Lee A. Bygrave (red.) YULEX 2002 - Universitetet i Oslo

DETERMINING APPLICABLE LAW AND
JURISDICTION IN CONTRACTUAL DISPUTES
REGARDING VIRTUAL ENTERPRISES 1
EMILY M. WEITZENBÖCK
Abstract
This paper discusses the need for choice of law and jurisdiction clauses in the
contract entered into between virtual enterprise members and also in the
contracts between the virtual enterprise and external parties such as customers
or suppliers. There is first an examination of what happens where there is
no express jurisdiction clause, followed by an analysis of the situation where
there is no express choice of law clause. It is shown that where there is no
such express clauses, it may be very difficult for the parties to have a measure
of legal certainty the moment a dispute arises as regards where to sue and
which law will apply to resolve their dispute. The discussion focuses on the
legal situation in Western Europe – ie, in EU and EFTA countries.
1 Introduction
The use of information and communications technology (“ICT”) enables
small, specialised firms – regardless of their geographical location – to communicate
effectively, pool together their resources and core competencies by
1 This paper was originally prepared for the 8 th International Conference on Concurrent
Enterprising, Rome, June 2002, and is reproduced in the proceedings of the conference: see
KS Pawar, F Weber & K-D Thoben (eds), Proceedings of the 8 th International Conference
on Concurrent Enterprising: ’Ubiquitous Engineering in the Collaborative Economy’ (Nottingham:
Centre for Concurrent Enterprising, University of Nottingham, 2002; ISBN 0
85358 113 4), pp 27–34. Work on this paper has been partly funded by the European
Commission through IST Project ALIVE (workgroup on Advanced Legal Issues in Virtual
Enterprise) (IST-2000-25459). This paper is the sole responsibility of the author and does
not represent the opinion of the European Community. The Community is not responsible
for any use that might be made of the content of the paper.