Beyond Intellect and Reasoning

A scale for measuring the progression of artificial intelligence systems (AIS) to protect innocent parties in third-party contracts

Acres A Stowe

• Publisher: Page Publishing, Inc.
• Year: 2022
• Print ISBN: 9781662466465
• eBook ISBN: 9781662466472
• Topic: Law
• Subtopic: Law Theory & Practice
• Index: Law

The purpose of this book is to draw readers' attention to various legal intricacies associated with deploying self-directed artificial intelligence systems (AIS), particularly emphasizing the limits of the law, vis-à-vis liability problems that may emerge within third-party contracts. With the advent of today's ostensive "Amazon Halo or Alexa, " consumers are having to conclude contracts (e.g., sale of goods and distant financial services) in much more complex (cybernetic) environments. Generally, with one party acting in the capacity of a human being while the other (as an autonomous thing/device [AIS] with capabilities well beyond that of humans) representing the interests of others (not just other humans). Yet traditional jurisprudence is limited in scope for holding these systems legally accountable if they were to malfunction and cause harm. Interestingly, within the judicial system itself, the use of AIS is more prevalent now, including within the criminal justice system in some jurisdictions. In the United States, for instance, AIS algorithms are utilized to determine sentencing and bail processing. Still, jurists find themselves limited to traditional legal methodologies and tools when tackling novel situations brought about by these systems. For example, traditional strict liability concept, as applied in tort law, typically ties responsibility to the person(s) (e.g., AIS developers) influencing the decision-making process. In contract law, particularly where third parties are concerned, AIS are equated to tools for the purposes of traditional strict liability rules. Thus, binding anyone on whose behalf they would have acted (irrespective of whether such acts were intentional or foreseeable).

Chapter 5

AIS Crossing Borders

5.1 Virtual International eCommerce

The internet has vastly expanded the model of international e-commerce, allowing for instant readily accessible transactions among businesses and consumers.255 Yet equally, building an increasing appetite, so to speak, for effective dispute resolution mechanisms in business-to-business and business-to-consumer transactions.256 Indeed, the previous chapters would have explained why conventional jurisdictional rules will not suffice today—for AIS or general internet disputes. It is noteworthy, however, how the EU began to address some contractual dispute resolution issues regarding court jurisdiction, in Article 5 of Brussels Regulations.257 For example, seeking to confer jurisdiction on a court (i) in the State where the “place of performing the obligation” had been agreed by the parties258 (ii) where the agreed place of delivery (goods or services) had been determined.259 Notwithstanding, the complexities (technical or operational) associated with internet services are diverse and spread across many global landscapes, creating several possible delivery locations. Thus, making dubious transactions difficult to track. In Color Brack GmbH v. Lexx International Vetriebs GmbH 260 (see Fig 16) the Court of Justice of the European Union (CJEU) seemed to have determined that where several delivery locations exist, “the point of closest linking factor” will be the principal place of delivery, which is “determined on the basis of economic criteria.”261

Fig 16.0 Case C-386/05, [2007] I.L. Pr. 35 Color Brack GmbH v. Lexx International Vetriebs GmbH Article 5(1)(b)of Regulation No 44/2001 The reason for the rule of special jurisdiction in matters relating to a contract contained in Article 5(1) of Regulation No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, which reflects an objective of proximity, is the existence of a close link between the contract and the court called upon to hear and determine the case. Pursuant to the first indent of Article 5(1)(b) of that regulation, the place of performance of the obligation in question is the place in a Member State where, under the contract, the goods were delivered or should have been delivered The first indent of Article 5(1)(b)of Regulation No 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters must be interpreted as applying where there are several places of delivery within a single Member State. That provision seeks to unify the rules of conflict of jurisdiction and, accordingly, to designate the court having jurisdiction directly, without reference to the domestic rules of the Member States, while protecting the regulation’s objectives of predictability of the rules of jurisdiction and of proximity between the dispute and the court called upon to hear and determine the case. However, the applicability of that provision does not necessarily confer concurrent jurisdiction on a court for any place where goods were or should have been delivered. …the court having jurisdiction to hear all the claims based on the contract for the sale of goods is that for the principal place of delivery, which must be determined on the basis of economic criteria. In the absence of determining factors for establishing the principal place of delivery, the plaintiff may sue the defendant in the court for the place of delivery of the former’s choice.

Conversely, in the US, the Supreme Court seemingly obtained jurisdiction over parties, who although they had not been domiciled, they were associated with the forum by way of the internet. For instance, in CompuServe, Inc. v. Patterson,262 (see Fig 17) the court established that the respondent had meaningfully extended services to do business with the claimant with the full knowledge that the claimant was domiciled in Ohio.263 The court further emphasized that position in Zippo Manufacturing v. Zippo Dot Com.264 (see Fig 18) It was held that, wh...

Table of contents

• Introduction
• AIS and Contract Law
• AIS and Agency Law
• AIS and Legal Personality
• AIS Crossing Borders