The quick and easy route can be very expensive.
1. Copying and pasting from another website, or using a template.
Simply put, these documents are not one size fits all.
3. Setting choice of law and choice of venue.
Here’s another common problem: a business is sued in a court on the other side of the country. The business has never operated there, never sold a product there, and no employee has ever been within hundreds of miles of the court. The problem? The terms of service, copied from elsewhere, states any disputes will be brought in that court, following that state’s law. If you copied Google’s terms of service, you are now stuck paying Silicon Valley attorneys to apply California law in a court in Santa Clara County, California. Plan on plenty of plane trips for hearings and depositions.
If a business is stuck suing a customer for failing to make payments, that suit will have to come in the court specified in the terms of service. If you sue a local customer in a local court, their attorney is likely to have the case thrown out. They can use your own terms of service against you, and toss the case because it’s filed in the wrong court.
This can become an expensive and logistical nightmare frequently encountered because no one ever reviewed what they put on their website.
4. Failing to make the terms of service enforceable.