The Law(s) of Cyberspace

Abstract

By maintaining a web site a hotel or hotel-management company may subject itself to being sued by an injured guest in the guest's home state (rather than in the state where the injury is alleged to have occurred). When web sites first appeared, there was some initial confusion in the courts regarding how to establish jurisdiction. Today most courts make distinctions among web sites based on whether they are passive (where the court will not exercise jurisdiction), conducting business (where the court will exercise jurisdiction), or interactive (where the court determines whether to exercise jurisdiction based on the facts). Some courts, however, cling to the idea that jurisdiction exists over any nonresident defendant who maintains a web site that is accessible in their state. The U.S. Supreme Court has confirmed that so-called "forum selection" clauses can be used successfully to avoid being dragged into a distant court. Such clauses that are contained on an internet web site and which define where dispute settlement must take place will frequently be given full force and effect in a lawsuit.