Question

Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing a. under the minimum contacts test. b. on the basis of a federal question. c. only if Beef Packing files the suit. d. in no circumstances.

Answer 1

Answer:

A. under the minimum contracts test.

Explanation:

Minimum contract test is a procedure that a court could do in order to determine a jurisdiction for a certain case. This most likely done when one of the party resided in a different state.

In Most business transactions, minimum contracts tend to favor  the sellers/producers' state as the main jurisdiction. (In this case, Alabama)

This happen because one producer can to sell their products to customers nationwide.  This made the producers became a potential target of lawsuits from people in different states. Since It is almost impossible for that one company to cater to the law of different state, the company's location tend to be favored as the jurisdiction.