Legal Question in Technology Law in Kansas
Cyber Fraud
Can a person (seller) be sued for commiting fraud (online auction) and also collect a fraud settlement from the venue that the seller used under their fraud protection program, or do you only choose one or the other for a choice of settling the matter.
1 Answer from Attorneys
Re: Cyber Fraud
Technically, pursuing the anti-fraud remedies under an auction site's rules would not constitute a prior adjudication that would preclude subsequent litigation. And, if the auction site or some third-party insurer pays a claim to you, then the effect would be to reduce your damages in a subsequent suit against the seller. However, if you accept a settlement from the seller under the auction site's rules, various defenses (e.g., accord and satisfaction, estoppel) could be invoked by the seller.
Best wishes,
LDWG
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