Lawsuit Against Reliable Valves for Defective Motorcycle Valves, Exams of Business and Labour Law

Download Lawsuit Against Reliable Valves for Defective Motorcycle Valves and more Exams Business and Labour Law in PDF only on Docsity! EXAMINATION CIVIL PROCEDURE I -- LAW 212 Section 3A -- Siegel Fall, 2004 INSTRUCTIONS 1. This is an open book examination. You may use any written materials that you have brought with you (including typewritten, printed, or published materials). Computer use is permitted. 2. You have THREE HOURS to complete the exam. 3. The exam consists of this cover page plus four exam pages numbered 1 through 4. Make sure you have all the pages. 4. There are FOUR questions. All students must answer all questions. Time allocations are: Question One: 60 minutes Question Two: 30 minutes Question Three: 45 minutes Qustion Four: 45 minutes 5. The weights of the questions are proportional to the time allocations. 6. Do not put your name anywhere on your answers. Do not indicate whether you are taking the class pass/fail. Do not write “Thank you for a great class” or anything similar on your exam. 7. If you are writing your answers by hand, remember to write legibly. 8. If, with regard to any question, you think additional facts are needed to answer the question, state clearly what facts you think are missing. Then make a reasonable assumption about the missing facts and answer the question based on your assumption. Do not change the given facts. 9. Using good judgment, address all the issues presented and assigned by the questions, even if your answers to some issues would, in real life, eliminate the need to address other issues. 10. Good luck. - Exam Page 1 - QUESTION ONE (60 minutes) Reliable Valves, Inc. (“RVI”), is a corporation incorporated in the state of Delaware. RVI manufactures valves. RVI’s corporate headquarters and manufacturing plant are located in the state of Georgia. RVI keeps its unsold inventory in a warehouse it owns in the state of South Carolina. Among other things, RVI sells valves to Harley-Davidson, Inc., a manufacturer of motorcycles. RVI’s valves are shipped to Harley-Davidson’s manufacturing plant in Pennsylvania, where they are incorporated into tires that are attached to Harley-Davidson’s finished motorcyles, which are then sold throughout the United States. RVI’s motorcycle tire valves are all identical. In the summer of 2005, a series of accidents occurs in which exploding tires cause injury or death to riders of motorcylces manufactured by Harley-Davidson’s rival Honda. Investigations prove that the accidents occurred because of defects in the tires’ valves, which were manufactured by Deadly Exploding Valves, Inc. In September 2005, Harley-Davidson takes out advertisements in newspapers and on television throughout the United States that say, “Harley-Davidson does not buy from Deadly Exploding Valves! All Harley-Davidson tires have valves manufactured by Reliable Valves right here in the USA! Check for the RVI logo before buying your Harley!” Paul Potter was born and raised in South Carolina and went to law school at the University of South Carolina. Upon graduation in June 2005, Paul is uncertain about his long-term plans, but he accepts a one-year clerkship with a judge in San Francisco, California. In October, 2005, Paul spends a weekend at a motorcycle convention in the state of Oregon. While there, he buys a new Harley-Davidson motorcycle for $15,000, after carefully noting the RVI logo on the tire valves. In November, 2005, Paul’s parents move from their long-time family home in which Paul grew up to a new home in Georgia. In December 2005, Paul is riding his motorcycle in California when the rear tire explodes and he crashes into a tree. Paul requires surgery and his motorcycle is totaled. An investigation proves that the crash was caused by a defect in the tire’s RVI valve. Paul recovers from surgery, returns to his clerkship, and brings suit against RVI in the United States District Court for the District of Oregon in January 2006. He bring a $15,000 claim for property damages, a $20,000 claim for medical expenses, and a $50,000 claim for damages for pain and suffering. Process is properly served. RVI moves to dismiss based on such grounds as might be expected given the above facts, but makes no arguments relating to venue. A statute of the state of Oregon provides, “In all civil actions, the courts of this state may exercise personal jurisdiction whenever permitted by the Constitution of the United States.” You are the law clerk to the district judge hearing the case. Write a memorandum discussing the issues and making a recommendation as to how the judge should rule on the pending motion. (In case you missed them, be sure to read instructions 6-9 on the cover page.)