the
ground, was as large around as your head.
“We will cut down this tree,” said Mr. Beaver.
“What! That big tree?” cried Toto. “We can never gnaw that down,
Dad! It will take a year!”
“Nonsense!” laughed Mr. Beaver. “We can gnaw down larger trees
than this. Before you boys are much older you’ll do it yourselves. But
now come on, let’s start. I’ll watch you and tell you when you do
things the wrong way. That’s the way to learn.”
“I guess I know how to gnaw a tree down!” boasted Sniffy. “I’ve
often watched Mr. Cuppy do it.” This little beaver boy stood up on his
hind legs, using his tail as a sort of stool to sit on, and he began
cutting through the bark of the tree, using his four, strong orange-
colored front teeth to gnaw with.
“Here! Hold on! Wait a minute!” cried Mr. Beaver to his son, while
Toto, who was just going to help his brother, wondered what was
the matter.
“Isn’t this the tree you want gnawed down, Dad?” asked Sniffy.
“Yes, that’s the one,” his father answered. “But if you start to
gnaw on that side first the tree will fall right on top of those others,
instead of falling flat on the ground as we want it to. You must begin
to gnaw on the other side, Sniffy. Then, as soon as you have nearly
cut it through, the tree will fall in this open place.”
“Oh, I didn’t know that,” said Sniffy.
“Nor I,” added his brother.
“Always look to see which way a tree is going to fall,” advised
Daddy Beaver, “and be careful you are not under it when it falls. If
you do as I tell you then you will always be able to tell just which
way a tree will fall to make it easier to get it to the dam.”
Then Mr. Beaver told the boys how to do this—how to start
gnawing on the side of the tree so that it would fall away from them.
Lumbermen know which way to make a tree fall, by cutting or
sawing it in a certain manner, and beavers are almost as smart as
are lumbermen.
How they do it I can’t tell you, but it is true that beavers can make
a tree fall almost in the exact spot they want it. Of course accidents
will happen now and then, and some beavers have been caught
under the trees they were gnawing down. But generally they make
no mistakes.
“How are we going to get the tree to the dam after we gnaw
through the trunk?” asked Toto, as he and Sniffy began cutting
through the outer bark with their strong, red teeth. “We can’t carry
it there.”
“We could if we could bite it into short pieces, as we bite and
gnaw into short pieces the logs we gnaw bark from in our house all
winter,” said Sniffy.
“We don’t want this tree cut up into little pieces,” said Daddy
Beaver. “It must be in one, long length, to go on top of the dam.”
“We never can drag this tree to the dam after we have gnawed it
down!” sighed Toto. “It will be too hard work!”
“You won’t have to do that,” said his father with a laugh. “We will
make the water float the tree to the dam for us.”
“But there isn’t any water near here,” said Sniffy.
“No, but we can bring the water right here,” went on Mr. Beaver.
“How?” Toto wanted to know, for he and his brother were young
beavers.
“We can dig a canal through the ground, and in that the water will
come right up to where we want it,” said Mr. Beaver. “We’ll dig out
the dirt right from under the tree, after we have cut it down, and
bring the canal to it. The canal will fill with water. The tree, being
wood, will float in the water, and a lot of us beavers, getting
together, can swim along and push and pull the tree through the
canal right to the place where we need it for the dam.”
“Are we going to learn how to dig canals, too?”
“Yes, building dams and canals and cutting down trees are the
three main things for a beaver to know,” said his father. “But learn
one thing at a time. Just now you are to learn how to cut down this
tree. Now gnaw your best—each of you!”
So Toto and Sniffy gnawed, taking turns, and their father helped
them when they were tired. Soon a deep, white ridge was cut in the
side of the tree.
“The tree is almost ready to fall now,” said Mr. Beaver. “You boys
may take a little rest, and I’ll finish the gnawing. But I want you to
watch and see how I do it. Thus you will learn.”
“May I go over there by the spring of water and get some sweet
bark?” asked Toto.
“Yes, I’ll wait for you,” answered his father. “I won’t finish cutting
the tree down until you come back.”
“Bring me some bark,” begged Sniffy, as he sat down on his
broad, flat tail.
“I will,” promised Toto.
The little beaver boy waddled away, and soon he was near an
aspen tree. Beavers like the bark from this tree better than almost
any other. Toto was gnawing away, stripping off some bark for his
brother, when, all at once, he heard a rustling sound in the bushes,
and a big animal sprang out and stood in front of Toto.
