The legal system is dependent on local jurisdictions under common law. Historically, one has to remember that before the age of the internet, airplanes and telephones, the vast majority of business was done locally. Technology has rapidly changed the way people do business but there has not adapted to the changes. There is no one body that governs international trade.
What are the implications?
If you buy a product from a local supplier in your State, and it turns out that the item is faulty, you can go back to your supplier to work out repair or replacement and if they don't help you, you can take the matter to local Trades office or file legal action in your state. If however, you buy a product outside your jurisdiction, you must file a claim in the State, where the supplier is located. You can only use a lawyer in the State where you file your action, your local llawyer can only act as a consultant and has no authority to represent you in court or to serve papers.
Therefore, we have a world which is governed by local laws and yet the businesses and individuals are now actively trading outside of their local area.
Governments are trying to make laws about content on the internet but have no jurisdiction to enforce those laws. This has created havens in small developing countries, that are happy to accept companies that want to run online gambling websites that may be outlawed in their jurisdiction or companies that wish to reduce their tax liabilities by opening up bank accounts in developing countries.
We see arising now a homogenizing of local laws on issues like SPAM, and even sending a international letter from anywhere in the world involves the completion of almost identical forms, Governments are making agreements, in an attempt to be relevant in a world where people are able to trade more freely and where digital communication has enabled businesses to work, almost without physical boundaries.
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