Innovatech, a technology company headquartered in California, enters into a contract with BrightMarketing, a marketing firm based in Texas, to develop a customized analytics platform. The contract specifies that any disputes will be resolved in California courts. BrightMarketing begins using the analytics platform in Texas, but Innovatech alleges that BrightMarketing failed to adhere to the agreed-upon performance standards. Innovatech files a lawsuit in California state court. BrightMarketing moves to dismiss the case for lack of personal jurisdiction.
Does the California state court have personal jurisdiction over BrightMarketing?
No, because BrightMarketing operates in Texas and has some interaction with California.
No, because BrightMarketing has limited contacts with California outside the contract.
No, because the disagreement relates to performance standards rather than jurisdiction.
Yes, because BrightMarketing agreed upon California jurisdiction through the contract's forum selection clause.
The California court has personal jurisdiction over BrightMarketing because the contract includes a forum selection clause that specifies California as the jurisdiction for disputes. This clause provides sufficient basis for the court to assert jurisdiction. The other options fail to recognize the enforceability of the forum selection clause or incorrectly focus on unrelated aspects of the case.
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Multistate Bar Examination
Civil Procedure
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