Yennik, Inc.®
R. Kinney Williams
Yennik, Inc.

Bank Auditing Services

Texas - H.B. No. 2653 - effective September 1, 1999

AN ACT

relating to the law that applies to a contract made over the Internet.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1.  Subchapter D, Chapter 35, Business & Commerce Code, is amended by adding Section 35.531 to read as follows:

Sec. 35.531.  LAW APPLICABLE TO CONTRACT MADE OVER INTERNET. (a)  In this section, "Internet" means the largest nonproprietary nonprofit cooperative public computer network, popularly known as the Internet.

(b)  Subject to Subsection (e), this section applies only to a contract made solely over the Internet between a person located in this state and a person located outside this state who does not maintain an office or agent in this state for doing business in this state.

(c)  A contract to which this section applies is governed by the law of this state unless each party to the contract who is located in this state:

(1)  is given notice that the law of the state in which another party to the contract is located applies to the contract; and

(2)  agrees to the application of that state's law.

(d)  A person asserting that the law of another state applies to a contract has the burden of proving that notice was given and agreement was obtained as provided by Subsection (c).

(e)  Sections 1.105 and 35.53 do not apply to a contract to which this section applies. This section does not apply to a contract to which Section 35.51 applies.

SECTION 2.  Section 35.531, Business & Commerce Code, as added by this Act, applies only to a contract made on or after the effective date of this Act.

SECTION 3.  This Act takes effect September 1, 1999.

SECTION 4.  The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.

_______________________________ _______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 2653 was passed by the House on April 16, 1999, by a non-record vote.

_______________________________

Chief Clerk of the House

I certify that H.B. No. 2653 was passed by the Senate on May 24, 1999, by a viva-voce vote.

_______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor

Back Button

Go to the Bank Web Site Audit home page.

Yennik, Inc. - R. Kinney Williams®

All rights reserved; Our logo R. Kinney Williams & Associates is registered with the United States Patent and Trademark Office.
Terms and Conditions, Privacy Statement, © Copyright Yennik, Incorporated

We are Americans and will never be defeated.