Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz

Exercise 1

CompTac, Inc, which is headquartered in San Francisco, California, is one of the leading software manufacturers in the United States. The company invests millions of dollars in researching and developing new software applications and computer games that are sold worldwide. It also has a large service department and has taken great pains to offer its customers excellent support services.
CompTac routinely purchases some of the materials necessary to produce its computer games from a New York firm, Electrotex, Inc. A dispute arises between the two firms, and CompTac wants to sue Electrotex for breach of contract. Can CompTac bring the suit in a California state court? Can CompTac bring the suit in a federal court? Explain.