Beatrice owns a trucking company in Texas, and is looking for a few new trucks to add to her fleet. She executes a contract with the partnership of Ted & Larry Trucks for the purchase of three trucks, each valued at $50,000. However, when Beatrice receives the trucks, it is obvious that they are in disrepair and not at all what she ordered. In preparation for bringing a suit against Ted & Larry Trucks, Beatrice finds out that the partnership was created in Louisiana, where Larry lives, but that Ted lives in Texas.
a. Beatrice would like to file her claim in federal court. Can she do so? Explain your response.
b. Assume the contract between Beatrice and Ted & Larry Trucks has an arbitration clause and that Beatrice files suit in a Texas state court. After Beatrice files suit, Ted & Larry Trucks files a motion requesting the court to compel arbitration. If Beatrice argues that the arbitration clause is unenforceable because it does not comply with the Texas arbitration statute (requiring that notice of arbitration must be printed on front page of contract in bold, capital letters), what is the likely result? In other words, will the Texas court compel arbitration? Explain your answer.