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. Mini Gun, Inc., a Wyoming corporation, manufactures tiny guns that are used in the manufacture of G.I. George,a doll that looks like a

 

. Mini Gun, Inc., a Wyoming corporation, manufactures tiny guns that are used in the manufacture of G.I. George,a doll that looks like a soldier. The dolls in turn are manufactured by HB Toys, a Texas corporation, which distributes them in the southwestern U.S. Mini Gun has no control whatsoever over where HB Toys chooses to sell the G.I. George dolls, but it knows from payments it has received over the last ten years that HB Toys has been selling 1,000 dolls a year in New Mexico. Mini Gun's contract with HB Toys calls for it to be paid based on the number of dolls sold. In New Mexico, a toddler swallows the gun of a G.I. George doll and suffers personal injuries. The child's parents sue Mini Gun in New Mexico, which has a long-arm statute authorizing jurisdiction to the constitutional limit. May New Mexico courts exercise personal jurisdiction over Mini Gun?

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