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Can any legal action be taken against me?
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Post Posted: Sat Nov 29, 2003 2:48 am
      Post subject: Can any legal action be taken against me?

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Hello.

I'm new to the group. I'm hoping that someone can help me with something that concerns me.

I just completed my first website. I intend to be an affiliate for a company that sells fine jewelry and gemstones. My question is best presented in a hypothetical manner...

Someone purchases an item from the company that I am an affiliate for and feels that the item has been misrepresented to him. He decides to take legal action against the company. He also takes legal action against me because I led him to the site where he made his purchase.

Is this possible?

Is there some way that I can protect myself (perhaps by some type of disclaimer) OR am I being concerned about something that is really of no concern at all.

I would appreciate any input. Thanks!
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cartess3



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Post Posted: Sat Nov 29, 2003 5:53 am
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Great Question!

Technically, the store owner (website/merchant) is responsible, since in a sense, you're technically just referring visitors to a store. Whatever happens at that store is the store owners problem.

To feel comfortable, you can put a disclaimer somewhere on your web site that basically states the following:

This site may contain links to other sites on the Internet that are owned and operated by third parties. You acknowledge that YOUR-SITE-NAME is not responsible for the operation of or content located on or through any such site.

Hope this helps,
Anthony
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AllanGardyne
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Post Posted: Sun Nov 30, 2003 12:15 am
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First of all, I'm not a lawyer or an an accountant.

Several years ago, when Viagra began being sold by affiliate merchants, there was a lot of serious concern that if someone died or suffered severe illness the affiliate who recommended the merchant could be sued for damages. At least one American lawyer believed it was possible.

As far as I know, no Internet affiliate has been sued over any products, but that doesn't mean it couldn't happen, especially in the United States.

The disclaimer sounds a good idea, but it would be wise to seek a legal opinion.

You could investigate getting insurance in case you are sued, but I imagine that would be expensive.

Most important of all, think about putting your Internet business into a limited liability company. It's sound practise to make the ownership of your business separate from the ownership of your house and any investments you have. If you're sued, you don't want to lose the lot.

Any lawyers reading this forum?
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eirikra



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Post Posted: Sun Nov 30, 2003 1:12 am
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I'm not a lawyer, but I do not think you should worry about being sued because you led the customer to the merchant. Imagine this: A person (a friend or a stranger - doesn't matter) comes up to you on the street and asks where the nearest jewelry store is. You tell him they have some great necklaces in one particular store and you explain to him where he can find the store. If he goes to the store and buys one of these necklaces based on what you said, but later feels that the item has been misrepresented to him and wants to take legal action against the company. Will that include you? Can you be charged for telling him that he can get a necklace that so and so great at that store?


Oh, a better example: You work as a salesman in a sport-shop and a customer walks in and want to buy some skates. You tell him all the positive things about a certain brand, and he buys it. Later on, he feels that the item has been misrepresented to him and wants to take legal action against the company. You will most likely not be the one that would be sued, but you're in danger of losing your job. In the same way as a merchant could terminate the contract with you.

Does this sound somewhat reasonable?
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cartess3



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Post Posted: Sun Nov 30, 2003 4:15 am
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Thanks for adding more clarity Allan, I should have dropped a line like you did stating that he should still seek legal advise, that portion slipped my mine Embarassed

As stated, its always a good idea to incorporate your business, in the event some unforeseen circumstances should arise, your personal goods are safe. Unfortunately, in business things can shake up unexpectedly. But, in the end, being an entrepreneur is the GREATEST THING IN THE WORLD Cool
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Charlie



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Post Posted: Sun Nov 30, 2003 10:35 am
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eirikra wrote:
Imagine this: A person (a friend or a stranger - doesn't matter) comes up to you on the street and asks where the nearest jewelry store is. You tell him they have some great necklaces in one particular store and you explain to him where he can find the store. If he goes to the store and buys one of these necklaces based on what you said, but later feels that the item has been misrepresented to him and wants to take legal action against the company. Will that include you? Can you be charged for telling him that he can get a necklace that so and so great at that store?

If true, I'd like to think "only in America". Needless to say, I'll be checking the small print in my personal liability insurance before I pop over. Wink

I've heard of "litigation society", but surely things aren't quite that bad.

Cheers,
Charlie.

P.S. I wholeheartedly agree with the idea of a limited liability business entity.
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Post Posted: Tue Dec 02, 2003 6:48 am
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Quote:
Imagine this: A person (a friend or a stranger - doesn't matter) comes up to you on the street and asks where the nearest jewelry store is. You tell him they have some great necklaces in one particular store and you explain to him where he can find the store. If he goes to the store and buys one of these necklaces based on what you said, but later feels that the item has been misrepresented to him and wants to take legal action against the company. Will that include you? Can you be charged for telling him that he can get a necklace that so and so great at that store


No, you can't. They could try, but most likely they would be laughed out of the lawyer's office.
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Post Posted: Wed Dec 03, 2003 4:31 am
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eirikra wrote:
Imagine this: A person (a friend or a stranger - doesn't matter) comes up to you on the street and asks where the nearest jewelry store is. You tell him...


