Legal Question in Product Liability in Delaware
Service Contracts sold via the Internet
I am currently a claims adjuster for an automobile service contract company. I am in the beginning stages of forming an internet based service contract company, where customers can purchase a service agreement online. I know from working for my current company there are many different regulations that must be met for each state, i.e. bonds, insurance, every state is different. Because I am forming this company in Delaware and it will be internet-based, all sales will be made in the state of Delaware. My question is : If customers purchase my service agreement from a state that is not Delaware, will my company be held under that state's rules and regulations for service contract regulations or will just the State of Delaware's apply?
This is not an insurance company, it is a service contract company.
Thank You.
1 Answer from Attorneys
Re: Service Contracts sold via the Internet
Absolutely. Most state's courts will rule that you held the product out in their state, because you put it on the internet, and therefore volunteered to be held under the jurisdiction of any state court where your customers made internet purchases.
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