Instructions:

1. For all questions you may assume that defendant is being "served" with summons and a complaint.

2. For problems 1 through 8 please answer the following:

a. Is there subject matter jurisdiction in federal court? Explain. If your answer is "yes," in which federal court can the case be filed and heard?

b. Is there subject matter jurisdiction in state court? Explain without naming a specific state.

c. Please identify the specific state(s) which may be able to obtain personal jurisdiction over the Defendant. Do NOT assume that Defendant has consented to be sued in any state. Please explain why for each state you have named.

PROBLEMS

(1) Harry and Potter are both domiciled in Michigan. Harry wants to sue Potter for breach of contract for $18,000.

(2) Harry is domiciled in Ohio. Potter is domiciled in Michigan. Harry wants to sue Potter for negligence for $80,000. The accident occurred in Michigan.

(3) Harry is domiciled in Ohio and Potter is domiciled in Michigan. Harry wants to sue Potter for breach of contract for $30,000 for a contract made in Michigan.

(4) Harry was born in Ohio and he continuously resides in Toledo, Ohio, since his birth. Harry goes to Hawaii every year for 30 days on vacation with his ten friends. Potter owns a home in Ohio. Potter's wife and children live in Ohio. Potter voted in Ohio in the last presidential election. Potter is currently working on an oil rig in Michigan. Potter has been continuously residing in Michigan for the last five months. Potter intents to return to Ohio as soon as his work is finished, but he does not know when his work in Michigan will be finished. Harry wants to sue Potter for breach of contract for $200,000 for a contract made in Michigan.

(5) Harry wants to sue the City of East Lansing, Michigan for violation of his rights to equal protection as guaranteed by the 14^th amendment of the U.S. Constitution. Harry is domiciled in Michigan.

(6) Harry and Potter are both domiciled in Michigan. Harry wants to sue Potter for the violation of a patent for $50,000.

(7) Charisma, Inc. is a corporation and it is incorporated in Michigan and has its principal place of business in Kentucky. Margaret is domiciled in Indiana. Margaret wants to sue Charisma, Inc. for breach of contract for $25,000.

(8) Charisma, Inc. is a corporation and it is incorporated in Delaware and has its principal place of business in Michigan. Hercules, Inc. is a corporation and it is incorporated in Delaware and has its principal place of business in Ohio. Hercules, Inc. wants to sue Charisma, Inc. for breach of contract for $200,000.

CASE PROBLEMS

1.Jones files a lawsuit against BigMoney, LLC, a brokerage firm registered with the Securities and Exchange Commission. In the lawsuit the plaintiff alleges that BigMoney violated the Securities Exchange Act by engaging in fraudulent excessive trading. BigMoney files a motion to dismiss the lawsuit because Jones had signed an agreement with BigMoney consenting to the terms of the agreement which stated all disputes between the parties must be resolved through arbitration. Jones argues that because of the nature of BigMoney's conduct she is entitled to file a lawsuit and the arbitration clause in the agreement should be nullified. Which party in this lawsuit is right and why?

2.Adam, Dianna, and Loretta are engaged in a business partnership to develop 100 acres of vacant land into a residential upscale-gated community. Their development project did not go as planed due to the economic and market conditions and they want to determine their rights. They are familiar with the court system and their option to file a lawsuit against each other but they fill it will be intrusive and may destroy their friendship or have other improper results. What can they do under these circumstances to resolve their dispute?