First day of my course "digital law" in ESC Rennes

1. Online
terms & conditions
!Jacques(Folon(
www.folon.com(
!
Partner(Edge(Consulting(
!
Maître(de(conférences((
Université(de(Liège((
Chargé(de(cours((
ICHEC(Brussels(Management(School((
Professeur(invité((
Université(de(Lorraine((Metz)(
ESC(Rennes(
http://www.nyls.edu/institute_for_information_law_and_policy/conferences/visualizing_law_in_the_digital_age/

2. Online terms & conditions are binding contractual offers and are
today the most complex legal environment

3. Basic principles about
contracts

4. Nemo censetur ignorare legem
legal fiction!
!
!
!
!
!
7

5. freedom of contracting
8
http://www.scuole.vda.it/mpf/images/droit_economie/image020.jpg

6. Consensualism
9
Source de l’image: http://www.contrat-agile.org/images/balance.jpg

7. principally a contract must not be in writing
http://mende.blogs.midilibre.com/media/00/01/524903691.JPG

8. 9
But online contracts must
be saved and archived by
the merchant

9. Consent
◆ free!
◆ understanding!
◆ mistakes!
◆ consumer
protection!
◆ Cooling off period
http://mpchristianity.com/wp-content/uploads/2009/11/james-bond-holding-gun-600x360.jpg

10. A contract is a law for the parties
12

11. DON’T FORGET!
A WEDDING CONTRAT IS ONLY WRITTEN
FOR THE DAY OF THE DIVORCE !!!
13

12. ONE MAY NOT SIGN A CONTRAT!
FOR A THIRD PARTY
• PROXY!
• POST RATIFICATION!
• POWER OF ATTORNEY
14
Source de l’image: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTweadE3u2MHLsU2pXJe4eTnsFakN_4jleT8W5g2XFTQj4ON3vU

13. A BADLY WRITTEN CONTRACT IS A
POSSIBILITY OF CONFLICTS
Source de l’image: http://media.comprendrechoisir.com/public/image/public/studio/image/content/259184/mainImage-main-4346798.jpg

14. THE ONE WHO HAS THE PEN !
WRITES THE LAW
16
Source de l’image: http://www.lexisnexis.com/Community/corpsec/resized-image.ashx/__size/550x0/__key/CommunityServer.Blogs.Components.WeblogFiles/business-law-blog/fine-print-contract.jpg

15. THE MORE IMPORTANT READER !
IS THE JUDGE!
17
Source de l’image: http://phandroid.s3.amazonaws.com/wp-content/uploads/2011/07/judge-judy.jpg

16. ITERPRETATION ONLY EXISTS!
IF THE CONTRACT IS UNCLEAR
http://cache.20minutes.fr/img/photos/20mn/2009-07/2009-07-21/article_magistrat.jpg

17. THE LAW MAY ADD OR SUPPRESS SOME
ARTICLES OF A CONTRACT !
19
http://www.assurances-et-mutuelles.com/wp-content/uploads/2011/09/loi-chatel.jpg

18. LEGAL ADVISER OR LAWYER
• LEGAL ADVICE!
• CONTRACT!
• COURT CASE
22
http://media.comprendrechoisir.com/public/image/appel-avocat-ou-notaire-main-7857840.jpg

19. WHO IS A « GOOD » LAWYER?
24

20. ONE MAY DISCUSS FEES
• TIME SHEET!
• HOURLY RATE!
• SUCCESS FEE
25
http://www.capital.fr/var/cap/storage/images/media/images/photo-v2-457x222/rea/argent-noir/5482686-1-fre-FR/argent-noir_large.jpg

21. 30
UNBALANCED!
➢CONSUMER (=> PROTECTION)!
➢SIZES IN B2B!
➢TECHNICALITIES!
➢LACK,OF PRECISENESS

22. 35
!
•GOOD!
•SERVICE!
•B2B!
•B2C
REASON OF THE CONTRACT

23. 51Source: http://www.selogerpro.com/zi/e3/32/67632.jpg 25
• WHAT ARE
THE
CONTRACTUAL
DOCUMENTS ?

