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 |