Introduction: As an employee or business owner you will likely encounter a situation where litigation is necessary. Where the lawsuit is located is important. Having to sue or defend a lawsuit outside of your business location can significantly increase the financial costs and time devoted to the litigation. Understanding jurisdiction (location) is an important tool for business.

Facts: Rocketman is the trade name of a California company that purchases old cars, refurbishes them, and resells the cars at auctions. The company purchased a vintage car through eBay from a Wisconsin company named eCar.com. eCar does not have a dealership office in California nor does it have any online sales personnel in that state. However, it does advertise automobiles for sale in California and throughout the United States through eBay .

Upon receiving the car, Rocketman discovered numerous mechanical and aesthetic problems which were materially different than how eCar described and pictured the vehicle online. After failing to resolve the issue through eBay's online dispute resolution process, Rocketman sued eCar in a California state court for damages. eCar answered that it was not subject to the jurisdiction of the state court in California because it does not do business in that state.

Question:

Please represent Rocketman.

1. Analyze and discuss the jurisdictional issues by applying the three prongs of theZippo test and then determine the likely outcome of jurisdictional issues. Make reasonable factual assumptions when necessary to complete your analysis.

Suggestions on methodology:

First, summarize therelevant facts of the case as they relate to each party. A fact is relevant if it had an impact on the case's outcome. Not all facts in the scenario are relevant. An effective method of summarizing relevant facts is to list them numerically in order as a separate sentence. For example, the first relevant fact might be: "Rocketman is a resident of California". This fact is relevant because it establishes its state of residency.

Second, list a summary of the issues as they relate to each party;

Third, identify and discuss the relevant law to be applied to each issue from the preceding paragraph;

Finally, write the conclusion in an objective (not subjective) manner.