e-business, law, liability

[aglamb]

I am currently in the process of forming an e-business wherein I sell academic and business writing examples. The writing and research my company would do would, in the academic arena, be intended solely for use as an educational guide, aimed at improving a students ability to do the work themselves. However, the work could very easily be used inappropriately by the student, i.e., turned in as the students' own. I understand that in this business there could potentially be significant legal risk, which I am looking, of course, to minimize. I realize a few things: 1) I will most likely need to secure professional consultation at some point in the near future; 2) I cannot protect myself from everything; and 3) I'm being a little vague. Please see TRUSTEES OF BOSTON UNIVERSITY, v. ASM COMMUNICATIONS, INC. et al UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MA (33 F. Supp. 2d 66; 1998 U.S. Dist.). This may give great insight as to what I'm up against. Hereby, my questions are this: how is an e-business different, in this case, from a regular business, i.e., are there any stipulations that do/do not apply to me in this situation?; what type of business entity would be most appropriate? a sole-proprietorship, an LLC? and where should I incorporate? can I incorporate in a state other than that serving as my person domicile? anything else you might think of that I should consider? Any help would be greatly appreciated. Thanks so much for your time.

aaron

 

[Michael Wechsler]

Originally posted by aglamb:
I am currently in the process of forming an e-business wherein I sell academic and business writing examples. The writing and research my company would do would, in the academic arena, be intended solely for use as an educational guide, aimed at improving a students ability to do the work themselves. However, the work could very easily be used inappropriately by the student, i.e., turned in as the students' own. I understand that in this business there could potentially be significant legal risk, which I am looking, of course, to minimize. I realize a few things: 1) I will most likely need to secure professional consultation at some point in the near future; 2) I cannot protect myself from everything; and 3) I'm being a little vague. Please see TRUSTEES OF BOSTON UNIVERSITY, v. ASM COMMUNICATIONS, INC. et al UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MA (33 F. Supp. 2d 66; 1998 U.S. Dist.). This may give great insight as to what I'm up against. Hereby, my questions are this: how is an e-business different, in this case, from a regular business, i.e., are there any stipulations that do/do not apply to me in this situation?; what type of business entity would be most appropriate? a sole-proprietorship, an LLC? and where should I incorporate? can I incorporate in a state other than that serving as my person domicile? anything else you might think of that I should consider? Any help would be greatly appreciated. Thanks so much for your time.

It would seem to me that you want to provide research that could be used by unscrupulous students to hand in as their own papers? The case was dismissed and it would seem difficult for universities to sue you. I would definitely have a legal professional look at your terms of service and puchase options. you can always protect yourself more if terms state that the purchaser agrees that use of such items will not be used for fraud or misrepresentation. It seems that ASM is intending to have their papers used for fraudulent purposes. There is a sliding scale to everything and greater protection might be afforded by limiting the marketing.

Incorporating will protect you from some things (e.g. financial implications of debts from the company going bankrupt) but not liability from criminal activity or fraud. You will likely be sued personally as well as were several individuals. In this case the court found that there was no civil liability on the law -- not because the defendants were shielded by any corporate status.