“Oh, dear me! It’s a bear!” cried Toto.
“No, I am not a bear,” answered the other animal. “Don’t be afraid
of me, little muskrat boy. I won’t hurt you.”
“I’m not a muskrat! I’m a beaver!” said Toto. “But who are you?”
“I am Don,” was the answer. “And I am a dog. Once I was a
runaway dog, but I am not a runaway any longer. But what are you
doing here, beaver boy?”
“Helping my father cut down a tree for the dam,” Toto answered.
“What are you doing, Don?”
“I am looking for a camp of tramps,” was the answer, the dog and
beaver speaking animal talk, of course. “A dog friend of mine said
there was a camp of tramps in these woods, and I want to see if I
can find them,” went on Don.
“What are tramps?” asked Toto.
“Ragged men with tin cans that they cook soup in,” answered
Don. “Have you seen any around here?”
“No, but Cuppy, the oldest beaver here, saw some ragged men
over in the woods,” began Toto. “Maybe they are—”
But before he could say any more he heard a loud thumping
sound, and Toto knew what that meant.
“Look out! There’s danger!” cried Toto.
CHAPTER IV
TOTO AND THE TRAMPS
T oto, the bustling beaver, ran as fast as he could and took shelter
under a big rock that made a place like a little cave on the side
of the hill.
“What’s the matter?” asked Don, the dog. “Are you afraid because
I told you about the tramps?”
“Oh, no,” answered Toto. “But didn’t you hear that thumping
sound just now?”
“Yes, I heard it,” answered Don. “What was it—somebody beating
a carpet?”
“I don’t know what a carpet is,” replied Toto. “We don’t have any
at our house. But, whatever it is, it wasn’t that. The noise you heard
was one of my beaver friends thumping his tail on the ground.”
“Oh, you mean wagging his tail!” barked Don. “Well, I do that
myself when I feel glad. I guess one of your beaver friends must feel
glad.”
“No, it isn’t that,” went on Toto. “Whenever any of the beavers
thumps his tail on the ground it means there’s danger around, and
all of us who hear it run and hide. You’d better come under this rock
with me. Then you’ll be out of danger.”
Once more the thumping sound echoed through the woods.
“Better come under here with me,” advised Toto.
“Well, I guess I will,” barked Don.
No sooner was he under the big rock with Toto than, all of a
sudden, there was a loud crash, and a great tree fell almost on the
place in the woods where Toto and Don had been standing talking.
“My goodness!” barked Don, speaking as dogs do. “It’s a good
thing we were under this rock, Toto, or else that tree would have
fallen on us! Did you know it was going to fall?”
“Well, no, not exactly. My brother and I have been practicing on
gnawing a tree this morning, but ours isn’t cut down yet. My father
is going to finish cutting it, and show Sniffy and me how it is done.
But he promised not to cut all the way through until I got back. So I
don’t believe it was our tree that fell.”
“Is it all right for us to come out now?” asked Don. Though he
was older than the beaver boy, he felt that perhaps Toto knew more
about the woods—especially when tree-cutting was going on.
Toto sat up on his tail under the big rock and listened with his little
ears. He heard the beavers, which were all about, talking among
themselves, and he and Don heard some of them say:
“It’s all right now. Cuppy and Slump have cut down the big tree
for the dam. It has fallen, and now it is safe for us to come out.”
The dog and the little beaver came out from under the
overhanging rock, and Don noticed the pieces of bark Toto had
stripped off.
“What are you going to do with them?” asked Don. “Make a
basket?”
“A basket? I should say not!” exclaimed Toto. “I’m going to eat
some and take the rest to my father and brother. They are farther
back in the woods, cutting down a tree. Don’t you like bark?”
“Bark? I should say not!” laughed Don in a barking manner. “I like
bones to gnaw, but not bark, though I bark with my mouth. That is
a different kind, though. But I suppose it wouldn’t do for all of us to
eat the same things. There wouldn’t be enough to go around. But
tell me: Do you always hear a thumping sound whenever there is
danger in the woods?”
“Yes, that’s one of the ways we beavers have of talking to one
another,” answered Toto. “Whenever one of us is cutting a tree
down, and he sees that it is about to fall, he thumps on the ground
as hard as he can with his tail. You see our tails are broad and flat,
and they make quite a thump.”
Don turned and looked at Toto’s tail.