24. 25
MAIN CONTRACTUAL
CLAUSES

25. The consumer has the right to contractual
terms written in plain and understandable
language and this applies as well online.
!
Where there is doubt about the meaning of a
term, the interpretation most favourable to the
consumer shall prevail

26. Any consumer in the EU, also in the
digital environment, is protected
from unfair standard contract terms
by traders that create an
unreasonable imbalance to the
detriment of the consumer.
!
If a contract contains such terms, the
consumer is not bound by them,
although the contract itself usually
remains valid.

27. • BE PRECISE
• CONSUMER ? VAT?
• COUNTRY OF THE
MERCHANT
• INFORMATION
REQUESTED BY
CONSUMER
PROTECTION
WHO ARE THE PARTIES ?

28. Every online consumer concluding a contract in the EU has the
right to have easy, direct and permanent access to at least!
!
the name and geographic address of the provider, !
the electronic mail address or website, !
the trade register in which the provider is entered and his
registration number,!
the professional title and professional body with which the
provider is registered, !
theVAT details where applicable !
any other detail allowing rapid and effective contact with the
provider!
access to codes of conduct to which the provider subscribes !
to contract terms and general conditions in a way that allows
him to store and reproduce (print) them.

29. WHO IS THE MERCHANT ?
• WELL KNOWN?!
• LOCALIZED IN AN
UNUSUAL
COUNTRY!
• E-REPUTATION ?
http://gamersblogfr.files.wordpress.com/2012/06/a

30. 59
• IMPORTANT FOR
INTERPRETATION
• IMPORTANT FOR
THE
UNDERSTANDING
WHEREAS
http://www.lanouvellerepublique.fr/var/nrv2/
storage/images/contenus/articles/2013/02/01/la-
sensation-beckham-au-psg/24704292-1-fre-FR/

31. ENTRY IN FORCE
➢ COOLING OFF PERIOD
OF 14 DAYS!
➢ PRODUCT OR SERVICE
UNAVAILABLE!
➢ SUSPENSION CLAUSE!
http://www.linternaute.com/argent/immobilier/maitriser-ses-charges-de-copropriete/image/date-anniversaire-contrat-est-moment-remettre-compagnies-concurence-obtenir-994183.jpg

32. TYPE OF CONTRACTS
• T & C => NO NEGOCIATION!
• AGAINST MONEY - FREE -
FREEMIUM!
• ONE SHOT - MONTHLY!
• GOODS OR SERVICES!
• DIGITAL GOODS!
60
http://www.barreau-annecy.com/images/stories/contrats.jpg

33. 61
• FIXED PRICE
• MUST BE CLEAR
• ONE PAYMENT OR SUCCESSIVE
• ON DELIVERY - BEFOREHAND
• LATE PAYMENT INTERESTS
• DELIVERY INCLUDED?
33
PRICE

34. WHAT IS SOLD ?!
INTELLECTUAL PROPERTY?
65

35. Every consumer in the EU has the
right to receive clear, correct and
comprehensible key information
from a trader about the product or
service before making an online
purchase.!

36. 37
This information must include the main characteristics of
the product,
!
price inclusive of taxes,
delivery costs,
the arrangements for payment, delivery or performance
identity and geographical address of the trader,
the existence of a right of withdrawal or cancellation (fo
products which involve such right),
the period for which the offer or the price remains valid
if applicable, the minimum duration of the contract.

37. 38
Unless contracts are concluded exclusively by exchange
of electronic mail or by equivalent individual
communications, this information must also contain the
different technical steps to follow to conclude the
contract; whether or not the contract will be filed and
accessible; the technical means for identifying and
correcting input errors, and the languages offered for
the conclusion of the contract
!
When the consumer places his order online, he has the
right to receive an acknowledgment of the receipt of
the order without undue delay and by electronic means

38. Drugs, forbidden products (in certain
countries ), medical products, etc.
http://www.lacapitale.be/sites/default/files/imagecache/pagallery_450x300/1893094842_ID6494725_drogue_125820_H36EUE_0.JPG

39. 68
• FIXED TERM OR
NOT
• IF NOT HOW TO
STOP IT
• WHAT IS THE
BEST WAY?
40
LENGHT

40. 69
• DELIVERY OF SERVICE
• CONFLICT OF LAWS
• CONTRACT APPLICABLE LAW
41
COUNTRY

41. 70
• IMPORTANT IF APPLICABLE
• Copyright vs. Droit d’auteur
• TRANSFER OF RIGHTS
• WHAT IS AUTHORIZED?
Source: http://digitallife.vanderbilt.edu/copyright2.jpg
42
INTELLECTUAL PROPERTY

