Hello, I am currently taking BUS311: Business Law I (BBL2118B) Week 1 discussion forum: The professor asked the below captioned question:

HypotheticalCaseProblems

Case1.JavieristravelingfromhishomeinNewYorktoDallas,Texas.WhiledrivingthroughOklahoma,hisbrakesfailandheisinjuredintheensuingcrash.Javierwantstosuethemakerofhiscar,Energy-AutoInc.Energy'sheadquartersisinNewYork.ItdoesnothaveanydealershipsinOklahomaordoanyadvertisinginOklahoma.

1. Inwhichstateorstatescantheplaintiffsuethedefendant?
2. Assumethattheplaintiffwillsuethedefendantfor$100,000indamages.Canthesuitbebroughtinfederalcourt?Explain.
3. IfJavieronlyhadrelativelyminordamage,andwassuingfor$9,000,couldhesueinfederalcourt?
4. Inasimilarsituation,adefendantarguedthattheautomanufacturercouldstillbeheldliableinOklahoma,becauseitwasforeseeablethatthedefectivecarcouldendupthereandcauseinjury.Thecourtdisagreed,andfoundOklahomadidnothavejurisdiction.Whydidthecourtthinkitinadvisabletobasejurisdictiononforeseeability?Ifithadruledotherwise,wherewouldmakersofproductspotentiallyhavetostandtrial?Whatwouldthisdototheircosts?

Read the Hypothetical Case Problem #1 at the end of Chapter 1 and respond to these questions:

• If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant.
• In which state or states can the suit be brought?
• Assume that Javier incurred $100,000 in damages.
• Analyze whether the suit can be brought in federal court
• Explain the advantages and disadvantages of federal versus state court for this type of suit.

And I responded with the following:

I hope all of you are doing well.

• If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant.

The plaintiff in this hypothetical case will be Javier because he is bringing suit and Energy-Auto Inc., would be the defendant because they are being prosecuted for a criminal offense. (Rogers, 2012).

• In which state or states can the suit be brought?

The state of New York is where the suit will be filed by Javier (plaintiff) because (1) It is his hometown; (2) Energy-Auto Inc. (defendant) corporate office is also located in the state of New York.

• Assume that Javier incurred $100,000 in damages.
• Analyze whether the suit can be brought in federal court
• Explain the advantages and disadvantages of federal versus state court for this type of suit.

If Javier incurred $100,000 in damages he would file suit in the state of New York because both the plaintiff (Javier) and the defendant (Energy-Auto Inc.) reside in New York . Furthermore, the incurred damages as stated by (Rogers, 2012) "the claim must be greater than $75,000, meets the requirement of the diversity of citizenship". The advantages and disadvantages for federal versus state court may actually vary. I would think that the plaintiff is likely to have an advantage in state and only if the judge does not want to make a ruling that may potentially impact his reputation. If, Energy-Auto Inc., being the defendant may have more of an advantage in federal court because they are not concerned with views or votes from the state of New York. (Rogers, 2012)

Reference.

Rogers, S. (2012).Essentials of business law. Bridgepoint Education.

The Professor Asked me the following question:

Sandra - Thank you for your interesting discussion here. However, if both parties are from New York, can the case be heard in Federal Court even if the amount of the lawsuit is over $75,000? In other words, does diversity jurisdiction exist? Also, you need to provide more explanation about the advantages/disadvantages of state vs. federal court.

Can you please help me respond to his inquiry?

Thank you