Doing Business On the Internet is a Sign of the Times -
Be Sure You Know Who You Are Doing Business With
By: Maria
Speth and Sharon Sprague
We are all used to clicking the "I agree" button and frequently
we click without reading the lengthy terms and conditions.
While many are long, these virtual agreements bring with them
rights, responsibilities and restrictions. By clicking "I
Agree", you have created a contract. In the on-line
order process, frequently you will click on an agreement button,
again creating a contract. While we easily create
contracts on the Internet, there may be uncertainty about the most
basic term of a contract - the identity of the party that you've
entered into a contract with.
Before you hire a service provider or order goods on-line, know
who you are doing business with. This is a simple
concept. Due to the ease of on-line purchasing, people are
frequently entering into contracts without knowing the person or
business on the other side of the computer screen.
The Internet has long been known as "the great equalizer."
A technologically savvy web developer can design a website for a
small company that rivals that of a large corporation. A
professional and robust website may signal stability and a great
company to do business with, but it could just as easily be a
cash-strapped start-up organization. Investigate the company beyond
just visiting and viewing their website.
If ordering goods:
- Check seller ratings if available.
- Order using a credit card, as the credit card company may
assist you in attempts to get your money back that you spent on an
order.
- We do NOT recommend using a debit card for any on-line
purchases.
- Consider using a single credit card with a very low limit for
all on-line purchases.
- Check consumer sites such as www.ripoffreport.com to see
what other's experience has been with this seller.
If you are considering entering into a contract for services or
ordering goods that have substantial value, engaging in basic due
diligence is not time consuming and it is a better alternative than
trying to find someone after they owe you money or you have
received a defective product. For example, you are looking to
hire a web designer to create a website for your company.
Steps that you would likely take to find a developer are:
- Seek out a web developer on the internet
- Ask for referrals from other business owners
- Interview someone that you met at a networking event
- Traditional media advertising
It is likely that the developers will come to your office to
make their presentation or they might even perform their services
on-line through a webinar or web meeting. Chances are good
that you will never visit their office. If your new website
is unacceptable, or the website was not completed after you made a
payment or paid a deposit, do you have the information to get your
money back or to file a lawsuit if necessary? Before you decide to
do business with an individual or company, consider the
following:
- Make sure you have verified the physical address of the person
or company. A physical address is usually necessary to serve
the person with a lawsuit. Even if the address does not look
like a post office box, check it out on the Internet using one of
the map tools such as Google Maps or Mapquest. One of our
clients found out that the address for the service provider was
actually a UPS Store. Not surprisingly, the address was no
longer accepting mail because the service provider had not paid
their bill to the UPS Store! We knew it was a UPS Store
because we looked at it on Google Maps satellite and saw a shopping
center rather than the home office. There are many other ways
to use the Internet to confirm an address, including directory
listings and property tax records. If you only have a post
office box for an address, you will want to perform some additional
due diligence.
- For businesses, check with the Arizona Corporation Commission -
http://www.azcc.gov/divisions/corporations/contact.asp
to check the status and validity of the company and verify contact
information. It will also list the statutory address for the
corporation and their address.
- Some businesses are licensed by the State such as a contractor,
electrician, plumber, or handyman. Check for state licensing
information with the Arizona Registrar of Contractors at http://www.azroc.gov/ to be sure
the business has the appropriate license. You can also see if
any complaints have been filed against the business. The state
website, www.azsos.gov has
"business filings" link that will also provide information about
companies doing business in Arizona.
- While very brick and mortar, you could always take a drive to
see the physical business and make a site visit.
Spending a little time before you click the "I Agree" button or
enter into a contract with a previously unknown service provider
can protect you and your company.
About the authors: Maria
Crimi Speth is an IP attorney and is a shareholder in the
Phoenix business law firm of Jaburg Wilk. She heads the intellectual
property law department and assists client with trademark, IP
law and Internet issues. Maria is a frequent speaker on
intellectual property law and is the author of the book,
Protect Your Writings, a Legal Guide for
Authors. Sharon Sprague's primary practice
area is commercial litigation,
in addition to her work in intellectual property, collection,
and corporate matters.
This article is not intended to provide legal advice and
only relates to Arizona law. It does not consider the scope of laws
in states other than Arizona. Always consult an attorney for legal
advice for your particular situation.
3200 North Central Avenue
. Phoenix . Arizona