Anthony owns and operates a bee hive business, Buzzy Bees, Inc., (BB, Inc.) from a shop in his Pennsylvania hometown. BB Inc. advertises and sells in Pennsylvania from the shop, and advertises and sells over the internet. Using BB Inc.'s website and her credit card, on April 5, Sandra purchased $5,000 worth of live Bees and hives from her home in Nashville, Tennessee. She requested the bees to be shipped to her family farm hotel in Indiana on April 15. The bees arrived on April 14, but Sandra claimed they were either dead or dying.
Sandra sued BB Inc. in a Texas court to recover her $5,000. Peter, on behalf of BB Inc., filed a motion to dismiss claiming the Texas court has no jurisdiction.
1. Analyze and explain/justify your rationale: which court has jurisdiction to hear the case, and why? Think of all the possible jurisdiction and analyze each one.
2. What is the legal basis for the court's jurisdiction over BB Inc. (i.e., what type of jurisdiction exists over BB, Inc.)?
3. Would you advise Peter to use ADR or go to court to resolve this dispute? Why or why not? If you advise ADR, which type of ADR would you recommend and why.