2.B Service and Internet PJ

Question 1

What is the general rule for subject personal jurisdiction over a corporation conducting online business? What are the three elements to prove?

Answer 1

Mere passive website making information available on the internet is not, alone, sufficient to impose PJ.

Elements required are:

(1) direct electronic activity into the state (beyond a few isolated transactions);

(2) manifest intent of engaging in business or other interactions with State (examining website features/intended uses, designed to facilitate business transactions?); and

(3) that activity creates, for a person within the State, a potential cause of action cognizable in State’s court.

Question 2

What are the key examples for passive, active and interactive websites?

Answer 2

• describes services/can’t conduct transaction = passive
• large active website conducting business over internet generally (e.g., amazon) = active (means general jurisdiction)
• only a few transactions = not enough for active or interactive
• website features are to facilitate business transactions = likely interactive/personal availment

Question 3

What is the purpose of service and three most common forms of service?

Answer 3

Provides notice & opportunity to be heard. Can be served BY any non-party >18. Can be served ON

(1) defendant personally in forum;

(2) resident at usual place of abode who is of suitable age (>18) and discretion (aka substitute service); &

(3) on an authorized agent [CA: officer/manager/leave w/ person with apparent authority in business hours]

Question 4

What are the exceptions or immunities from service?

Answer 4

(i) there by fraud or deceit or

(ii) there for appearance in other action