State of Confusion

In: Business and Management

Submitted By coloradobinkey88
Words 1160
Pages 5
State of Confusion
Kelly Jensen
University of Phoenix
Business Law
Bus/415

Tanya Trucker, owner of her own trucking company in the state of Denial wants to file a lawsuit against the state of Confusion in order to overturn a statute in Confusion that requires trucks and towing trailers to use a “B-type truck hitch” which only can be purchased in the state of Confusion where it is manufactured. The statute in turn forces trucking companies that drive through the state of Confusion to purchase the hitch in order to comply with the state statute. The other option to avoid purchasing the hitch, which is only “good” in the state of Confusion, is to drive around the state. The statute causes trucking companies increased costs and violates the commerce clause of the U.S. Constitution. The commerce clause gives the federal government the exclusive right to regulate interstate commerce (Cheeseman, 2010). Since two states are involved, if the legal question was that of state law, such as occurs in a car accident, then Tanya would file her suit in state court in either the state of Confusion or Denial. If the suit involved state law and damages or compensatory damages exceeded $75,000 than a federal court could hear the case applying state law. This is known as diversity of citizenship. The criteria for diversity jurisdiction is that the citizens, including corporations, are from different states; a citizen of a state and a citizen of a foreign country; and, a citizen of a state and a foreign country where the foreign country is the plaintiff. In this case, the legal question is federal, so Tanya would file in U.S. Federal Court. The case involves a state statute that violates the U.S. Constitution’s commerce clause. Cases where the question of law is federal are those “arising under the U.S. Constitution, Treaties, and federal statues and regulations”…...

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