“Yes, it’s quite different from mine,” said the dog. “I sometimes
thump my tail on the floor, when my master gives me something
good to eat or pats me on the head. But my tail doesn’t make much
noise.”
“Well, a beaver’s tail does,” explained Toto. “So whenever any of
us hear the thumping sound we know there is danger, and we run
away or hide.”
“I’m glad to know this,” said Don. “When I’m in the woods, from
now on, and hear that thumping sound, I’ll look around for danger,
and I’ll hide if I can’t get out the way. Well, I’m glad to have met
you,” went on Don. “I don’t suppose you have seen Blackie, have
you?”
“Who is Blackie?” asked the beaver boy. “Is he another dog?”
“No, she’s a cat!” explained Don, with a laugh. “She’s quite a
friend of mine. She has a story all to herself in a book, and I have
one, too. I don’t suppose you were ever in a book, were you, Toto?”
“Did you say a brook?” asked the beaver boy. “Of course I’ve been
in a brook many a time. I even built a little dam across a brook once
—I and my brother Sniffy.”
“Ho, I didn’t say brook—I said book,” cried Don. “Of course I don’t
know much about such things myself, not being able to read. But a
book is something with funny marks in it, and boys and girls like
them very much.”
“Are they good to eat?” asked Toto.
“Oh, no,” answered Don, laughing.
“Then I don’t believe they can be very good!” said Toto, “and I
don’t care to be in a book.”
But you see he is in one, whether he likes it or not, and some day
he may be glad of it.
“Well, I must be going,” barked Don. “I want to see if I can find
that camp where the tramps live. Tramps are no good. They come
around the house where I live, near Blackie, the cat, and take our
master’s things. If I see the tramps I’m going to bark at them and
try to drive them away.”
Then he trotted on through the woods, and Toto, after eating a
little more bark, gathered some up in his paws, and, walking on his
hind legs, brought it to where his father and Sniffy were waiting for
him.
“Here’s Toto,” said Sniffy.
“Where have you been?” asked Mr. Beaver.
“Oh, getting some sweet bark,” answered Toto, and he laid down
on some clean moss the strips he had pulled off. “I met a dog, too.”
“A dog!” cried Mr. Beaver. “My goodness, I hope he isn’t chasing
after you!” and he looked through the trees as if afraid.
“Oh, this was Don, a good dog,” explained Toto. “He’s only looking
for some tramps. He won’t hurt any beavers.”
“Well, if he’s a good dog, all right,” said the beaver daddy. “But
hunters’ dogs are bad—they’ll chase and bite you. I suppose they
don’t know any better.”
“Where were you when Cuppy whacked with his tail just before
the big tree fell?” asked Sniffy, as he nibbled at some of the tender
bark his brother had brought.
“Oh, Don and I hid under a big rock,” answered Toto. “I told him
the whacking sound meant danger. He didn’t know it. And it’s a good
thing we hid when we did, for the tree would have crushed us if we
hadn’t been under the rock. Is our tree ready to finish gnawing
down, Daddy?”
“Yes,” answered Mr. Beaver. “You and Sniffy may start now, and
cut a little more. I’ll tell you when to stop.”
“But I thought you were going to finish, Dad,” said Sniffy.
“He will, Sniffy, if he said so. But he’s letting us help a little more
first so we can learn faster!”
Crash! Bang! went the big tree.
So the beaver boys sat up on their tails again, and gnawed at the
big tree—the largest one they had ever helped to cut down. They
gnawed and gnawed and gnawed with their orange-colored front
teeth, and then Mr. Beaver said:
“That’s enough, boys. I’ll do the rest. But you may whack on the
ground with your tails to warn the others out of the way.”
So Toto and Sniffy, much delighted to do this, found a smooth
place near a big rock, and then they went:
“Whack! Whack! Whack!”
“Danger! Danger!” cried a lot of other beavers who were working
near by. “A tree is going to fall! Run, everybody! Danger!”
“See!” exclaimed Toto to his brother. “We can make the old
beavers run out of the way just as Cuppy made Don and me run.”
“Yes, you beaver boys are growing up,” said Mr. Beaver, who had
waited to see that his two sons gave the danger signal properly.
“You are learning very well. Now here goes the tree.”
He gave a few more bites, or gnaws, at the place where the tree
was almost cut through, and then Mr. Beaver himself ran out of the
way.
“Crash! Bang!” went the big tree down in the forest. It broke down
several other smaller trees, and finally was stretched out on the
ground near the waters of Winding River.
