A technology company, incorporated and headquartered in State A, systematically and continuously sells its products to residents across the United States through its interactive website. A resident of State B purchases one of the company's products through the website. The product subsequently malfunctions in State B, causing the resident significant property damage. The resident files a lawsuit in a state court in State B against the company for damages arising from the faulty product. The company has no physical offices or employees in State B. May the court in State B constitutionally exercise personal jurisdiction over the company?
No, because the company lacks a physical presence, such as an office or employees, in State B.
Yes, but only if the resident's claim is for more than $75,000.
Yes, because the company purposefully availed itself of the privilege of conducting business in State B by regularly selling products to its residents.
No, because the company is not incorporated and does not have its principal place of business in State B.
The correct answer is that the court in State B may exercise specific personal jurisdiction over the company. By systematically and continuously selling products to residents of State B through its interactive website, the company has purposefully availed itself of the privilege of conducting business in State B. This establishes the necessary minimum contacts with the forum state. The lawsuit arises directly from these contacts, and exercising jurisdiction would not offend traditional notions of fair play and substantial justice. The physical presence of the defendant is not required. The amount-in-controversy is relevant for federal diversity jurisdiction, not state court personal jurisdiction. The bases for general personal jurisdiction (incorporation or principal place of business) are not required when specific personal jurisdiction exists.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What are 'minimum contacts' in the context of personal jurisdiction?
Open an interactive chat with Bash
What does 'personal jurisdiction' mean?
Open an interactive chat with Bash
How does the Due Process Clause relate to personal jurisdiction?