Borders & Jurisdiction
4 Elements that Define a Relationship Between Geographic and Legal Boundaries
- Power: form of control over physical space and people and objects that reside in that space
- Effects: impact of a person’s behavior
- Personal or corporate actions have stronger effects on people and things that are nearby vs. those far away
- When business done online, can cause problems even if laws comply with that country because it may contradict laws of other countries
- Legitimacy: idea that those subject to laws should have some role in formulating them
- Online businesses must deal with wide variety of regulations from the government
- Notice: one set of rules has been replaced by a different set of rules
- Constructive notice: subject to new laws and cultural norms when cross international border, even if not specifically warned
- Ignorance of law not a sustainable defense
Jurisdiction and the Impact it has on the Internet as well as the Difficulties with Jurisdiction on the Internet
- Jurisdiction: the ability of the government to exert control over a person or cooperation
- Breach of Contract: another party sues for failure of another party to comply
- Tort: intentional or negligent action taken by legal entity causes harm to another legal entity
3 Kinds of Jurisdiction
- Subject-Matter Jurisdiction: court’s authority to decide particular type of dispute
Examples: copyright, bankruptcy, tax matters
Rules for determining are clear and easy to apply
- Personal Jurisdiction: determined by residence of parties
Most common way to submit is by signing contract includes statement known as “forum section clause”
Contract enforced according to laws of a particular state
Long-arm statutes: details of laws for individual states
Most common torts include defamation, misrepresentation, fraud, & theft of trade secrets
- Jurisdiction in International Commerce: governed by treaties between countries engaged in a dispute
Judicial comity: when court voluntarily enforces other countrie’s laws or judgments out of friendly civility
Difficulties with jurisdiction due to the conflict of laws: when laws address same issue in different ways
- Privacy policies & security policies reflect rules and regulations of businesses
- Electronic transactions difficult to tell who has jurisdiction or apply law over transactions
Example: if someone buys computer overseas and doesn’t work and dealer refuses to settle, which country’s laws apply?
- Electronic communication and transaction act: determines most transactions electronically are dealt with in similar ways to traditional transactions
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