“We helped do that!” said Toto to Sniffy, when the woods were
again silent.
“Yes, you have learned how to cut down big trees,” said their
father. “You are no longer playing beavers—you are working beavers.
Now we must dig the canal to float the tree nearer the dam, as it is
too heavy for us to roll or pull along, and we do not want to cut it.”
I will tell you, a little farther on, how the beavers cut canals to
float logs to the places where they want to use them. Just now all I’ll
say about them is that it took some time to get the tree Toto and
Sniffy had helped cut to the place where it was needed for the dam.
The two beaver boys and many others of the wonderful animals
were busy for a week or more.
Then, one day, when the tree was in place, Toto asked his mother
if he might go off into the woods and look for some more aspen
bark, as all that had been stored in the stick house had been eaten.
“Yes, you may go,” said Mrs. Beaver. “But don’t go too far, nor stay
too long.”
“I won’t,” promised Toto. Then he waddled off through the woods,
after having swum across the beaver pond, made by damming the
river, and soon he found himself under the green trees.
“I wonder if I’ll meet Don, the nice dog, or Whitie, the cat?”
thought Toto. “Let me see, was Whitie her name? No, it was Blackie.
I wonder if I’ll meet her, or that little girl who scared me so that day
on the ice?”
Toto looked off through the trees, but he saw neither Don nor
Blackie.
Toto found a place where some aspen bark grew on trees, and he
gnawed off and ate as much as he wanted. Then he walked on a
little farther and, pretty soon, he saw something in the woods that
looked like a big beaver house. It was a heap of branches and limbs
of trees, and over the outside were big sheets and strips of rough
bark.
“But that can’t be a beaver house,” thought Toto. “It isn’t near
water, and no beavers would build a house unless it had water near
it. I wonder what it is.”
Toto sat up on his tail and looked at the queer object. Then all at
once he heard rough voices speaking, and he saw some ragged men
come out of the pile of bark. One or two of them had tin cans in
their hands, and another was holding a pan over a fire that blazed
on a flat rock.
“Oh, I know who they are!” said Toto to himself. “These must be
the tramps Don was looking for. This is the tramp camp! I’ve found
the bad men. I wish I could find Don to tell him!”
CHAPTER V
TOTO SEES SOMETHING QUEER
N ow, the tramps who had built the shack of bark in the woods
knew nothing about beavers and their ways. The tramps did not
know that when a beaver whacks his tail on the ground it means
danger from a falling tree, or from something else.
But the tramps in the shack, toward which was falling the tree
Toto and Sniffy had gnawed down—these tramps heard the queer
whacking sounds, and they knew they had never heard them before.
So some of them, who were not as lazy as the others, ran out to see
what it meant.
One tramp looked up and saw the tall tree swaying down toward
the bark shelter. The tramp did not know that two little beaver boys
had, all alone, gnawed down the big tree. But the tramp could see it
falling.
“Come on! Get out! Everybody out of the shack!” cried the tramp
who saw the falling tree. “Everybody out! The whole woods are
falling down on us!”
Of course that wasn’t exactly so. It was only one tree that was
falling, and the same one which Toto and Sniffy had gnawed down.
But the tramp who called out was so excited he hardly knew what
he was saying.
And as soon as the other tramps, some of whom were sleeping in
the bark shack, heard the calls, they came running out, some
rubbing their eyes, for they were hardly awake. They had been
asleep in the daytime, too—the daytime when all the beavers were
busy.
“Come on! Come on! Get out! Everybody out!” yelled the tramp
who had first caught sight of the falling tree.
As soon as the others knew what the danger was, out they rushed
also, and then they all stood outside the shack and to one side and
watched the tree crash down.
Right on top of the bark cabin crashed the tree. There was a
splintering of wood, a breaking of branches, a big noise, and then it
was all over.
For a few minutes the tramps said nothing. They all stood looking
at the fallen tree that had crushed their home in the woods.
“Well!” exclaimed several of the men.
“It’s a good thing we got out in time,” growled one tramp.
“I should say so!” exclaimed another. “Lucky you saw it coming,”
he added to the tramp who had called the warning.
“Did some one chop the tree down?” asked a third tramp.
“No, I guess the wind blew it,” said a fourth.
“There isn’t enough wind to blow a tree down,” decided the first
tramp, who had red hair.
