Paul lives in New York. He buys a high definition camera from Danco Discount Camera online. Danco's webpage has a "chat" feature that Paul uses to ask a customer service representative questions about the cameras. He talks to the representative at length about a trip he is taking to California to photograph wildlife and scenery with the camera. The representative recommends the "Total X package" to meet his needs. It comes with a variety of lenses and a tripod stand. Paul buys it.

Danco is incorporated in Delaware. It has its customer service center in New York, which is where all the customer service representatives are located to answer questions online. It does not have any physical retail locations. It has storage facilities in over 30 states in the country that it uses to ship out products, including facilities in New York, California, and Georgia, which serve as regional shipping hubs. New York also serves as the national shipping headquarters, meaning that facility is the head of operations for all shipping matters. Its corporate offices and board of directors are located in Texas. Danco sold $3.5 billion dollars' worth of products. Of that, $560 million dollars of products were shipped to customers in California from the California shipping facility. Danco camera was shipped to him from the New York facility.

While in California, the tri-pod stand that came with the camera breaks. Paul goes to Danco's website late at night and talks to a customer service representative who agrees to send Paul a replacement stand to him in California for free. It is shipped from the California facility. The day the stand arrives, Paul goes out and takes some nice pictures. That night, he leaves the camera charging on the nightstand in his hotel room overnight while he sleeps. While doing so, the camera overheats and catches the room on fire. Paul is severely injured. He is physically unable to return to New York, so he sues Danco in federal court California.

California has a long arm statute that states: "A court of this state may exercise jurisdiction onany basis not inconsistent with the Constitution of this state or of the United States."

Questions:

1. Discuss whether or not the court has personal jurisdiction over Danco.

1. Discuss whether or not the court has subject matter jurisdiction over the lawsuit against Danco.