What is the legal framework of traditional and online business?

A commercial legal framework must be in place to facilitate, recognise and accomplish electronic transactions all over the world, for e-commerce to grow.

Commonly, the geographic location of the parties in the lawsuit determines the jurisdiction in a legal system attached. The traditional belief of jurisdiction is focused densely on the whereabouts of transaction involved in the dispute, to decide on the correct jurisdiction to adjudicate the dispute.

Nevertheless, since internet transaction is carried out through the network as a consequence, it does not accommodate to the traditional geographic boundaries. Over the years, individuals have discovered that in fact, the foundation of the internet has made it challenging to find internet users geographic location, as the internet is programmed to ignore instead of archive geographic locations.

Traditional companies must follow certain laws and regulations which govern all businesses operations. Those same rules must be followed by the companies which operate on the internet.

Unlike traditional business, companies operating over the internet face two extra complex circumstances when trying to follow the law. Firstly, the Internet allows businesses to reach outside normal boundaries. Companies which use internet automatically become international companies. Secondly, internet boosts efficiency and speed of companies connection. E-businesses who break the law or any ethical standards may be exposed to quick and harsh reactions from countless consumers as well as other people involved in the business like stakeholders once they know about the business activities.