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MMLU / A bakery incorporated and headquartered in State A had a dispute with a mill…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A bakery incorporated and headquartered in State A had a dispute with a mill incorporated and headquartered in State B over the quality of the flour the mill had delivered to the bakery. The bakery sued the mill in a federal court in State A for breach of contract, seeking $100,000 in damages. The contract between the bakery and the mill contained a clause designating State B courts as the sole venue for litigating disputes arising under the contract. Under precedent of the highest court in State A, forum-selection clauses are unenforceable as against public policy; under U.S. Supreme Court precedent, such clauses are enforceable. The mill has moved to transfer the case to a federal court in State B, citing the forum-selection clause in the parties' contract and asserting the facts that the flour was produced in State B and that the majority of likely witnesses are in State B. Is the court likely to grant the mill's motion?

choices

  1. No, because State A law treats forum- selection clauses as unenforceable.
  2. No, because the mill should have instead filed a motion to dismiss for improper venue.
  3. Yes, because federal common law makes the forum-selection clause controlling.
  4. Yes, because federal law governs transfers of venue, and it would be more convenient for the witnesses and parties to litigate the claim in State B.

subject

professional_law

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Source and history

task_id
37f0f10a-4309-5405-b464-efe4525dd5b7
task_key
all--test--37f0f10a-4309-5405-b464-efe4525dd5b7
task_revision_id
1
config / split
all / test

Official source

initial import