Jurisdiction Alert

September 7, 2000

The beauty of the Internet is that in a matter of minutes one is able to reach out and touch people statewide, countrywide, and even worldwide. In fact the ease of communications and accessibility has given some retailers the ability to expand their sales beyond the borders of their own state. Although this introduces more customers and the potential of a greater profit there are some legal ramifications associated with expansion. A perfect example is seen in American Eyewear Inc. (American) v Peeper’s Sunglasses and Accessories (Peeper’s), where Peeper’s, a retailer operating outside of Minnesota established the necessary requisites to be brought into court in Texas. The old saying, “the long arm of the law”, reached out and established that Peeper’s was doing enough business in Texas and had purposefully engaged in business relations with Texas to give the Texas courts jurisdiction over it.

Advice

Businesses engaging in e-commerce should seriously consider where they want to do business. Jurisdiction is just one issue affecting that choice.