CHAPTER 2: THE COURT SYSTEM 11
ESSAY QUESTIONS
1. Chase is injured in an accident while driving an off-road vehicle made by
Drivers Edge, Inc., an out-of-state corporation. Chase files a suit against
Drivers Edge, alleging negligence, and mails a summons and a copy of the
complaint to the firm by certified mail, return receipt requested. The envelope is
addressed in part to “Elvin, President, Drivers Edge, Inc.” The receipt is
returned with the signature of “Francine,” a Drivers Edge employee. A U.S.
Postal employee later testifies that Francine usually receives mail on Drivers
Edge’s behalf. Drivers Edge does not respond to the suit. In a default
judgment, Chase is awarded damages of $500,000. Later, Elvin claims that he
was not notified of the suit and asks the court to set aside the judgment. What
is the issue in this set of facts? What rule applies? What should be the result on
the application of the rule? Why?
2. Tech Performance, Inc., completes programming and other tech services for
Uno IT Products Corporation. When Uno’s computer system crashes, it loses
$500,000 worth of business and pays $100,000 to have the system
reprogrammed. Uno IT announces to the media that the crash was due to Tech
Performance’s incompetence and files a complaint in a federal court against
the firm. What are Tech Performance’s options in response?