Essay questions for chapters 2, 3, 5, 6, 7 and
8
MGT 221 Business Law I: Legal Environment of Business – MGT221FK55
Please read the following hypotheticals and answer the questions below. Please submit
your answers by 11:55 p.m. on Sunday, September 20.
Chapter 2 (The Court System) Hypothetical:
Elle is walking to work along a sidewalk next to a road. A truck owned by Fast
Distribution Company (FDC) strikes and injures Elle, causing her injuries that result in
more than $250,000 in medical expenses. Elle is a resident of Georgia, where the
accident occurred. FDC has its principal place of business, and is incorporated, in
Delaware.
a) In what court(s) may Elle sue FDC? (5 points possible)
Elle may sue FDC in Delaware, because FDC has its principal place of business, and is incorporated, in
that state. FDC may be sued in Georgia, because that is where Elle’s injury occurred. FDC may be subject
to Elle’s suit in a federal court, because the parties have diversity of citizenship (Elle is a resident of
Georgia and FDC has its principal place of business, and is incorporated, in Delaware) and the amount in
