Question

Microbrain hosts a website that advertises its software products, features upgrades and patches for its existing products, and accepts orders from customers throughout the world. Bertha, who owns and operates Cheapo Vacations, Inc., a travel agency in Wyoming, orders from the website a copy of Microbrain’s Zifty software. Zifty is designed to help businesses obtain the best prices for their products and services. When Zifty is found to have a defect in its calculating program, Microbrain offers a patch on its website to fix the problem. Bertha has already lost profits because of the miscalculating defect, however, and files a suit against Microbrain in a Wyoming state court. Discuss all legal issues (and the answers thereto) contained within this question. Include in your answer a discussion of the relevant case study presentations and your comments thereto, (if applicable).

Answer 1

Some courts upheld jurisdictional tests on a Web page's usability basis. Other courts have concluded that a Web presence is not sufficient to support jurisdiction over a non-resident without more. In general, courts use a "sliding scale" method to determine the exercise of jurisdiction on the basis of communications over the intermediate network. On that scale, the exercise of personal jurisdiction by a court depends on the amount of business transacted over the internet by an individual or firm. A website that accepts customer orders and delivers upgrades and "patches" has a high level of interactivity. There may be a question as to how much business Microbrain transacts with Wyoming residents. If the company is substantial, it is probable the Microbrain will be subject to the jurisdiction of the court.