Internet Jurisdiction for E-commerce

Abstract

ABSTRACTInternet jurisdiction is an area of increasing concern to e-commerce because of the growth in cross-border e-tailing, both within the United States and globally. Therefore, the need for a global solution is also increasing. In response, this article first defines Internet jurisdiction, also known as cyber jurisdiction, and discusses the risks of Internet jurisdiction for retailers and consumers. Drawing from legal research, the authors examine the legal theories for jurisdiction and the application to e-commerce. Their focus is on United States law because both US and foreign businesses must understand US jurisdictional law due to increased globalization from expanding international trade and more frequent contact with US companies and markets brought about by the Internet. Since standards and case law are still developing worldwide, the authors conclude by providing managerial recommendations to reduce the uncertainty of jurisdiction, should legal action be initiated.