Trading with Minors

Discussion in 'Legal Issues' started by DarkCircuit, Aug 13, 2006.

  1. #1

    It is illegal. Don't be so mad that I'm right. Like alot of other trusted DP members said, It's illegal to buy from a minor. I dont care if he sells sites or anything, I'm trying to help out other DP members. Almost 4 people said it was illegal in this thread. There's your proof.
     
    DarkCircuit, Aug 13, 2006 IP
  2. sarahk

    sarahk iTamer Staff

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    #2
    I've moved this out of the original thread. There are a number of legal constructs here.

    The location of the vendor
    The location of the buyer
    The location of the sales vehicle (ie DigitalPoint)

    In the thread in question http://forums.digitalpoint.com/showthread.php?t=123445 it appears that the site is USA owned and hosted.

    The sales vehicle is US owned and hosted

    So US law regarding contracts with minors will have some teeth.

    But what happens when the buyer is not in the US. Whose laws apply?
     
    sarahk, Aug 13, 2006 IP
  3. DarkCircuit

    DarkCircuit Banned

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    #3
    Good question. Well, I guess it'd depend on the location of the the buyer & the seller. If they were to be both in the US, It'd definitely be illegal. Though I'm not sure if it would be illegal when the buyer or seller was out of the U.S.

    You are taking a chance when buying/selling from/to a minor. Say if you bought something from a minor, and then the minor threatened you to tell legal authorities unless you did something for him/her.
     
    DarkCircuit, Aug 13, 2006 IP
  4. sarahk

    sarahk iTamer Staff

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    #4
    If I go to a garage sale and buy a bookshelf for $50 from a kid outside his home and take it home is that a binding contract?

    If I go to DP and buy a site for $50 from a kid trading online is that a binding contract?

    You seem to know a bit about US law - maybe you can help make the distinction for those of us less familiar.

    After all, online is tricker, as you don't get to see the other party and they can fake their identity.
     
    sarahk, Aug 13, 2006 IP
  5. DarkCircuit

    DarkCircuit Banned

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    #5
    I guess it'd depend where the kid was located. US = No, not a binding contract. Non-US = I'm not quite sure, I dont think so though.
     
    DarkCircuit, Aug 13, 2006 IP
  6. sarahk

    sarahk iTamer Staff

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    #6
    so the kid could come and take back the bookshelf?
    What's required to make it binding? The word of a parent? A written contract?
     
    sarahk, Aug 13, 2006 IP
  7. DarkCircuit

    DarkCircuit Banned

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    #7
    A written contract from the parent I guess, I <3 all the a questions. </sarcasm>
     
    DarkCircuit, Aug 13, 2006 IP
  8. sarahk

    sarahk iTamer Staff

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    #8
    oh I figured from your being so vocal on that thread that you'd be able to guide people into how to trade safely with minors. Can't be a blanket no-go-zone, there must be ways you can do it.
     
    sarahk, Aug 13, 2006 IP
  9. fryman

    fryman Kiss my rep

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    #9
    One case posted at Dnforum:

    Avoid doing business with minors.
     
    fryman, Aug 13, 2006 IP
  10. Coolalex

    Coolalex Banned

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    #10
    on dnforums i have an itrader of all perfect about 15 and here 6 so i htink you could trust me. All up to you though ;)
     
    Coolalex, Aug 14, 2006 IP
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  11. sarahk

    sarahk iTamer Staff

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    #11
    Chill Coolalex, I was hoping DarkCircuit would give us some more info since he seemed so knowledgeable on the legalities. Seems he doesn't though.
     
    sarahk, Aug 14, 2006 IP
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  12. wrmineo

    wrmineo Peon

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    #12
    I could start a thread about seeing Elvis in Las Vegas and swear he's alive. If 4 people claim the same, does that make it true?

    The truth of the matter is that contracts with minors are not wholly illegal. In some cases they may not be enforceable or can be voided, but not necessarily illegal.

    Further, each state (in the U.S.) handles the issue differently. Sui iuris (legal competence) is but one factor in determining whether or not a contract can be enforced.

    Is it a good idea to enter into contracts with minors? Not in my opinion; or at least certainly not without a signed parental consent.

    However, making a bland and blanket statement that any contract with a minor is illegal is irresponsible.
     
    wrmineo, Aug 14, 2006 IP
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  13. Nonny

    Nonny Notable Member

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    #13
    DarkCircuit, do you have something (other than other comments) to show that it's illegal? As far as I know, it's not illegal at all. The important point is that in the United States, a contract with an under-18 is not legally binding. That means that any business deal could be reversed because of the person's age. Even if the minor gladly makes a deal, his legal guardian could have it reversed.

    See this article in Business Week about the risks involved
    http://www.businessweek.com/2000/00_22/b3683155.htm
    It's easy - they need a legal guardian to sign the contract.
     
    Nonny, Aug 14, 2006 IP
  14. r3dt@rget

    r3dt@rget Notable Member

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    #14
    Whether or not its legal I dont really care. I think at 16 I should be able to sell a little website. If you dont want to trust me thats your choice. My question is that is it illegal for a minor to sell to a minor or someone 18+ to sell something like a website to a minor?
     
    r3dt@rget, Aug 14, 2006 IP
  15. -Abhishek-

    -Abhishek- Regaining my Momentum!

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    #15
    Hmmm... Interesting, I have sold about 30 sites by now and I don't think I would ever be needing them again, even if they make a gazillion dollars a day.

    The sites that I sell, are transferred from one registrar to another and when I click the consent email only then is the domain transferred. The content however has to be manually provided in the form of a zip file or a gzipped sql database (if any)

    Anyways, what entity does a website come under? I have mailed a couple of lawyers I know regarding this and it's forthgoing in India. Will post as I get to know about it.

    Does this apply for services as well ? Since I have provided -and am still providing- SEO and WebDesign/Development services to tonnes of clients.

    For the record, I'll be 17 on the 31st of this month ;) ....

    Abhishek
     
    -Abhishek-, Aug 14, 2006 IP
  16. sarahk

    sarahk iTamer Staff

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    #16
    That attitude is precisely why you have to be careful with minors.

    That "I don't care if it's legal I'll do what I want"

    Actually, you need to care. You're entering into a legal transaction and you need to understand the ramifications of doing so - both legal and tax.

    It's not about trust, it's about doing things right. For some it takes a few more years to work that out.
     
    sarahk, Aug 14, 2006 IP
  17. oninuva

    oninuva Peon

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    #17
    Haha just like drugs...

    yeah i wouldnt buy from minors
    s :D
     
    oninuva, Aug 14, 2006 IP
  18. Coolalex

    Coolalex Banned

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    #18
    Thats your choice not to buy from minors but your missing out on the best websites ;)
     
    Coolalex, Aug 14, 2006 IP
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  19. oninuva

    oninuva Peon

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    #19
    Er.. the websites by minors arnt that good... Well thats cause their mostly templates!
     
    oninuva, Aug 14, 2006 IP
  20. -Abhishek-

    -Abhishek- Regaining my Momentum!

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    #20
    @Oblivion,
    Watch your words, I know some of the best teenaged designers who are under-18.... and I even know adults who use templates ....

    I myselves am 16 and have done design works for many clients .. who have been satisified with my work ... so you can't talk of under-18 sites being template based solely ....

    Just my 0.02$

    Abhishek
     
    -Abhishek-, Aug 14, 2006 IP