Sunday, May 23, 2010

Web Contract Jursdiction?

If an internet company facilitates web contracts between different individuals from many different states on a systematic basis, which jurisdiction (state laws) apply to the web contracts? Does the jurisdiction of an internet web contract apply where the host server is located? Or where the Offeror learns of acceptance? Or whatever State plays the most significant role in the web contract?



(*note: this is assuming that the web contract clearly outlines that the internet company%26#039;s home state laws apply and that UCITA has not been adopted by most states)



(*note: this is assuming that the web contract clearly outlines that its home state laws apply and that UCITA has not been adopted by most states)



Web Contract Jursdiction?





This is a complex question and it has no simple answer. Each State (in the US) has its own statutes governing jurisdictional issues, and the nature of the claim may determine the proper jurisdiction. In general, it can be where the customer resides, where the company resides or is doing business, or it can be Federal, if certain criteria are met. The language in the electronic contract may or may not limit jurisdiction. You should ask your attorney for advice.

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