Fact Pattern 3-1 Bruce Lived in Tennessee and Had an Appliance Store in Appliance

question 52

Multiple Choice

Fact Pattern 3-1
Bruce lived in Tennessee and had an appliance store in Tennessee. Bruce's residence and the appliance store, however, were within twenty miles of the Virginia state line. Bruce advertised heavily in both Tennessee and Virginia. Susan, one of his customers from Virginia, had an unfortunate experience with a refrigerator purchased from Bruce in that the refrigerator caught on fire and burned down Susan's house which was worth $200,000. Susan obtained proof that the refrigerator had actually been returned to Bruce because it malfunctioned and that, rather than repair the refrigerator and sell it as used, Bruce sold the refrigerator to her as new without repairs. Susan sued Bruce in federal district court in Virginia on a number of theories. Bruce opposed the lawsuit on the basis that it could only be filed in a state court and also on the basis that he was not subject to jurisdiction in Virginia.
-For federal diversity purposes,a corporation is deemed a citizen of:

• A) the state of incorporation.
• B) the state of its principal place of business.
• C) either the state of incorporation or the state of its principal place of business, but not both.
• D) both the state of incorporation and the state of its principal place of business.

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Definitions:

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