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12 August, 09:41

Robert, who lives in ohio, files a lawsuit against trading post, a washington company, in an ohio state court. the trading post's only sales activity outside the state of washington occurs via its web site. according to the sliding-scale standard, the ohio court can always exercise personal jurisdiction over out-of-state defendants based on internet transactions if the court finds that the defendant has:

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  1. 12 August, 12:24
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    B) conducted substantial business with Ohio residents through its Web site.

    Explanation:

    If Trading Post has not conducted substantial business with Ohio residents, then the Ohio court will not have jurisdiction to serve them.

    The key word here is substantial business which can vary depending on the size of the company. Generally when only one client is involved, having substantial business with that specific client means having total gross sales of over $5,000 during one period. When a group of clients are involved, the general rule is that in order for substantial business to exist, at least 25% of the company's total revenue must be provided by that group of clients.

    So in order for the Ohio court to have jurisdiction over Trading Post, at least 25% of Trading Post's total revenue must be provided by Ohio residents.
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