42. 71
• WHEN ?
• ON DELIVERY?
• WHO IS RESPONSIBLE
• EVIDENCE OF DELIVERY
•
43
TRANFER OF
OWNERSHIP

43. 72
• B2B!
• INternational
COmmercial
TERMS
44

44. 7345

45. 74

46. 7546

47. 76
• DELIVERY & RECEPTION
• DOES DELIVERY MEANS ACCEPTANCE?
• ACCEPTANCE PROCEDURE IS NEEDED
TRANSFERT DE !
LA PROPRIETE

48. 77
• « milestones »
• PAYMENT FOR WHAT IS DONE AND ACCEPTED
• PERIODIC MEETINGS
50
PLANNING FOR SERVICES

49. 78
• BENEFITS!
– NO NEWS NO RELATIONSHIP!
– NEW PRODUCTS OR SERVICES!
– ANTICIPATE PROBLEMS!
– PRE-COURT CASE FILE
TIMELINE
MILESTONES

50. 79
• UNSEEN AT RECEPTION
• ONLY FOR GOODS
• WHO IS RESPONSIBLE?
• UPGRADING OR REPAIRS POSSIBLE
HIDDEN DEFECTS

51. PRIVACY POLICY IS MANDATORY FOR B2C

52. • HOT LINE!
• WEBSITE!
• FAQ!
• SERVICE LEVEL AGREEMENT
TECHNICAL ASSISTANCE

53. 81
http://4.bp.blogspot.com/_PBP29OxRzfc/SaJqohXJ1oI/AAAAAAAAAFA/x3MIbLJPe-E/s400/SLA.JPG
Texte
SERVICE LEVEL
AGREEMENT

54. 88
CONFIDENTIALITY

55. • LIMITS RESPONSIBILITY!
• LEGAL WARRANTY B2C!
• AGAINST THIRD PARTY
CLAIMS IN IPR!
• AMOUNT MAY BE LIMITED
WARRANTY

56. • ACCEPTABLE
• UNLESS IF NOT
LEGALLY ACCEPTED
• MAY NOT BE EXCESSIVE
LIMITATION !
OF !
RESPONSIBILITY

57. BODY SHOPPING
✓ MISSION!
✓ WHO IS THE BOSS?!
✓ LOCAL RULES!
✓ MATERIAL !
✓ CONFIDENTIALITY!
✓ SECURITY
92
http://investban.e-monsite.com/medias/images/c

58. CHANGE IN THE T&C!
!
THEY MUST BE
ACCEPTED BY THE
OTHER PARTY

59. 60
http://blogs.iq.harvard.edu/netgov/2010/05/facebook_privacy_policy.html

60. • BASIC
– REIMBURSE OR SEND BACK
• CAUSES MUST BE
DEFINED
INEXECUTION

61. WHO MUST
DEMONSTRATE THE
EVIDENCE OF THE
CONTRACT!
!
IN B2C!
IN B2D

62. 95
CANCELLATION !
CLAUSES
• A PARTY DID NOT
FULFILL ITS OBLIGATION
• BANKRUPCY
• …

63. 96
• IN ORDER TO
COMPENSATE
– A DAMMAGE
– BAD PERFORMANCE
– TIMING NOT
RESPECTED
• THEY MUST NOT BE
EXCESSIVE
65
PENALTIES

64. FORCE MAJEURE!
!
IRRESISTIBLE!
NOT PREVISIBLE!
NOT DEPENDING ON A PARTY!

65. 98
• PREVIOUS
ACCEPTANCE
• RESPONSAIBILITY
TRANSFER OF THE!
CONTRACT

66. 99
SUB CONTRACTORS
• IDENTITY
• PREVIOUS ACCEPTANCE
• DEFINITION OF QUALIFICATIONS
• RESPONSIBILITY

67. 10170
MEDIATION

68. 10271
ARBITRATION OR COURT ?

69. 103
APPLICABLE LAW & TRIBUNAL

70. 71
Drafting T&C is a quite
complex job

71. 105
QUESTIONS ?

72. 10675

73. 10777