Although the internet has played a key role in the proliferation of globalized economy through e-commerce, several critical issues ought to be examined and vividly addressed before venturing in business transactions that involve contracts. To begin with, jurisdiction is an important tool that should be used when conducting a business over the internet. It is noted that many business interactive sites tend to cross jurisdictional boundaries. Therefore, it is necessary for a business organization to be in a position of defending lawsuits regardless of the jurisdiction of the customer’s location. This involves establishing a mechanism of having legal obligations on the existence of two or more laws. For instance, the place of agreement should be known and the formalities for acceptance of contracts should be identified. Furthermore, the laws which regulate the distance contracts involving people that never meet face-to-face should be well formulated.
Business managers should be encouraged to engage specialists in mitigating the risks once they opt to conduct internet transactions involving contracts. This will enable them to handle the Conflict of Laws properly and retain prospective and potential customers. Furthermore, they will be able to know the law to apply when determining validity of the agreement and the place to carry out the arbitration. As a result, the transactions between the parties become easier and more efficient globally. Moreover, the managers ought to work hand in hand with their legal teams when creating contracts.
Recently I decided to take a risk of selling cosmetics online targeting consumers in Turkey. I am well aware that some internet credit card transactions are fraudulent that may hamper the growth of my business. Thus, I have decided to contact my customers over the phone for verification whenever they make an order. Moreover, the use of faxed copy of credit cards and signatures for large orders has enabled me to reduce the number of lawsuits. Furthermore, favorable policies, such as intellectual property protection and copyright, assist in solving disputes.