Question

Related to a transaction, which of the following actions would cause it to be subject to the laws of State Z?

I. The offer and acceptance occur in State Z.
II. The offer originates over the phone from State Z and is directed to State A.
III. The offer is mailed from State A, directed to State Y, and accepted in State Z.
IV. The offer originates over the phone from State Y and the sale occurs in State A.

a. I and II only
b. II and III only
c. I, II, and III only
d. I, II, III, and IV

Answer 1

Transactions are subject to the laws of State Z if significant steps like offer and acceptance occur within its jurisdiction. Based on scenarios provided, I, II, and III involve State Z in the transaction process, while IV does not. Therefore, the correct answer is c. I, II, and III only.

Step-by-step explanation:

The determination of whether a transaction is subject to the laws of State Z involves addressing where the significant parts of the transaction occurred, such as the offer, acceptance, and fulfillment of the transaction. According to Article IV, the Full Faith and Credit Clause requires states to respect the public acts, records, and judicial proceedings of every other state, which includes the legality of contracts and transactions.

Looking at the scenarios provided:

• 
  
• 
  
• 
  
• 
  

The correct answer, taking into consideration that the transaction would be subject to the laws of State Z when significant steps such as offer or acceptance take place within its jurisdiction, would be c. I, II, and III only.