Oklahoma resident Samantha Guffey purchased a used 2009 Volvo XC90 (Volvo) from Odil Ostonakulov and Motorcars of

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Oklahoma resident Samantha Guffey purchased a used 2009 Volvo XC90 (Volvo) from Odil Ostonakulov and Motorcars of Nashville Inc. (MNI). Ostonakulov resides in Tennessee. MNI is a Tennessee corporation with its principal place of business in Nashville, Tennessee. Ostonakulov and MNI operate a used car lot in Nashville. The sale occurred after Guffey was the winning bidder for the car in an auction by MNI on eBay. After receiving the Volvo, Guffey determined that it was not in the condition advertised. She later sued Ostonakulvo and MNI in an Oklahoma state trial court for alleged fraud and alleged violations of an Oklahoma consumer protection law. The defendants moved to dismiss for lack of in personam jurisdiction.

In an affidavit Guffey provided for the court as it considered the defendants’ jurisdiction objection, Guffey stated that she bid on the Volvo listed on eBay based, in part, on the representation of a 30-day limited warranty on the car. The affidavit also stated that after she submitted her bid, but several days before the closing date of the auction, she received an e-mail solicitation from Ostonakulov suggesting that she contact him by phone and negotiate a “buy-it-now” price for the vehicle. She chose not to do so, but only after calling and speaking with him personally about the matter. After Gulley learned that she had won the auction with the highest bid, she had her father call and speak to Ostonakulov about final details and payment instructions. Ostonakulov mailed a purchase agreement to Gulley’s father’s office in Oklahoma City. Gulley signed the agreement and returned it to Tennessee. Ostonakulov also helped arrange shipping of the vehicle to Oklahoma, where Guffey took delivery. According to Guffey’s affidavit, the eBay sale to her was not an isolated transaction for the defendants and that they have between 12 and 35 cars listed for sale every day on eBay. The affidavit also asserted that the defendants had sold at least three cars in Oklahoma and that they have sold more than 30 cars to Oklahoma residents. 

Oklahoma has a long-arm statute that applies to the full extent permitted by due process principles. The Oklahoma trial court dismissed the case after concluding that it did not have in personam jurisdiction over the defendants. Guffey appealed to the Supreme Court of Oklahoma. How did that court rule on the jurisdiction question?


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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