Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing
A)under the minimum-contacts test.
B)on the basis of a federal question.
C)in no circumstances.
D)only if Beef Packing files the suit.

Question

Quizplus · Accepted Answer

The minimum-contacts test allows a court to exercise jurisdiction over an out-of-state defendant if the defendant has sufficient connections or activities within the state. In this case, by entering into a contract with a Colorado company, Beef Packing Inc. has established such contacts, allowing a Colorado court to potentially exercise jurisdiction.

Cattle House Steaks, a Colorado Company, Enters into a Contract