Personal Jurisdiction and Chargebacks

[turboti]

What is the name of your state? California

This is another eBay question but it can pertain to all online transactions.

Buyer is located in Alabama

Item cost $450 +$100 shipping

Buyer won the auction and paid via paypal with a credit card. We shipped correct item in new condition as stated in auction. Customer recieved it fine, left positive feedback, we considered the sale closed. A week later, customer calls and complains that he made a mistake and purchased the wrong item which didnt fit his vehicle. He admitted over the phone it was his error, but still wanted us to be liable. After consistant chargeback threats we decided to offer him a refund of the *item* price if he ships it back in good condition. He refused our offer and wanted us to refund the shipping he paid as well. We disagreed on that and he filed his chargeback.

If at the worst case the credit card company sides with the customer(which we expect will happen since they always do) and he does not return the item, we want to sue him in small claims. We will be losing both the item and the wheels (and a $10 chargeback fee) which amounts to about $1100.

The question is, do we have personal jurisdiction to file the suit here in California? or do we have to do it in Alabama?

I have searched this forum and personal jurisdiction comes up alot. Can someone discuss how do we establish jurisdiction?

Would it be legally binding if we put a clause in our auction that states by bidding the winner agrees that we have jurisdiction and that any legal matters would have to be filed in our state?

Thanks for any advice anyone can give on the matter. It is much appreciated.

 

[divgradcurl]

Can someone discuss how do we establish jurisdiction?

Until the laws change (and they are, very slowly), personal jurisdiction is determined by the "minimum contacts" test in International Shoe: http://caselaw.lp.findlaw.com/scripts/getcase.pl?navby=search&court=US&case=/us/326/310.html

EDIT: Didn't mean to be that brief. Basically, what International Shoe and its progeny tell us is that for a state to be able to assert personal jurisdiction over someone, that person (and by person, also corporation) must either a) be actually in the state, or have "minimum contacts" that would make it so that the person could reasonably expect to be "haled into court" in the particular state. Minimum contacts is a balancing test, usually balancing "irregular and casual" contact versus "systematic and continuous" contact (the former being no jurisdiction, the latter conferring jurisdiction). Another consideration is if the person "purposefully availed" themselves of the protections and laws of a particular state, such as a California resident incorporating in Nevada or Delaware.

At least, that's what I remember from civil procedure...

A single purchase, however, it not going to be found to be either "purposeful availment" or "systematic and continuous" contact sufficient to give your state the jurisdiction to haul the buyer into California court.

 

[acmb05]

actually you would be surprised

How many time the CC companies side with the merchant.

When he filed the charge back and you respond to it and explain your side I am almost certain they will not allow the chargeback.

Unless he lied to his CCcompany him telling them he is fileing because he bought the wrong item proably wont fly.

Post on your site that any returns other than damage returns are subject to a 25% restocking fee. There will be no refunds of shipping fees.

 

[turboti]

Since it is an eBay auction we have all the terms listed. Including stating that all sales are final. Like most ebay buyers, this guy most likely doesnt care and probably didnt take the time to read any of the terms.

If the CC company actually sides with us it would be the first I have ever heard of. We would be surprised if this occurs.

Thanks all for the comments, if we do lose this, we will file in small claims and put the burden on the buyer. Since it's basically stealing and the amount is fairly high we will go after this person. We'll try to update the thread to let you guys know what happened.

How many time the CC companies side with the merchant.

When he filed the charge back and you respond to it and explain your side I am almost certain they will not allow the chargeback.

Unless he lied to his CCcompany him telling them he is fileing because he bought the wrong item proably wont fly.

Post on your site that any returns other than damage returns are subject to a 25% restocking fee. There will be no refunds of shipping fees.

 

[acmb05]

I have had

Since it is an eBay auction we have all the terms listed. Including stating that all sales are final. Like most ebay buyers, this guy most likely doesnt care and probably didnt take the time to read any of the terms.

If the CC company actually sides with us it would be the first I have ever heard of. We would be surprised if this occurs.

Thanks all for the comments, if we do lose this, we will file in small claims and put the burden on the buyer. Since it's basically stealing and the amount is fairly high we will go after this person. We'll try to update the thread to let you guys know what happened.

I have personally had 5 people try a chargeback on me for items that they received but then said they did not or ordered the wrong item and would not accept a replacement. Keep in mind I do not refund shipping, I will exchange an item if they bought the wrong one but they must cover shipping.

I have won all but one of those chargeback requests. The one I lost I didnt really lose cause I did not fight it, it was to small to bother with.

It is not your fault they did not pay attention and ordered the wrong item. If he does the charge back, then answer it and provide any emails or other proof you have that he made the mistake.

 

[racer72]

I have had a couple of chargebacks against stuff I sold on Ebay and I prevailed both times. I have a very strict return policy and it helped in both cases.