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Q1. What are the legal uncertainties about jurisdiction threaten to undermine the widespread adoption of the Internet as a form of commerce?
1. The difficulties involved in enforcing foreign judgments. That is whose laws will be followed. International laws and treaties applying in most countries do not consistently provide for effective enforcement options for judgments obtained in a consumer's country of residence against business men in a foreign laws. As a result therefore, most customers may be wary of engaging in foreign, commercial transactions, regardless of its selling entices, because they are not convinced that familiar rules and protections will apply or that they will have adequate remedies in the event of difficulties in transactions.
2. The taxation of e-commerce. National tax authorities have responded poorly to the emergence of e-commerce involving intangibles. Existing tax laws are inadequate for dealing with the sale and delivery of intangible products over computer networks. The global, intangible, and malleable nature of e-commerce fundamentally undermines traditional international tax concepts and practices. This in turn undermines the adoption and use of internet.
Q2. What is legal compliance strategy of Nestle? What are its strengths? Can you think of any way it might be improved?
Nestle has embarked on fight strategy which involves effective use of consumer boycotts , counter pressure groups, co opting critics, and legal actions as its legal compliance strategy.
The strength of this strategy is manifested in its moral pressure on the firm which is more important than the economic pressure.
The strategy can be improved by involving dialogue, and negotiations supported by social audits by the parties involved.