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MMLU / A shop owner domiciled in State A sued a distributor in a federal district court…

Problem

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

question

A shop owner domiciled in State A sued a distributor in a federal district court in State A for breach of a contract. The shop owner sought 100,000indamagesforallegedlydefectivegoodsthatthedistributorhadprovidedunderthecontract.ThedistributorisincorporatedinStateB,withitsprincipalplaceofbusinessinStateC.Thedistributorbroughtinasathird−partydefendantthewholesalerthathadprovidedthegoodstothedistributor,allegingthatthewholesalerhadadutytoindemnifythedistributorforanydamagesrecoveredbytheshopowner.ThewholesalerisincorporatedinStateB,withitsprincipalplaceofbusinessinStateA.Thewholesalerhasasserteda100,000 in damages for allegedly defective goods that the distributor had provided under the contract. The distributor is incorporated in State B, with its principal place of business in State C. The distributor brought in as a third-party defendant the wholesaler that had provided the goods to the distributor, alleging that the wholesaler had a duty to indemnify the distributor for any damages recovered by the shop owner. The wholesaler is incorporated in State B, with its principal place of business in State A. The wholesaler has asserted a 60,000 counterclaim against the distributor for payment for the goods at issue, and the distributor has moved to dismiss the counterclaim for lack of subject-matter jurisdiction. Should the motion to dismiss be granted?
Plain-text mathematical notation (without MathML)
A shop owner domiciled in State A sued a distributor in a federal district court in State A for breach of a contract. The shop owner sought 100,000indamagesforallegedlydefectivegoodsthatthedistributorhadprovidedunderthecontract.ThedistributorisincorporatedinStateB,withitsprincipalplaceofbusinessinStateC.Thedistributorbroughtinasathird−partydefendantthewholesalerthathadprovidedthegoodstothedistributor,allegingthatthewholesalerhadadutytoindemnifythedistributorforanydamagesrecoveredbytheshopowner.ThewholesalerisincorporatedinStateB,withitsprincipalplaceofbusinessinStateA.Thewholesalerhasasserteda60,000 counterclaim against the distributor for payment for the goods at issue, and the distributor has moved to dismiss the counterclaim for lack of subject-matter jurisdiction. Should the motion to dismiss be granted?
Original LaTeX notation
A shop owner domiciled in State A sued a distributor in a federal district court in State A for breach of a contract. The shop owner sought $100,000 in damages for allegedly defective goods that the distributor had provided under the contract. The distributor is incorporated in State B, with its principal place of business in State C. The distributor brought in as a third-party defendant the wholesaler that had provided the goods to the distributor, alleging that the wholesaler had a duty to indemnify the distributor for any damages recovered by the shop owner. The wholesaler is incorporated in State B, with its principal place of business in State A. The wholesaler has asserted a $60,000 counterclaim against the distributor for payment for the goods at issue, and the distributor has moved to dismiss the counterclaim for lack of subject-matter jurisdiction. Should the motion to dismiss be granted?

choices

  1. No, because the wholesaler's and the distributor's principal places of business are diverse.
  2. No, because there is supplemental jurisdiction over the wholesaler's counterclaim.
  3. Yes, because there is no diversity of citizenship between the distributor and the wholesaler.
  4. Yes, because there is no diversity of citizenship between the shop owner and the wholesaler.

subject

professional_law

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Source and history

task_id
51373cd9-99af-51c7-868f-c2833e50964b
task_key
all--test--51373cd9-99af-51c7-868f-c2833e50964b
task_revision_id
1
config / split
all / test

Official source

initial import