A software company based in State A operates an online platform that allows customers from all 50 states to subscribe to its services. The company advertises on social media and regularly generates business from residents of other states. A customer in State B sues the company in State B's state court for breach of contract involving the subscription agreement. The company challenges the case, asserting that State B's court lacks personal jurisdiction over it. Under these facts, does the court in State B have personal jurisdiction over the company?
Yes, because the company's online sales and advertising constitute purposeful availment of State B's market and legal protections.
No, because the court examines the extent of the company’s business in the state, and minor sales are insufficient to establish jurisdiction.
No, because the company does not have a physical presence in State B through offices or employees.
No, because selling products to customers in a state alone does not establish jurisdiction.
Personal jurisdiction is established when the defendant has sufficient minimum contacts with the forum state, and when exercising jurisdiction aligns with traditional notions of fair play and substantial justice. Minimum contacts exist when a defendant purposefully directs its activities toward the state and the claim arises from those activities. In this case, the company advertised its services in a way that reached State B residents and contracted directly with the plaintiff in State B, constituting purposeful availment. Since the claim is directly tied to the company’s contacts with State B, we can conclude that specific jurisdiction is proper.
The incorrect answers falter in their application of jurisdiction principles. Answer B overemphasizes physical presence, which is not a requirement for personal jurisdiction. Answer C incorrectly shifts the focus to the volume of business, ignoring that even minor business activity may suffice if it involves purposeful availment. Answer D neglects to account for the nature and connection of the defendant’s actions with the state, which play a role in determining jurisdiction under the minimum contacts analysis.
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