Question

Kristi, a resident of Florida, sues Laura, a resident of Colorado, in a Colorado state court. The suit involves a contract entered into by Kristi and Laura. The contract was written in Florida and covers a refrigerator Kristi bought in Colorado and had shipped to Florida. The Colorado Court has

a. In Personam jurisdiction over Laura but not Kristi since Kristi is not a resident of Colorado.
b. In Personam jurisdiction over both Kristi and Laura and In rem jurisdiction over the subject matter of the case.
c. In Rem jurisdiction but not In Personam jurisdiction.
d. In Personam jurisdiction but not In rem jurisdiction.

Answer 1

The Colorado state court has both In Personam jurisdiction and In rem jurisdiction in the case where Kristi from Florida sues Laura from Colorado, due to the interstate nature of the contract and the location of the defendant.

Step-by-step explanation:

The question concerns the scope of the jurisdiction that a Colorado state court might have in the case presented. Jurisdiction refers to a court's power to hear a case and make legal decisions. In the scenario, Kristi, a Florida resident, sues Laura, a Colorado resident, over a contract related to a refrigerator purchased and shipped across state lines.

The correct answer to the question would be b. In Personam jurisdiction over both Kristi and Laura and In rem jurisdiction over the subject matter of the case. The Colorado court would have personal jurisdiction over Laura because she is a resident of Colorado. Additionally, the court could assert personal jurisdiction over Kristi because the contract was connected with an act (purchasing the refrigerator) that she purposefully directed towards Colorado. In rem jurisdiction applies because it's about a dispute over an object (the refrigerator), which was initially in Colorado.

The concepts of diversity of citizenship, as well as federal question jurisdiction, inform this scenario but are more directly relevant to federal courts, which hear cases involving residents of different states with damage claims of at least $75,000 or federal questions involving the Constitution, federal laws or treaties.