Question

1. When can a court exercise jurisdiction over a party whose only connection to a state is via the Internet? In other words, when might there by sufficient minimum contacts to give a court jurisdiction over a remote party? For instance, Is a passive website that can be accessed from anywhere enough to establish jurisdiction or is more needed?

2. Why would a corporation prefer to be seen as ethical? To whom does a corporation owe a duty and what if it finds itself subject to conflicting duties?

Answer 1

1. A company putting a Web site on the Internet should remain aware that its Web site may expand the geographic scope of its business. Depending on the nature of the business and the Web site content, the company might now be directing its activities toward customers in other states and countries. This makes it subject to foreign laws and regulations governing business activities and possibly subject to jurisdiction in foreign courts. Thinking in advance about the nature of its business and the content of its Web site will help the company assess the risk of its being hailed into a foreign court, even if definitive answers are not available.

Some protective measures may be available. The company might use click-through agreements or disclaimers to clarify a geographic focus. Trademark searches will help assess the risk of a trademark infringement suit resulting from use of the Web site and help pinpoint the location of potential plaintiffs. Where a trademark infringement suit is anticipated, a preemptive lawsuit can be filed in the company's home state or where the domain name registrar is located. A company can perform a global review of the laws governing its industry to identify particular jurisdictions where it might become subject to suit. Once it identifies specific problem states or countries, it can obtain an opinion regarding that jurisdiction's laws and case law regarding Web site based jurisdiction. Where a potential problem exists, the company can bring its business methods into compliance with the problem jurisdiction's laws. No company will be able to completely predict or prevent being sued in foreign courts. However, being aware of the problem is the first step in minimizing the risk it creates.

2 Consumers may be less willing to buy products ofcompanies that appear to be unethical.  Investors may prefer to invest in a firm that is perceived as ethically responsible. Suppliers may prefer to do business with ethical firms. In other words, socially responsible activities can improve profits.

A corporation owes a duty in favour of the customers, employees, suppliers and as a whole to the society because corporation uses the resources of society so it is their responsibility to do favours to the society in various manners and if the corporation find itself subject to conflicting their duties then the corporation tries to remove that conflict and starts working in favour of the society.