Question 1

What should terms of service include?

Accepted Answer

Account rules, acceptable use, your rights and responsibilities, user rights and responsibilities, liability limits, termination, dispute resolution, changes process.

Question 2

How do liability limitations work?

Accepted Answer

Cap your liability—often to fees paid. Exclude consequential damages. Courts generally enforce reasonable limits. Critical protection for your business.

Question 3

What is acceptable use policy?

Accepted Answer

Rules for how users can and can't use your product. Ban spam, abuse, illegal activity, etc. Gives you power to terminate bad actors. Often separate document or section.

Question 4

Are terms of service actually enforceable?

Accepted Answer

Generally yes if users have chance to read and agree. Click-wrap stronger than browse-wrap. Courts do enforce reasonable terms. Unconscionable terms may fail.

Question 5

Should I require arbitration?

Accepted Answer

Pros: faster, cheaper dispute resolution. Cons: seen as anti-consumer, some states limit. Common in B2B. Consumer products more complex. Consider your audience.

Question 6

What about user-generated content?

Accepted Answer

Platforms need protections—users responsible for their content, license to use it, right to remove. DMCA safe harbor procedures. Complex area.

Question 7

Can I change terms anytime?

Accepted Answer

Include right to modify. Notify users of material changes. Give time to review. Continued use = acceptance. Major changes may need affirmative consent.

Question 8

What jurisdiction should I specify?

Accepted Answer

Usually your home state. Makes disputes more convenient for you. Some limits on enforceability. Consider where users are.

Question 9

Do I need separate terms for different products?

Accepted Answer

One terms document can cover multiple products. May need product-specific sections. API terms often separate. Keep as simple as possible.

Question 10

What about SaaS-specific terms?

Accepted Answer

Subscription terms, SLA if offered, data handling, uptime commitments, feature changes. May be in main terms or separate service agreement.

Question 11

How do I handle refunds in terms?

Accepted Answer

State your refund policy clearly. Consumer protection laws may require minimums. Be specific about conditions. Avoid disputes with clarity.

Question 12

What is indemnification?

Accepted Answer

User agrees to cover your costs if their use causes you liability. Standard in terms. Important if users can harm third parties through your platform.

Question 13

Do I need different terms for enterprise?

Accepted Answer

Often yes—enterprise wants negotiated terms. Master Service Agreement model. Different liability terms. Your standard terms are starting point.

Question 14

How do I display terms to users?

Accepted Answer

Link in footer, at signup, before purchase. Click to accept for important terms. Make accessible—don't hide them. Some jurisdictions have requirements.

Question 15

When should I have a lawyer review terms?

Accepted Answer

Complex products, user-generated content, regulated industries, enterprise focus. Simple SaaS can start with generators. Update terms as you learn.

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