Do I really need all that, you might be thinking, I only run a small website providing custom donuts?
1. Limitation of liability
2. Choice of Law
Let’s take a look at our previous example again. Donut Forget Me is a business incorporated in Massachusetts, with a brick-and-mortar bakery in Boston. Our litigious customer Ann lives in North Carolina but has an intense craving for donuts from Donut Forget Me. She fills out an order online, and as the donuts are perishable, Donut Forget Me ships them overnight through FedEx. However, the smell of the donuts is so irresistible that the FedEx driver eats half the donuts before they arrive. Ann files a lawsuit against Donut Forget Me in North Carolina.
For example, let’s say that Donut Forget Me allows users to leave reviews of each donut it sells. Donut Forget Me receives approximately 20 reviews per week, and the majority are very positive. One day, Donut Forget Me realizes that it has received 40 new reviews in 24 hours; when the owner of Donut Forget Me investigates this issue, he discovers that a user named Mr. Clown has been posting obscene, pornographic, and inappropriate comments on his website. Mr. Clown has even gone so far as to provide advice on how to kidnap children with Donut Forget Me mini-donuts. Donut Forget Me’s owner immediately deletes the comments, but they keep appearing. He is at a loss as to what to do.