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To reduce the risk of transacting business online, virtually all website owners place language on their sites that includes, among other things, forum selection and choice of law clauses, limitations on damages and alternative dispute resolution requirements such as mediation or arbitration. This protective language often is presented in the context of “Terms of Use,” an “End User License Agreement,” or “Terms of Service.” Regardless of what the agreement is called, to effectively reduce their risk, website owners need to make certain that a valid agreement exists with the website users.

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