1. You have two (2) hours to complete this exam.

2. This is a closed book exam. You may not consult any notes, books, or other materials, nor may you discuss the question among yourselves or with any other persons.

3. This exam consists of two (2) parts. It consists of twenty-five multiple choice questions, which will account for one third of your grade, and one essay question, which will also account for one third of your final grade. It is recommended that you spend one hour on each section.

4. Multiple choice questions are to be answered on the separate “ParSCORE TEST FORM” using pen or pencil and following the instructions on that form. If you change your answer, place a clear X through the wrong answer and mark the correct answer. A machine will score the exam and any ambiguities will be counted as a wrong answer.

5. If you are hand-writing your essay answer, please write in the blue book(s) provided. Please write on one side of each page, and on every other line. Please write legibly.

6. Write your exam number on this exam envelope, all used blue books, at the top of this exam packet, and on the ParScore answer sheet. Do not use your name, student ID number, or Social Security Number on any exam materials.

7. At the conclusion of the exam, return all test materials, including blue books, ParScore answer sheet, scratch paper, and this exam packet to the envelope and submit it to the proctor. DO NOT seal the envelope. Students who do not return all exam materials at the end of the exam may not be graded.

GOOD LUCK!

II. Essay Question

Senator John Kerry decided to go ahead and sue those Slow Boat Veterans for the tort of defamation, though in Ohio, not Wisconsin. Here are the pertinent facts.

Sen. Kerry has his permanent home in Massachusetts. The Slow Boat Veterans, Inc. (SBV, Inc.) is a non-profit corporation, incorporated under the laws of Texas. It has its headquarters in Houston, and conduct most of its activities in Texas. During the most recent Presidential campaign, it placed a series of TV ads calling Senator Kerry a liar, traitor and coward on TV stations in Wisconsin, Iowa and Ohio. Many people believed the accusations. Exit polling suggests that the ads had a significant effect on the outcome of the Presidential election in Ohio, where Sen. Kerry lost to President Bush by a close margin.

The SBV ads were based on information posted to a passive website by Neocon, an investigative reporter and life-long resident of Texas. His records are all stored at his home in Houston.

Soon after his defeat at the polls, Sen. Kerry brought a civil action for defamation against SBV in a state court in Cleveland, Ohio. SBV immediately removed the case to the United States District Court for the Northern District of Ohio (located in Cleveland). Sen. Kerry moved to remand; his motion was denied.

SBV then implead Neocon pursuant to FRCP Rule 14. It took the position that if it had any liability (which it denies), it was based on the statements Neocon published on his website. Neocon moved to dismiss for lack of subject matter jurisdiction (though he didn't object to personal jurisdiction). He argued that because he and SBV were citizens of the same state, the court lacked jurisdiction. His motion was denied.

SBV and Neocon then joined in a motion to transfer venue to the United States District Court for the Southern District of Texas (located in Houston), where it and Neocon are both located. The motion was denied.

SBV then added a counter-claim against Senator Kerry, claiming that when the ads were released, one of his campaign aides was so angry he threw a brick through the SBV headquarters window, and that Sen. Kerry was responsible for the resulting $300 in damage. Kerry moved to dismiss based on lack of subject matter jurisdiction. His motion was denied.

Please write an essay evaluating whether the court ruled correctly on:

1. Kerry's motion to remand;
2. Necon's motion to dismiss;
3. SBV and Neocon's motion to transfer venue; and
4. Kerry's motion to dismiss SBV's counter-claim.

END OF EXAM