BUS311 CASE Study 1

Read the Hypothetical Case Problem #1 at the end of Chapter 1 and respond to these questions:

1. If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant.
2. In which state or states can the suit be brought?
3. Assume that Javier incurred $100,000 in damages.

a) Analyze whether the suit can be brought in federal court
b) Explain the advantages and disadvantages of federal versus state court for this type of suit.

If Javier sued Energy-Auto, Javier would be the plaintiff and the defendant would be the business. Our text book states that “The other type of federal subject matter jurisdiction is known as diversity of citizenship. Diversity jurisdiction means that the plaintiff (the person suing) and the defendant (the one being sued) are from different states’’ (Rogers, 2012). Javier can sue in New York since that is his home of record even if it happened in Oklahoma. If Javier had 100,000 in damages it can go to federal court, According to our text book the claim has to be over $75,000 and the rationale is that an out-of-state party might face local prejudice in state courts so they are given the choice to go to federal court (Rogers, 2012). Now this case can still be brought to federal court since both the plaintiff and defendant are both out of state parties, and would be heard at federal court under diversity jurisdiction. The advantage of federal versus state court would be a judge would not lose its job for making the wrong ruling in this case which is why it is sent to federal court and rulings are heard from a judge that has been appointed forever or until he/she is impeached or reaches retirement. Disadvantage would be state vs. federal court is the state wouldn’t have subject matter jurisdiction in this case and would not know how to handle it the case.
Works Cited
Rogers, S. (2012). Essentials of Business Law. Bridgepoint Education, Inc.

Cited: Rogers, S. (2012). Essentials of Business Law. Bridgepoint Education, Inc.