Drafting Website Terms of Use – Part II

Previously on this blog, we discussed two important matters relating to the formation of the Terms of Use on your business’s website: avoiding using boilerplate language in favor of terms tailored to your specific business and having a privacy policy regarding the collection of customer information. The following are two more important things to consider during the process of drafting and posting your website’s Terms of Use.


Have Clear Sale Conditions

Many companies use their website to conduct online sales. No matter what your product is or the size of your operation, failing to have clear conditions of sales on your Terms of Use can result in disputes and even legal claims. The terms of a sale should be in clear language that the customer can read and agree to prior to making a purchase. Some terms to address in this part of your Terms of Use include the following:

  • Warranties and Disclaimers
  • Licensing rights
  • Transfer of ownership
  • Policies regarding returns, exchanges, and refunds
  • Dispute resolution procedures and choice of law and jurisdiction
  • Payment requirements
  • Credit card usage
  • Shipping costs and terms

Since the customer is already reading this portion of your Terms of Use regarding their purchase, you may also want to include limitations on your company’s liability should any issues arise for the customer.

Consumer protection laws in California regulate what you can and cannot include when it comes to liability waivers and warranties. To ensure that your Terms of Use regarding sales are enforceable should a dispute arise, you should have it drafted or at least reviewed by an experienced business lawyer familiar with e-commerce and California law.

Address Intellectual Property Issues

There is likely a significant amount of intellectual property on your website, including your logo, company name, taglines or slogans, and the content and design of your website. You do not want people visiting your site to misappropriate any of this, so you should take the time to put safeguards in place by obtaining the trademarks, copyright and other IP protections that are relevant. Your Terms of Use should state how you authorize your customers to use your intellectual property, and what uses are prohibited.

An Experienced San Jose Corporate Attorney Can Assist You

If your website’s Terms of Use are not carefully drafted, it can easily lead to a dispute that may escalate quickly. At Structure Law Group, LLP in San Jose, we understand how to best draft terms for your website that protects your interests and works to clear up any misunderstandings while complying with California law. If you would like more information, please call our office at 408-441-7500 or fill out our online contact form today.