Of course we know it wasn’t the wind that blew the tree down. It
was Toto and Sniffy who gnawed it and made it fall. But the tramps
were too lazy to go and see what had caused the tree to topple over.
They just stood there and looked at their crushed house.
“It will be a lot of work to build that up again,” said one tramp.
“She’s smashed flat.”
“Build it up again! I’m not going to help build it up!” said another.
“It’s too hard. I’m tired of this place, anyhow. Let’s move off to
another woods. Maybe we can find a place near a chicken yard, and
we can have all the chickens we want. Let’s move away, now that
our house is smashed.”
“Yes, let’s do that!” cried some of the other tramps.
And those ragged men were so lazy that they did not want to go
to the trouble of building a home for themselves! Perhaps they
thought they could go off into the woods and find another already
built. Anyhow, they stood around a little while longer. One or two of
them picked up ragged coats and hats that were in the ruins of the
hut, and some took old cans in which they heated soup. That was all
they had to move.
“Well, come on! Let’s hike along!” said the red-haired tramp.
With hardly a look back at what had been a home for some of
them for a long time, the tramps walked away through the woods.
Toto and Sniffy, hiding in the bushes, watched the ragged men go.
“Look what we did!” said Sniffy to his brother.
“Yes, we cut down a tree, but we didn’t mean to make it fall on
the house where the tramps lived,” said Toto.
“Anyhow, they’re going away, and that’s a good thing for us,” went
on Sniffy. “Now we won’t have to make the dam so strong, nor move
away ourselves.”
“That’s so,” agreed Toto. “I didn’t think about that. Why, Sniffy, we
really drove the tramps away, didn’t we?”
“Yes,” answered his brother, “we did.”
“Don, the dog, will be glad to know this,” went on Toto. “I guess
he’ll wish he had helped drive the tramps away himself. Come on!
let’s go back and tell Dad and Mr. Cuppy about cutting down the tree
and smashing the tramps’ cabin.”
Mr. Beaver, Cuppy, and all the others in the colony were much
surprised when Toto and Sniffy told what had happened. Almost all
the grown animals, and certainly every one of the boys and girls,
went out to see the fallen tree and the smashed cabin.
“Well, you did a lot to help us,” said Cuppy to the two brothers;
“but we can’t use that tree in the dam.”
“Why not?” asked Toto.
“Because it fell the wrong way. It would be too much work to dig a
canal to it and float it to the dam. It will be easier to cut down
another tree. But I don’t know that we shall need any more as long
as the tramps have moved away. We need not make our dam any
bigger now.”
“Are all the tramps gone?” asked Toto’s mother.
“Yes, every one,” answered Cuppy. He was a wise old beaver, and
he knew none of the ragged men were left near what had once been
their shack of bark.
So that was another adventure Toto had—driving away the
tramps. And if I had told you, at first, that two little beavers, not
much bigger than small puppy dogs, could make a number of big,
lazy men move, you would hardly have believed me. But it only goes
to show in what a strange way things happen in the woods.
Everybody in the beaver colony had work to do.
Now that it was not needful to make the dam bigger, the beavers
turned to other work. Some of the canals they had dug had become
filled up at a time when there was too much rain and the banks had
caved in. Some of the beavers began to clear out these canals.
Others mended holes in the dam, and still others cut down, and
brought to the pond, tender branches of trees on which grew soft
bark for the small beaver children to eat.
Everybody in the beaver colony had work to do. There was not a
lazy one among them, and Toto and Sniffy worked as hard as any.
They had time to play, too, and I’ll tell you about that in another
chapter or two. Just now I want to speak about another wonderful
adventure that happened to Toto.
The little beaver boy was growing larger now. He was quite strong
for his size, and he was growing wiser every day. Often he went off
in the woods alone to hunt for tender bark, or perhaps for some
berries he liked to eat.
One day Toto was walking along near a canal he had helped to
dig. He was thinking of Don, and wishing he might meet the nice
dog again, and tell him about the tramps being driven away. And
Toto was also thinking of the little girl with the red mittens, whose
skate had come off on the ice.
Then, as Toto stepped from the woods into a little clearing, or
place where no trees grew, he saw something big—bigger than a
thousand beaver houses made into one.
“I wonder what that is?” thought Toto. “It looks something like the
shack the tramps had in the woods, but it is much nicer. I wonder if
it is a house?”
And then as Toto, hidden behind a bush, watched, he saw a little
girl and an old lady come out of the house (for such it was) and walk
away through the woods on a path.
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