Business in Madison, Wisconsin
prepare written answers to the following questions.
(3 points) Saleit Co. owns a business in Madison, Wisconsin. It manufactures irrigation systems sold in Wisconsin and throughout North America. These are sold through an independent dealer network.
Horsehead Links, a New Jersey golf course, spoke to a Pennsylvania Dealer about a system for its course. The course manager had a few engineering questions related to the system's capabilities. The
dealer told the course manager to "call Saleit in Wisconsin and talk to their engineers for the answer." The manager made a five minute phone call to discuss the maximum flow in the
system. Horsehead then purchased a $195,000 system from the Pennsylvania dealer. It was installed but ultimately proved to be unable to adequately irrigate the land and Horeshead refused to pay the
bill.
Saleit Co. then filed a lawsuit against Horsehead Links in the U.S. District Court in Wisconsin. Saleit mailed the notice of the lawsuit to the course in New Jersey. Horsehead now claims the court
lacks jurisdiction over the case. Please discuss the federal court's ability to obtain subject matter jurisdiction in this case.
(3 points) Under the facts of Question 1 above, does the U.S. District Court have personal jurisdiction over the two parties? Would the U.S. District Court located in New Jersey be able to assert
jurisdiction?
(3 points) Does the U.S. legal system seem too adversarial to you? Would things be changed through use of arbitration to resolve these disputes?
(5 points) Many firms use arbitration agreements to resolve disputes arising from their business transactions. Dell Computer Co. has terms mandating arbitration in some of its contracts. You may
access the Dell standard contracts for consumers and reseller terms of sale. This is available online at:http://www.dell.com/content/topics/global.aspx/policy/en/policy?
c=us&l=en&s=gen&~section=016
Please link to the "Retail Purchaser End User Agreement." Read the agreeemnt and its terms and conditions of sale. The arbitration and choice-of-law provisions are found at the end in
sections 9 and 10.
A. Briefly summarize the dispute resolution method a dissatisfied customer would have available to them in dispute with Dell over some matter like defective software installed on a machine.
B. What are the advantages to Dell, if any, do you see in applying only Texas law?
C. Do you consider this "fair" as a method to resolve disputes?