CIVIL PROCEDURE I
JUDGE GARCIA& PROFESSOR OPPENHEIMER
MID-TERM EXAMINATION
OCTOBER 15, 2002
INSTRUCTIONS
This is a closed book exam. You may not consult any notes, books, or any other
materials, nor may you discuss the question among yourselves or with any other persons.
You have one (1) hour to complete this exam.
This exam consists of one (1) essay question, which will account for one-third (1/3) of your final grade.
Write your exam number on your exam envelope, all blue books, and at the top of this page. Do not use your name, student ID number, or Social Security Number on any exam materials.
Please write your essay in the blue book(s) provided. Please write on one side of each page, and on every other line. Please write legibly.
When finished, you must return all portions of this exam to the exam envelope including the exam questions, notes on scratch paper and any used blue books.
Pat Pedestrian, a California resident on vacation in New York, was hit by a car while crossing the street. The car's brakes had failed, causing the accident. Pat was seriously injured, and returned to San Francisco for treatment.
The car had been manufactured in New York by "Deadly Auto, Inc." It had been sold by Deadly Auto to "Dealer-Buyer, Inc.," a major New York auto dealer. Dealer-Buyer sold it to Dan Carol, the driver, a New York resident.
Soon after the car was manufactured, it became widely known at a design defect made the brakes unreliable. Deadly Auto informed its dealers, including Dealer- uyer, of how to correct the defect, but Dealer-Buyer took no steps to contact Dan Carol to correct he problem. Nonetheless, Dan Carol learned of the defect through news accounts, but neglecte to take steps to have the car repaired.
Deadly Auto has no employees or offices in California. Through a network of independently owned dealers, it has an exclusive sales relationship with over 3,000 dealers nationwide, including 300 in California. It sells approximately 300,000 cars each year to its dealers in California, shipping them from its plant in New York to be sold in California. It spends over $10 million in advertising directed at the California market each year.
Dealer-Buyer also has no employees or offices in California. It sells cars only in New York State, where it sells approximately 2,500 cars manufactured by Deadly Auto each year. It advertises by placing ads in New York region newspapers, on New York TV and radio, by sponsoring cultural events in New York and by promoting a website (www.Dealer-Buyer.com) which can be access by anyone anywhere with an internet connection. In the past year, there have been hundreds of "hits" (persons accessing the website) from people in California.
Dan Carol travels to California every other year for a family vacation in San Diego. His only other link to California is that he has friends who live here with whom he exchanges letters and phone calls from time to time, and whome he sometimes sees during his San Diego vacations.
California law permits California courts to exercise personal jurisdiction over any person or corporation served with a summons and complaint while physically present in the State, and over any person or corporation served by mail out of state if the exercise of jurisdiction is consistent with the Constitution of the United States.
Pat has filed a civil action in the Superior Court for the City and County of San Francisco, a California State court, naming Deadly Auto, Inc., Dealer-Buyer Inc., and Dan Carol as defendants. Deadly Auto, Inc. and Dealer-Buyer, Inc. were served by mail. Dan Carol was personally served while while present in San Diego on vacation.
All three defendants have made a special appearance in the Supererior Court to object to the court exercising personal jurisdiction. You are a clerk for the Superior Court and the judge has asked your advice on how to rule on these motions. How should the judge the rule?