DFA, a Kansas cooperative, has its principal place of business in Kansas City, Missouri. Bassett, an international
commodities broker and a Canadian corporation, has its principal place of business in Toronto, Ontario. Bassett is
not qualified to do business in Missouri; has no agent for service of process, offices, property, bank accounts,
telephone listings, or employees there; and does not advertise or promote its business there. Between July 2009 and
February 2011, Bassett purchased more than 3.5 million pounds of dairy products from DFA in about 80
transactions totaling $5 million. The parties did not have a long-term contract, agreeing to each transaction
individually by phone. Bassett communicated by phone and email with DFA‘s Missouri headquarters about delivery
and billing. Bassett stopped paying on his account at DFA and DFA sued Bassett in Missouri for failure to pay.
The district court dismissed the suit for lack of personal jurisdiction. The total amount due on the account was
$220,000. Answer the following three questions based on this fact pattern.
119. Which of the following statements is correct about subject matter jurisdiction?
a. Federal courts in the United States would have subject matter jurisdiction.
b. Federal courts in the United States do not have subject matter jurisdiction because Bassett is from another
country.
c. Federal courts do not have jurisdiction because the amount in dispute does not meet the federal minimums
for jurisdiction.
d. Because this is a contract action and no federal statute is involved, the federal courts do not have jurisdiction.
120. Which of the following is correct about in personam jurisdiction?
a. The courts of Missouri would have jurisdiction over the case because Bassett did business on a regular basis
with a Missouri company.
b. The courts of Missouri would not have jurisdiction because Bassett had no presence in the state.
c. The terms of the contract would control whether the courts of Missouri had jurisdiction over Bassett.
d. No state in the United States would have jurisdiction over Bassett.