Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 12

Sam Simpleton, a resident of Kansas, and Nellie Naive, a resident of Missouri, each bought $85,000 in stock at local offices in their home states from Evil Stockbrokers, Inc. (Evil), a business incorporated in Delaware with its principal place of business in Kansas. Both Simpleton and Naive believe that they were cheated by Evil and would like to sue it for fraud. Assuming that no federal question is at issue, assess the accuracy of the following statements:
a. Simpleton can sue Evil in a Kansas state trial court.
b. Simpleton can sue Evil in a federal district court in Kansas.
c. Naive can sue Evil in a Missouri state trial court.
d. Naive can sue Evil in a federal district court in Missouri.