Exchange business and legal issues.

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Business to business digital trading exchanges have invaded almost every industry. Over the past 18 months, approximately 500 - 600 exchanges have emerged. Exchanges lower procurement costs by enabling just-in-time ordering, on-line tracking and access to multiple sources of supply through reverse auctions. Companies establishing exchanges should consider the following:

All of the issues relating to ASPs apply to exchanges.

The FTC is watching. The FTC is concerned about monopolies, collusion, price fixing and other anti-competitive behavior. All documents should be reviewed by anti-trust counsel.

Understand the increased liability. Exchanges seek to outsource substantially all IT needs of a company - from procurement to human resources to accounting. If an exchange breaks down, its customers will be crippled. The exchange and its customers need to minimize risk by agreeing on best standards (standard of care), warranties, limits on remedies, ownership of copyrights, patents and other intellectual property. New e-commerce insurance policies can help shift the risk.

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what's FTC?

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As the Internet becomes an increasingly important tool for businesses, electronic security (e-security) has emerged as a major issue.Many businesses want to expand their use of the Internet but are not sure how to do so in a secure way. The e-businessguide will help you decide which strategies and processes are appropriate for your business e-security needs.If your business is connected to the Internet, it is essential to ensure that your business data, including customer information, is safe and that your transactions are carried out securely.