Case Summary: SG, a resident of Illinois, promoted boxing matches for SP, an Illinois corporation. He created the concept of “Battle of Ages” and tried to sell the idea to a person, GF. The negotiations between SG and GF fell through. GF, a resident of Nevada used the same concept to promote subsequent fights. SG filed a lawsuit against GF in a federal district court.
To find: The federal district court’s jurisdiction in trying the case.
Explanation of Solution
Explanation:
The federal district court could exercise jurisdiction in this case owing to the fact that the case involves diversity of citizenship. SG resided in Illinois and GF in Nevada. Diversity jurisdiction requires that the plaintiff and the defendant should belong to different jurisdictions and the controversy amount should exceed the pecuniary limit.
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Chapter 2 Solutions
The Legal Environment of Business: Text and Cases
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- Read the following scenario and answer the question in 5–10 sentences. Fred and Frank have been operating a seasonal outdoor maintenance and landscaping business for the last three years under the name F & F Maintenance. There was no written partnership agreement. During the nonoperational winter months, Fred spends his time in Costa Rica, while Frank stays in town. In January, Frank was approached by an existing customer with a request that F & F build and install a bleacher stadium and football field for the local middle school. Frank advised the customer that, while he had no direct experience with this type of project, he was sure that he could subcontract any work that was needed. Neither Frank nor Fred had any previous experience as a general contractor. Experience aside, Frank signed a contract to complete the project for $200,000, taking a down payment of $50,000 with the remaining amount to be paid after passing inspection. At the inspection, the inspector determined…arrow_forwardJulian is a salesman for Frostee's Ice Cream Company, and he arranges a meeting with a local ice cream store to sell the company's flavors. Julian decides to wear a nice T-shirt and a pair of jeans to the meeting to match the dress code of the store. He starts by conversing with the store manager, who oversees the purchase orders for the store, and they begin builpig rapport. Julian then asks the manager questions about what types of ice cream flavors that customers have been requesting, along with what flavors are never available from the other sellers. He listens to the manager's responses and takes mental note of what the store needs to satisfy their customers. Julian has just completed the phase of the selling process. O presentation approach O prospecting O preapproach O closingarrow_forwardMike Thompson, an amateur outdoorsman, planned a trip to hike up to Machu Picchu, a city at the top of the Andes Mountains in Peru. Realizing that his current hiking gear was inadequate for the trip, he went to REI, an outdoor sporting goods store. He explained to the salesperson at REI that he needed hiking boots that could withstand the rough terrain and clothes that would allow him to hike in 15 degree (Farenheit) weather. Excited and eager, Mike set off for his trip. However, during his first day of his hike, the soles of the boots detached from the leather and he was forced to hike back to camp and cancel the rest of his trip. When he got back into town, Mike consulted an attorney. Is REI liable to Mike? If so, on what basis? Talarrow_forward
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