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Group: Rosibel Boniel Feb. 14, 2011 Miriam Claire Obquia Mrs. Clemencia Masiba

Comp.2 (review questions)

Chapter 7: The Environment of Electronic Commerce: Legal,Ethical, and Tax Issues

1. In about 100 words, explain why online businesses might have difficulty limiting the effects of their actions to a relatively small geographic area. The legal concept of jurisdiction on the Internet is still unclear and ill defined. The relationship between geographic boundaries and legal boundaries is based on four elements: power, effects, legitimacy, and notice. These four elements have helped governments create the legal concept of jurisdiction in the physical world. Because the four elements exist in somewhat different forms on the Internet, the jurisdiction rules that work so well in the physical world do not always work well in the online world.

2. In about 300 words, describe the differences between subject-matter jurisdiction and personal jurisdiction. Subject-matter jurisdiction is a court's authority to decide a particular type of dispute. For example, in the United States, federal court’s have subject-matter jurisdiction over issues governed by federal law( such as bankruptcy,copyright, patent, and federal tax matters) and state of courts have subject matter jurisdiction isues governed by state laws (such as professional liscencing and state tax matters.’;; Personal jurisdiction is, in general, determined by the residence of the parties. A court has personal jurisdiction over a case if the defendant is a resident of the state in which the court is located.

3. The advantages and disadvantages of issuing business process patents have been hotly debated by legal scholars and business people. One compromise proposal advanced by Jeff Bezos, founder of Amazon.com, is to allow the issuance of business patents, but only allow them to be effective for a short time, perhaps two or three years. In about 300 words, present logical and

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