Abstract
Social Media is one of the most popular ways of commutating around the world today; it has connected people like nothing we have ever seen. Social media is a relatively inexpensive platform for business and organizations. Because so many people use social media many people will use social media to promote themselves such as singers, actors, and all types of businesses. Technology is everything social media marketing has become a major instrument in organizations’ marketing strategies. The development of many social networks such as Facebook, Twitter, and Insta-gram there are so many avenues available for companies to advertise their products and services.
Discuss the four (4) components of a legally astute social media-marketing manager who utilizes social media outlets for consumer transactions and how each component can mitigate the risk involved in doing business in cyberspace.
Because of social media, there are many ways a consumer can utilize data and shop. For example, anyone can negotiate contracts to build trust and relational governance techniques. The company must protect and constantly enhance all of their technology, because of online contracts. Companies offer different options for the consumers’ transactions such as a secure web page. Also they leave traditional methods of payment as well; check money, order, etc. this creates job opportunities.
Some characteristics of a media-marketing manager would include an acceptance of how important the law is to the success of the organization. Being proactive and having a positive attitude towards change, legal issues and regulations will always help managers be successful. A social media-marketing manager must be educated in these qualities because internet marketing is a fairly new concept, when comparing it to traditional marketing such as: commercial, print and radio.
It is important for a social media-marketing manager to understand the current laws that affect his company in regards to customer privacy, data mining, and taxation. As a manager you must take responsibility in understanding and following the various regulations involving his specific industry. Their responsibility will be about constantly being proactive. Also finding new approaches in conducting research, working with the business's legal department and practicing this behavior in front of both clients and employees. Social media is a constant flow of information. It gives immediate feedback and engages customers and potential customers, a manager must understand how to react and use this information in a successful manner while complying with the law and company’s ethics policy. A manager must also understand how customer feedback will improve or harm business. They must do this in such a way that the customers voice can be heard and also managed and shared without comprising privacy. Managers must know how to obtain information and also be creative. This must be done in a way that can be used for both improvement and marketing.
Media managers must keep track of what customers are saying about their product or services. The marketing department/managers are also looking for ways to better engage their customers (Aquino, 2012). Because of social media becoming a very popular everyday, it is important for a social media-marketing manager to maintain aware and up to date on legal decisions, legislation and rules created because of the social media revolution.
List and analyze methods of alternative dispute resolution and determine which would be most effective in resolving genuine disputes that arise with consumers who may make purchases from businesses that provide links via social media.
Analyzing the different methods of alternative dispute resolution and considering them for disputes from consumers purchasing via a social media site it is important to understand their differences and legal ramifications post resolution. Negotiation, meditation, and arbitration are the most common forms of ADR that will be discussed. Combinations of these previously mentioned are mini-trial and summary jury trial. These are also available methods of alternative dispute resolution.
Negation and mediation are often informal techniques used in the early stages of consumer disputes and are ideal in most escalated occurrences as well. Typically the disputants represent themselves or may have some legal council to represent them and a mutually agreed decision is reached after both parties present their case. In any case the ability and fairness are the decisive elements in an arbitration, the selection process is one of the most important aspects of the arbitration (Arbitration, 2013). Arbitration decisions are legally binding and are upheld in court unless obvious flaws in the process are present. Because of the nature of arbitration, mediation is less costly and more efficient, but both are more conservative when compared to a court trial involving lawyers and time-consuming court trials.
Most consumer disputes are best-resolved using ADR techniques, most preferably mediation because of these reasons and perhaps more importantly because most mediation procedures save both parties from poor publicity and public scrutiny. These reasons are why many companies, doing business with consumers via social media, include arbitration clauses, within their terms and conditions, when entering into new contracts with clients and consumers. Since consumer transactions on social media can occur. When a business moves into another area they must abide by laws from that area as well as the federal law of the land.
There are many Federal regulations in place to provide consumers protection when they participate in transaction via social media sites. These regulations range in nature from protection for electronic fund transfers, taxation on goods and restrictions on state laws restricting interstate commerce. These laws are growing in importance as more and more consumers choose to transact business via social media sites and the internet. A consumer should be aware of their rights and responsibilities when engaging in e-commerce and a business is also responsible to adhere and respond when these rights are infringed upon. The E-Sign Act provides consumer and business protection by allowing contracts to be signed without paperwork and the Federal Trade Commission has several protections in place for purchases made online for more than $25. There are many different regulations put forth by the Federal government, but there are many ways a consumer can control and practice safe methods for transactions. This includes using reliable, reputable companies to purchase from, using secured browsers, understanding terms and conditions prior to purchase and finally keeping records of all transactions.
Examine the three (3) branches of government and discuss which can effectuate the most significant impact on regulating consumer transactions via social media outlets.
The three branches that make up the Federal government are executive, legislative and judicial. The power of the government is divided among these three branches in an effort to create shared allocation of responsibilities in regarding to protecting and addressing the rights of Americans. The executive branch is made of the President and cabinet departments. The Judicial branch is made of the courts and Congress represents the legislative branch (Bagley, 2013). While each division shares in the impact of laws regulating consumer transactions, the legislative branch is more significant. Because of their power to “regulate commerce with foreign nations and among the states” and create laws involving such commerce, Congress has the most impact in regards to consumer transactions via social media outlets. Congress is elected to represent constituents. Congress represents us all. They draft and pass legislation that directly impacts and regulates commerce on all levels including internet transactions and the practices that are included in those transactions including advertising, shipping, billing, taxation, consumer rights to privacy, and contracts.
Explain the agency relationship that exists on social media sites between the social media provider and businesses that utilize the site for advertising.
When considering the agency relationship that exists between a social media provider and a business utilizing the site for advertising, one would put this in a category of principle-independent contractor. The employer-employee relationship is not applicable because the social media provider is not under the control of the business advertising. Depending on the situation there may not be an agency relationship at all, unless the social media site is able to enter into contracts on the business’s behalf. In order to make the best determination regarding the relationship, there are several factors that can be considered it does not matter if a person is an independent contractor or an employee it depends on what he/she does for the company. In business it does not matter how the relationship is defined by the company (Bagley, 2013).

References
Aquino, J. (2012). Find the right social media monitoring tool. CRM Magazine. Retrieved January 28, 2013, from Academic Search Complete, EBSCO database.
Arbitration. Britannica Online Encyclopedia. Retrieved January 28, 2013, from EBSCO database.
Bagley, C. E., (2013). Managers and the legal environment (7th ed.). Mason, OH: South-Western Cengage Learning.