The big difference between this example and an affiliate is that the affiliate is earning a commission for making the recommendation.

The affiliate is either an advertiser or "commissioned agent". I'll let the lawyers decide which.
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Charlie



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Post Posted: Wed Dec 03, 2003 10:17 am
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AllanGardyne wrote:
The affiliate is either an advertiser or "commissioned agent". I'll let the lawyers decide which.

Quite a number of affiliate aggreements actually use words to the effect of "as an affiliate, you are in no way an agent of this company".

Either way, I'd be very nervous about promoting medicines or anything financial (amongst other things) without either limited liability or a professional disclaimer on all published material.

And I'm not even US-based.

Cheers,
Charlie.
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Bobby



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Post Posted: Tue Dec 09, 2003 6:56 pm
      Post subject: Re: Can any legal action be taken against me?

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Just learning wrote:

Someone purchases an item from the company that I am an affiliate for and feels that the item has been misrepresented to him. He decides to take legal action against the company. He also takes legal action against me because I led him to the site where he made his purchase.

Is this possible?


Yes, it's possible. Whether or not it's probable is another matter.

The important thing to remember is that if you are sued & you win because it was a questionable suit to begin with, you still lose.

Why? If I sue you, you have to spend time in responding, securing an attorney, paying the attorney, maybe even losing sleep over it, etc. Even if the attorney spends only an hour on it and gets a judge to dismiss the suit, you've lost a bit of time, money, & energy.

In the U.S., legal risk is a factor in every for-profit endeavor and the cost of that risk is included in every service & product sold and commission earned. Therefore, it's important to exercise some responsibility and do some research before selling any product, whether you're an affiliate or a door-to-door salesman.

There is currently a case in eastern Tennessee where two teenage boys purchased a video game at a discount department store. After playing the game, they went out and shot at a vehicle on an Interstate and someone was killed. The family of the deceased is suing the discount department store, among others.

All the department store did was display the video game package on a shelf and sell it to the customer. Yet the retailer is now having to defend against this lawsuit.

Bobby
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Bobby



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Post Posted: Tue Dec 09, 2003 7:04 pm
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eirikra wrote:
....but later feels that the item has been misrepresented to him and wants to take legal action against the company. Will that include you? Can you be charged for telling him that he can get a necklace that so and so great at that store?


"Can you be charged" seems to be asking if you can be charged with a crime. Based on the description, I don't think it's a crime.

But if you're asking, "Can you be sued" the answer is "Yes." Whether or not it has merit and what it will end up costing you in time, money, & energy is another matter. All the person needs to do is file the necessary legal documents and you're sued.


Quote:
...s about a certain brand, and he buys it. Later on, he feels that the item has been misrepresented to him and wants to take legal action against the company. You will most likely not be the one that would be sued, but you're in danger of losing your job. In the same way as a merchant could terminate the contract with you.


You would likely be named as a defendant in addition to your employer. Most employers have insurance that will pay your defense costs as long as you weren't acting outside of established company policies.

Bobby
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Post Posted: Fri Dec 12, 2003 12:28 am
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Quote:
The family of the deceased is suing the discount department store, among others.


I hope the retail outlet is suing the parents of the kids for raising idiot children Exclamation
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Post Posted: Fri Dec 12, 2003 12:33 am
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Quote:
There is currently a case in eastern Tennessee where two teenage boys purchased a video game at a discount department store. After playing the game, they went out and shot at a vehicle on an Interstate and someone was killed. The family of the deceased is suing the discount department store, among others.


I have no information about this case, but it could be possible that the department store sold a video game that was intended for a certain age group (18 and above maybe) to kids that were under that age. If so, this may open them up to litigation. Not that they should be, in my opinion.
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Post Posted: Fri Dec 12, 2003 12:40 am
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Quote:
In the U.S., legal risk is a factor in every for-profit endeavor and the cost of that risk is included in every service & product sold and commission earned.


Just to add to your statement, legal risk is a factor in EVERYTHING you do in the U.S., from walking down the street to being robbed! If someone breaks into your home and injures himself in the process, you can be sued.
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Bobby



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Post Posted: Fri Dec 12, 2003 3:42 am
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Anonymous wrote:
I have no information about this case...



Here's a link to one of the articles - http://www.detnews.com/2003/technology/0311/11/technology-322463.htm
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