Legal Question in Consumer Law in New York

Internet Auctions

In the case of internet auctions, what court can I sue the individual that sold the misrepresented item?

Small claims court of the state the seller lives in or

the state that the misrepresented goods were delivered to?


Asked on 5/25/01, 12:52 pm

1 Answer from Attorneys

Daniel Hawes Hawes & Associates

Re: Internet Auctions

This question can get really complicated really fast, and most of the complexity is technical legal stuff that probably won't matter. "Probably" is not "definitely", though, so you ought to call a lawyer in your area about the details. The issues are choice of law (which state's law applies to the contract), jurisdiction, and venue (where's the best place within a particular state to have the trial).

The real killer in this is likely to be jurisdiction. A court has to be able to exercise personal jurisdiction over both parties in this kind of dispute, and you're not sure whether a court in your state can exercise jurisdiction over the person in the other state, right? The clear and definite answer is, "maybe."

Did the other party transact business, in any way, in your state? Did you talk to him on the 'phone, receive a check in the mail from him, or any other single act of "transacting business"? If so, then your state may provide in a "long arm statute" that its courts may exercise jurisdiction over that person (some states require more interaction than that, but Virginia is a "single act" state).

If your dealings with the other party were strictly through the third party auction service provider, then you're both subject to the jurisdiction of the courts of whatever state that auction service provider is in (surprise!).

The law that applies is the law of the state in which the last act constituting the contract took place - normally that's the purchaser's acceptance of the seller's offer. That law applies regardless of what state the trial is in, so a Virginia court could apply New York law, for example.

Needless to say, you'll want to sue in the place that's most convenient for you, and most inconvenient for the other party. But if you want to get a judgment that you can take to the other party's home state to enforce, you've got to make sure that the court you select can get personal jurisdiction.

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Answered on 6/25/01, 11:17 am


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