Question

In: Operations Management

Many companies that conduct transactions via the internet include a forum-selection clause in their on-line agreements....

Many companies that conduct transactions via the internet include a forum-selection clause in their on-line agreements. Discuss the following two questions: Is this fair to consumers who purchase an item over the internet? Should courts enforce the forum-selection clauses in those on-line agreements?

Solutions

Expert Solution

Yes. I think the forum selection clause is fair. In most forum selection clause, the seller chooses arbitration as the method of conflict resolution. This is comparatively a quicker method than lawsuit and thus is beneficial for both parties.

Courts should not enforce forum selection on these on-line agreements. This is because the decision to choose a forum for dispute resolution should be left to the parties who are signing the agreement.


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