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Daniel Shulman is a Shareholder at Vedder Price and a member of the firm’s Intellectual Property group in the Chicago office.

Does your company have website terms of use, or e-commerce terms?

If so, it’s important to know whether those terms are enforceable.

In Domer v. Menard, Inc., Domer wanted to recover a $1.40 pickup service fee for a can of paint she bought on the Menards’ website. In her suit, Domer alleged that Menards had not disclosed the pickup service fee and used the fee to manipulate its prices, and had it been disclosed, she would not have purchased the product. Menards argued that the case should be dismissed because Domer entered into an enforceable arbitration agreement when she accepted the Menards Terms of Order at checkout. For Menards, the question was a critical one—if its Terms of Order applied, then the class action would leave the court and head to arbitration. Continue Reading E-Tailer Beware: The Seventh Circuit Clarifies the Framework for Enforceability of Digital E-Commerce Agreements

President Biden issued an Executive Order on October 30, 2023 designed to place the United States at the forefront of law and regulation of Artificial Intelligence (AI). The Executive Order on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” creates binding disclosure requirements for companies that are either developing certain large language AI models or acquiring or possess sufficient computing power to run such AI implementations (as described below). The Order also establishes, and directs several federal agencies to establish, industry benchmarks for ensuring robust, reliable, repeatable and standardized testing and evaluations of AI systems, create new standards for AI safety and security.

The Order contains a lot of detailed provisions and initiatives involving nearly every government agency and calling for wide-ranging studies and recommendations on nearly every facet of AI, significant provisions of which are described below.

Of particular note, however, the President invoked the Defense Production Act to impose certain requirements that will go into effect 90 days after the issuance of the Order. There are two significant requirements going into effect affecting companies that employ AI models and companies that employ or provide large computing capacity that can be used for AI.Continue Reading President Biden Issues Far-Reaching Executive Order on Artificial Intelligence