Wex

Personal Information | Wex | US Law

right of privacy: access to personal information

The right of privacy has evolved to protect the ability of individuals to determine what sort of information about themselves is collected, and how that information is used. Most commercial websites utilize “cookies,” as well as forms, to collect information from visitors such as name, address, email, demographic info, social security number, IP address, and financial information. In many cases, this information is then provided to third parties for marketing purposes. Other entities, such as the federal government and financial institutions, also collect personal information. The threats of fraud and identity theft created by this flow of personal information have been an impetus for right of privacy legislation requiring disclosure of information collection practices, opt-out opportunities, as well as internal protections of collected information. However, such requirements have yet to reach all segments of the marketplace.

15 U.S.C. § 45 charges the Federal

Read More

Personal Jurisdiction | Wex | US Law

Overview

Personal jurisdiction refers to the power that a court has to make a decision regarding the party being sued in a case. Before a court can exercise power over a party, the U.S. Constitution requires that the party has certain minimum contacts with the forum in which the court sits.  International Shoe v Washington, 326 US 310 (1945). So if the plaintiff sues a defendant, that defendant can object to the suit by arguing that the court does not have personal jurisdiction over the defendant.

Waiving Personal Jurisdiction

Personal jurisdiction can generally be waived (contrast this with Subject Matter Jurisdiction, which cannot be waived), so if the party being sued appears in a court without objecting to the court’s lack of personal jurisdiction over it, then the court will assume that the defendant is waiving any challenge to personal jurisdiction.  See Federal Rule of Civil Procedure 12(b)(2). 

Obtaining Personal

Read More

Insurance | Wex | US Law

Definition

A contract in which one party agrees to indemnify another against a predefined category of risks in exchange for a premium.  Depending on the contract, the insurer may promise to financially protect the insured from the loss, damage, or liability stemming from some event.  An insurance contract will almost always limit the amount of monetary protection possible.

Overview

In the absence of insurance, three possible individuals bear the burden of an economic loss; the individual suffering the loss; the individual causing the loss via negligence or unlawful conduct; or lastly, a particular party who has been allocated the burden by the legislature, such as employers under Workmen’s Compensation statutes.

While types of insurance vary widely, their primary goal is to allocate the risks of a loss from the individual to a great number of people. Each individual pays a “premium” into a pool, from which losses are paid out.

Read More

Money Laundering | Wex | US Law

money laundering: an overview

Money laundering refers to a financial transaction scheme that aims to conceal the identity, source, and destination of illicitly-obtained money. The money laundering process can be broken down into three stages. First, the illegal activity that garners the money places it in the launderer’s hands. Second, the launderer passes the money through a complex scheme of transactions to obscure who initially received the money from the criminal enterprise. Third, the scheme returns the money to the launderer in an obscure and indirect way.

Tax evasion and false accounting practices constitute common types of money laundering. Often, criminals achieve these objectives through the use of shell companies, holding companies, and offshore accounts. A shell company is an incorporated company that possesses no significant assets and does not perform any significant operations. To launder money, the shell company purports to perform some service that would reasonably require its

Read More