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With use of the Internet, a new form of contract has appeared: the electronic contract, which is concluded online. Most of these involve a relationship of two parties: a consumer who is in a relatively vulnerable position, and a business entity. There are numerous examples of such transactions: youngsters downloading music from a website and paying for it-as they would in a music store. Many physical goods can also be purchased online-e.g. even though they live in Europe, the authors of this article regularly purchase books from the US. There are numerous ways such transactions can take place: one of the most obvious ways is buying goods on Amazon or eBay, on the website of a company, or purchasing goods using e-mail communication. The article attempts to summarize the choice of law rules affecting electronic contracts in the US and in Europe-i.e. to give an overview of which country's or state's law would apply to a contract concluded online, what the limits are on such a transaction and which state's laws can protect us in case of a breach. [ABSTRACT FROM AUTHOR]