An individual, Sam Rice, was injured while using a survival knife manufactured by the BearArms Knife Company. Sam is a resident of the state of Iowa. He was injured in the state of Iowa, where he was using the knife to whittle a wooden cup. The BearArms Knife Company is located in the State of Delaware. It sells its knives to retail stores throughout the United States. Sam bought his knife at Paul's Discount in Iowa City. Sam’s injuries cost him – in terms of doctor’s bills and missed income from not being able to work – well over $200,000.

Sam sued BearArms Knife Company in Iowa state court for negligence. BearArms Knife Company did not, however, respond to or otherwise contest Sam’s lawsuit and Sam was awarded $425,000 in damages by the trial court.

Based on the legal information that you learned in this chapter, write answer for each of the following questions.

1. What type of judgment did the trial court award against BearArms Knife Company?

2. Which court(s)--state and/or federal courts--would have jurisdiction over Sam’s lawsuit against BearArms Knife Company?

3. Explain the reasoning for your answer to question “2”.

4. What state law would Rice have invoked in trying to show that the Iowa state court had personal jurisdiction over BearArms Knife Company?

Answer rating: 100% (QA)

1 The trial court awarded default judgment This judgments is given when the party other than plainti... View the full answer