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29 September, 10:16

ABC Inc. is incorporated in Delaware but conducts no business there, has made no sales there, and has no offices there. It is headquartered in and conducts its business exclusively in New York. James, a Delaware resident, gets into a car accident with a semi owned and operated by ABC Inc. The accident occurred in New York. James files suit against ABC Inc. in Delaware. ABC Inc. files a motion to dismiss on the grounds that Delaware courts lack personal jurisdiction over it. The court will

a. Grant the motion because ABC Inc. has not had sufficient minimum contacts with the state of Delaware

b. Deny the motion because James is a resident of Delaware

c. Deny the motion because ABC Inc. is a resident of Delaware

d. Grant the motion because ABC Inc. is not a resident of Delaware

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Answers (1)
  1. 29 September, 10:48
    0
    The answer is: C) Deny the motion because ABC Inc. is a resident of Delaware

    Explanation:

    For purposes of diversity of citizenship, ABC Inc. is a resident of both Delaware and New York.

    James can sue ABC Inc. in Delaware since both of them are residents of the state so jurisdiction applies. The court will deny ABC's motion to dismiss due to the fact that ABC is a resident of that state.
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