Briar Patch Dolls (Case IV) does most of its business in Colombia, where Teeny Tiny Manufacturing is located, but federal diversity exists because Briar Patch is incorporated in Ohio.

Question

Quizplus · Accepted Answer

Federal diversity jurisdiction requires that the parties be citizens of different states or a citizen of a state and a citizen of a foreign country. The location of the business operations does not determine corporate citizenship; rather, a corporation is considered a citizen of the state where it is incorporated and where it has its principal place of business. Since Briar Patch Dolls is incorporated in Ohio, its citizenship is Ohio for diversity jurisdiction purposes, regardless of where it does most of its business.

Briar Patch Dolls (Case IV) Does Most of Its Business