Threats of operating an Online Shop selling to the US

[Peter]

Hello everyone,

I hope to get some useful feedback from this forum. I’m operating an online shop selling extreme sports products, such as motorized skateboards.

Our products are shipped worldwide. Products are sent directly from the manufacturer in China to the end consumer. I’m very worried since the majority of our customers are from the US and I want to make sure to be sufficiently covered in case of an accident or a similar incident happening with our products offered. Are the terms and conditions sufficient to protect me and my company from potential law suits?

Key phrases of the terms and conditions include:

- EXCEPT AS EXPRESSLY STATED HEREIN, COMPANY XYZ EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND WITH RESPECT TO PRODUCTS SOLD ON THIS SITE, INCLUDING BUT NOT LIMITED TO, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

- YOU AGREE THAT THE SOLE AND EXCLUSIVE MAXIMUM LIABILITY TO COMPANY XYZ ARISING FROM ANY PRODUCT SOLD ON THE DEEPKIND.COM SITE SHALL BE THE PRICE OF THE PRODUCT ORDERED.

- ITS DIRECTORS, OFFICERS, EMPLOYEES AND REPRESENTATIVES WILL NOT BE LIABLE FOR ANY DAMAGES OF ANY KIND ARISING FROM THE USE OF THIS SITE, INCLUDING BUT NOT LIMITED TO DIRECT, INDIRECT, INCIDENTAL PUNITIVE AND CONSEQUENTIAL DAMAGES RELATED TO PRODUCTS SOLD.

I’d be very thankful to get some further input and some ideas on what to pay attention to and how to protect the company form potential legal consequences to a reasonable level.

Many thanks in advance.

Regards,

Peter

That helps but does not give you 100% protection. You could still be sued.

Either have insurance or keep the operation in a company that does not have too many assets,

[Peter]

Does it make a difference to have the headquarter in Australia, does than Australian law govern potential law suits? Furthermore, it be great if someone could tell me whether the owner of a LTD is only liable for the share capital when it comes to disputes with customers (not other businesses)?

Thanks for your help.

Regards,

Peter