1. B2B e-Commerce
International Issues
Legal Issues
The reach of law
Contracts
Web content
Ethical Issues
Taxes

2. International environment?
International Issues
The Internet is Global
What issues face
e-Commerce sites
operating in an
International environment?
Language Issues
Maintaining different language versions
Idiom differences and translation expenses
Customs and cultural differences
Legal differences

3. International Issues
Language Issues
How many language versions of your site will you create?
How will you decide?
Translation costs can be considerable (25 – 50 ¢ / word)
Some automation support is available
When is automated vs. human translation desirable?
Localization includes cultural modifications in a translation

4. International Issues
Cultural Issues
You must travel the world before you will realize how easy it is to offend someone with behavior that is perfectly polite or innocent where you come from
There are tons of great stories about business ventures that crashed on the rocks of cultural misunderstanding
It is easy to incorporate offensive or adverse content into a web page that is viewed by visitors from another culture

5. International Issues
Cultural Issues (cont.)
Some cultures dislike using credit cards for purchases
Some cultures view shopping as a social experience
Many Europeans shop for groceries every day
Haggling is an integral aspect of shopping in many cultures
Your potential market may not be comfortable with key elements of e-Commerce
Some countries don't allow or filter Internet content based on religious or cultural preferences

6. International Issues
Infrastructure
Most countries don't have the same phone services and Internet connectivity that we enjoy here
Service is unreliable or 'noisy' in some areas
Some countries have a fixed per minute or per unit charge for any call, including ISP connections
Many countries have no competition for telephone services with little incentive for innovative services
Bribes or gifts are needed in many places for phone line installation or maintenance

7. "Companies that do business on the Web expose themselves to
Legal Issues
"Companies that do business on
the Web expose themselves to
liabilities, often unintentionally,
that arise from the environment of
business today. That environment includes
laws and ethical considerations that may be different from those with which the business is familiar."

8. Legal Issues
The Reach of Law
Governments exercise jurisdiction within a geographic boundary
Jurisdiction applies to people and property inside that boundary
Governments do not exercise jurisdiction over citizens and assets located in another government's jurisdiction (unless you invade the country)

9. Legal Issues
The Reach of Law (cont.)
Jurisdiction is automatically applied to residents of a state
Jurisdiction can be applied through other means
Forum Selection Clause of a contract in which the parties agree to submit to a particular jurisdiction in the event of a dispute
Long-Arm Statutes enacted by states give them jurisdiction over persons who transact business in the state
Application of these rules is unclear in e-Commerce

10. Legal Issues
The Reach of Law (cont.)
International jurisdiction is governed by treaty unless the parties are physically located in the country seeking to exercise jurisdiction
Assets located in foreign countries can be attached to satisfy local judgments
U.S. courts will enforce foreign judgments if personal jurisdiction can be established and if treaty provisions provide for support

11. Legal Issues
The Reach of Law (cont.)
Companies must be aware of their exposure to foreign legal processes
Companies must be aware of the actions that can be considered actionable in the countries where they are exposed
Companies must take steps to limit the ability of citizens of a country to use e-Commerce facilities if such use would be actionable and when the company is exposed in that country

12. Consider these steps in the context of a real estate transaction
Legal Issues
Contracts
A contract exists when there is an offer and an acceptance
There are some interesting nuances to offers and acceptances in retail sales
Publishing a catalog is not an offer
Placing an order is the offer
Accepting the order is the acceptance
The catalog is the advertisement that an offer at the published price is likely to be accepted
Consider these steps in the context of a real estate transaction

13. Legal Issues
Contracts (cont.)
When is a contract created in an e-Commerce transaction?
Do laws in different countries determine contract creation differently?

14. Legal Issues
Web Content
Web sites publish content for all the world to see
Web site operators must be very careful to ensure that they have the legal right to use any images, audio, or textual content that appears in their sites
Many companies are incredibly protective of their trademarks and have laws to back up their claims
Improper use of names or logos may imply endorsements and lead to legal action
Claims about products are subject to FTC regulations
Keep an eye on your web development team!!

15. Ethical Issues
'Normal' Ethical Considerations
Companies should be guided by the same standards in their e-Commerce activities that they would apply to traditional commerce
Internet Culture and Ethics
Netizens have certain cultural expectations about behavior that sometimes fly in the face of normal practices
Information should be free
Privacy is paramount
Netizens can spread the word quickly when aroused

16. Ethical Issues
Privacy
Privacy is becoming increasingly important in Internet dealings
Americans have traditionally been private people and expect their privacy to extend to their online activities
Legislation and consumer pressures have served to shape privacy practices by companies
Keep an eye on your developers and watch those cookies
A privacy policy is an excellent idea

17. Taxes
The whole issue of taxes on the Internet is up in the air
Some tax issues, such as taxing online sales, are governed by the same tax laws that govern mail order sales
The ability of taxing authorities to detect taxable purchases over the Internet is sometimes difficult
The ability of sellers to detect when taxes should be collected can also be difficult and expose the seller to civil and criminal penalties

18. Taxes (cont.)
Nexus is established when a company has a presence in a jurisdiction
Many activities can create nexus
Operating a physical location such as a store, warehouse, or administrative office
Delivering products using the company's own trucks
e-Commerce companies must be deliberate when establishing nexus to avoid violating tax requirements