9) Pamela, a resident of Kentucky, entered into a contract to purchase merchandi

Question

9) Pamela, a resident of Kentucky, entered into a contract to purchase merchandise from the Distribution Company, which is incorporated in Delaware and has its principal place of business in Cleveland, Ohio. Because she claimed that some of the merchandise was defective, Pamela sought a refund of the purchase price. When the Distribution Company refused to refund her money, Pamela sued in the state court system of Kentucky. An argument between these parties arose concerning what states' laws governed the resolution of this dispute. Which of the following responses is the most accurate statement?

a. The contract law of Kentucky is applicable since the plaintiff resides in this state.

b.         The contract law of Delaware is applicable since it is the state of incorporation of the Distribution Company.

c.         The contract law of Ohio is applicable since the merchandise was shipped from this state.

d.         The applicable law cannot be determined without additional information about the contract's provisions and the three states' conflicts of law principles.

Explanation / Answer

As there are 3 states involved, usually the contract signed between the parties has specification of the governing law and jurisdiction clauses in case of any kind of disputes. So, the applicable law cannot be determined without additional information about the contract's provisions and the three states' conflicts of law principles.

Answer: Option d

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.