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3-2 Milestone One: Case Study OneCourtney FoxworthBUS 206 – Business LawSouthern New Hampshire UniversityNovember 15, 20203-2 Milestone One: Case Study OneThe appropriate court for this lawsuit depends upon several factors. Three important considerations include personal jurisdiction, minimum contacts, and subject matter jurisdiction. Personal jurisdiction, or in personam jurisdiction, “is a court’s power to render a decision affecting the rights of the specific persons before the court.” (Kubasek et al, 2017) For state courtsystems, personal jurisdiction is generally within the state’s borders. For the federal court system,the jurisdiction can extend beyond borders within the United States. In the case of Donald Margolin and Donald Margolin Empire Inc. versus Novelty Now, Funny Face, Chris, Matt, and Ian, the suit was filed in New York. Chris, Matt, and Ian live in the state of California, and Novelty Now is located in the state of Florida. Therefore, based on those facts, the state of New York does not have jurisdiction. In contrast, Funny Face is sold online and marketed through social media, radio, and newspapers throughout the country, jurisdiction could apply in New York as well as if Funny Face had conducted business there. The long-arm statue would apply in that there would be “sufficient minimum contacts within the state,” as established by International Shoe Co. v. State 1
3-2 Milestone One: Case Study Oneof Washington. (Kubasek et al, 2017) Minimum contacts includes committing a tort or conducting business, such as sales, in that state. Subject matter jurisdiction is the power of the court to hear particular types of cases. It determines if a case will be heard by the state of federal court system. Essentially, if a case is not under exclusive federal jurisdiction, then it falls under the state court system. Cases involving admiralty, bankruptcy, federal criminal prosecutions, states v. states, the United States, and otherswould be exclusively federal jurisdiction. The subject matter of negligence, damage to appearance, and damage to business reputation places the case under state jurisdiction.