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Troy set up a "sham" website from which he sold phony shares of stock in a phony corporation. He did
not actively seek out any customers, rather, he linked his website to a legitimate web page that offered
"tips" for people seeking to do their own trading on the stock market. When a user of this legitimate site
logged on to its page, Troy's site would "pop up," offering to make the user rich in a short period of time.
Once the user clicked on to Troy's site, they would be offered Troy's phony shares. Troy made nearly a
million dollars from this scam. Rick was looking to enter the stock market on his own and thought he
would find out more about it on the web. He finally located the legitimate service, and, seeing Troy's add
pop up, clicked on to it. Interested in the product, Rick purchased shares in Troy's phony corporation.
Once he realized he had been scammed for thousand's of dollars, Rick wanted to sue Troy. Troy lived in
Delaware. Rick lived in Ohio. The legitimate website's owner lived in California. Which court should hear
Rick's case? Explain your answer.

Troy set up a sham website from which he sold phony shares of stock in a phony corporation He did not actively seek out any customers rather he linked his websi class=

Respuesta :

In this case, the issue to consider is if the court has personal jurisdiction over Troy.  A federal court in Delaware has personal jurisdiction over Troy, and can hear Rick's case.

  • However, the court must not be a state court because the case involves federal securities and antitrust laws.  Cases involving federal securities and antitrust laws are only handled in federal courts, and the residence of Troy is immaterial.

  • Personal jurisdiction implies that the judge's decisions can affect Troy.

  • The Facts on Court Jurisdiction:
  1. Troy lived in Delaware
  2. Rick lived in Ohio
  3. Legitimate website's owner lived in California
  4. Federal Trade Commission has jurisdiction over the U.S.

Thus, Rick can sue Troy in any federal court because it has jurisdiction over the case involving scamming.

Read more about court's jurisdiction at https://brainly.com/question/15100354

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