Ralph Waters operates a watch repair business in Mesa Arizon

Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his parts from out-of-state suppliers. He orders watch faces from a supplier in Escondido, California. The supplier does not have a sales force but relies on catalogues shipped to watch dealers throughout the country as his means of marketing. Ralph installed several of the suppliers\' watch faces on his customers\' watches. A strange chemical reaction between perspiration and the faces of the watches caused Ralph\'s customers to develop rashes and nausea, with some requiring hospitalization. Ralph wishes to bring suit to recover damages ($75,500) from the Escondido supplier. Which of the following statements is true?

Ralph must bring suit in California to gain jurisdiction over the supplier.

Ralph has a diversity action that can be brought in federal court.

Ralph will not be able to bring suit in Arizona because there are no contacts in the state.

none of the above

Solution

Correct Answer:
B. Ralph has a diversity action that can be brought in federal court.

Explanation:
The Federal Court can take this case if Ralph approaches the federal court, because of the two reasons. The first reason is the value of the claim that is $75500 and it is higher than the value of $75000. So, the Federal court can take this civil case. The second reason is the issue of diversified jurisdiction. Ralph belongs to the state of Arizona and the supplier belongs to the state of California that make these two entities to be the citizen of the different states. So, the case can be followed under the jurisdiction of the Federal Court.