Virtual Organization

Ann Winbush

BUS/415

Virtual Organization E-Business Paper

May 22, 2007

C. Darnell Stroble

.

Abstract

Smith Systems Consulting describes the web as “the marketplace of the new

millennium” (University of Phoenix). The company, founded in 1994, focuses on

delivering “high value Web and business application services” in this marketplace. Most

of the current customers of Smith Systems are regional companies. However, the

company is expanding rapidly. The need for Smith System Consulting to expand their markets is perhaps the most fundamental reason for growth in the world. The limited size of domestic markets often motivates managers to seek markets beyond their national frontiers

In this paper, the writer will analyze the legal issues that Smith Systems Consulting may face when conducting e-business. Additionally, this paper will analyze issues that the company

may encounter while conducting international business and the conflicts of law that

pertain to these issues. Specifically, it will address the applicable law as well as the

court(s) of jurisdiction.

First, the writer will examine how Smith System Consulting Company currently uses standardize contracts for their company that are written in plain language. According to Gauby and Noone, L.L.C. (1996), legal counsel for Smith System Consulting, states these contracts to be fair and just to the company and their customers. (University of Phoenix). Smith System Consulting has rare copyrights and patents, since most of their business is believed to be work for hire basis.

Based upon the nature of Smith Systems Consulting’s business and the

information provided by the company’s legal counsel, some of the legal issues that the company may face are contract law, sexual harassment, and discrimination. According to Contract Overview (2007) A Contract law covers the legal implications of a contract. For instance, contract law determines what is and is not consideration, whether a contract is intended, or if the parties making the contract are legally competent. Besides, the contract law also states whether there are fraud or duress involved, or how a contract is terminated.

Additionally, the company will face issues related to the nature of e-business itself. In fact, the company will want to make known the law as it applies to trademarks and electronic contracts.

The company should be concern with protecting their trademark, Smith System Consulting. Trademarks are register names that can be sold in other countries. In other words, trademarks are valuable because they create uniqueness in the mind of customers. At the same time, Smith System Consulting should not want their trademark to become so well known that it is used to describe all similar types of products.

Smith System Consulting contracts currently are in electronic format. Only the company administrative staff, rather than a law firm can make changes within the contract The writer suggest that the company should realize the standard in contract law, and how it is applied to electronic contract. In the situation of contracts with international companies, Smith Systems Consulting should include a choice of law and forum selection clauses in their contracts. Besides, consumers and business can benefit from government enforcement of contracts.

According to Wikipedia (2007) the choice of law consists of a method in litigation of a case that involves conflict law. While forum selection clauses allows agreement from litigation of a contract to be initiated in a certain forum.

The writer also address other issue that Smith System Consulting may face within the company is sexual harassment that the EEOC defines as unwelcome sexual advances, request for sexual favors, and other verbal or physical conduct of a sexual nature when such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment. Every employer needs to understand how extremely important having a sexual