Marcus has a business that sells vitamins and nutritional supplements. He has a store and a warehouse in California and he advertises his products on the internet. Marcus has never left the state of California. Phyllis, who lives in New York, sees Marcus' advertisement on the internet and buys Marcus' special "Healthy Living Supplements." Phyllis uses Marcus' online payment system to pay for her purchase using a credit card. Marcus ships the jar of supplements to Phyllis. The label on the jar clearly states to take one supplement per day with a full glass of water. The label does not indicate that there are any side effects associated with taking more than one supplement per day. Phyllis decides to take two supplements per day, each with a full glass of water. After taking two supplements per day for a week, Phyllis gets sick. She winds up in the hospital and misses work for one week.Phyllis sues Marcus in New York State because the supplements made her sick. Her lawsuit requests a refund of the $50 for the supplements, $2,000 for lost wages, $5,000 for medical costs, and $3,000 for pain and suffering for a total of $10,050.

After she files her lawsuit, Phyllis posts the following message on her Facebook account: "Marcus' Healthy Living Supplements will make you sick. Marcus' business makes you sick. Don't buy these pills."Marcus believes that Phyllis' Facebook post is costing him business.

1. Does New York State have jurisdiction to hear Phyllis' lawsuit? Please explain.

1. If you were on the jury, how much money, if any, would you award to Phyllis? Please explain.

1. If Marcus were to countersue Phyllis, what would be the basis of his lawsuit? Please state the relevant tort and explain your answer.

1. What defense can Phyllis raise in response to Marcus' countersuit? Please state the relevant defense and explain why you think her defense would or would not be successful?