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Top 10 Issues for the E-Commerce Practitioner

By M. Kelly Tillery and David J. Shannon
August 23, 2003

As use of the Internet continues to grow, more e-commerce legal issues are confronting attorneys and their business clients.

What follows are the Top 10 legal issues counsel should be prepared to address as their clients expand their business into cyberspace.

Personal jurisdiction. Counsel must determine and try to control where their clients' business can be sued and what law will apply as a result of their e-commerce. Courts will apply a variety of factors to determine whether jurisdiction can be obtained in an e-commerce matter. For example, if the Web site is actively doing business in the jurisdiction (ie, buying and selling), then personal jurisdiction is generally found. If the Web site is only an information exchange and register, then jurisdiction depends on the level of interactivity and commercial nature of the exchange of information. Finally, if the Web site only provides information to entities in the jurisdiction, then courts will generally not find jurisdiction.

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