Question
Facts: Nigel is a businessman in Nevada using the trade name of Classic-Rebuild. LLC. The business is incorporated and has a small board of directors.
Facts: Nigel is a businessman in Nevada using the trade name of Classic-Rebuild. LLC. The business is incorporated and has a small board of directors. Nigel was born in Scotland, graduated from the University of Edinburgh with double major in mechanical and electrical engineering, and later married an American citizen (Karla). He then became an American citizen. He displays the American flag in his business and on a flagpole outside his shop.
The business purchases classic cars, refurbishes them as electric cars, and then resells them to customers. In addition, the business works with clients to rebuild their classic cars with the newest structural modifications, including electronics. The business is growing. On of his rebuilds sit in the lobby of a major casino in Las Vegas.
Recently, the company purchased a vintage car through eBay from a Wisconsin company named eCar.com. eCar.com does not have an office in Nevada nor does it have any online sales personnel in that state. However, it does advertise automobiles for sale in Nevada and throughout the United States through eBay .
Upon receiving the car, Nigel discovered numerous mechanical and aesthetic problems which were materially different than how eCar.com described and pictured the vehicle online. After failing to resolve the issue through eBay's online dispute resolution process, Classic-Rebuild sued eCar.com in a Nevada state court for damages. eCar.com answered that it was not subject to the jurisdiction of the state court in Nevada because it does not do business in that state.
Assignment: Analyze and discuss the jurisdictional issues by applying the three prongs of theZippotest and then determine the likely outcome of how jurisdictional issues will affect Nigel's lawsuit. Make reasonable factual assumptions when necessary to complete your analysis. If you decide Nigel does not have a claim, discuss what additional facts must be shown to present a valid claim.
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