Bar Exam (US) Civil Procedure: Question below is based on the following fact situation. Arnold a...

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Question below is based on the following fact situation.

Arnold and Bates, citizens of State Z, are plaintiffs in an action brought in the United States District Court in State X against Manco, a State Y corporation, and Storeco, a State X corporation. Manco's office and plant are located in State Y. At no time has Manco had an office or salesmen in State X. Storeco's sole place of business is in State X.

The complaint alleges that each of the plaintiffs sustained serious personal injuries when a blade broke on an electric lawn mower while the equipment was being demonstrated by a clerk in Storeco's store in State X. Each plaintiff requested damages in the sum of $80,000. The mower had been manufactured by Manco and shipped to Roe in State Z. Roe had a contract with Manco to act as exclusive distributor of Manco products in eleven states, including States X and Z.

Process was served personally on the president of Manco at Manco's office in State Y and on the president of Storeco at its office in State X. Thereafter the following occurred:

1. Manco moved to dismiss the action on the ground that the court had no jurisdiction over it.

2. Storeco filed a counterclaim against Arnold for $74,000 alleged to be due for merchandise previously sold to Arnold.

3. Manco filed a cross-claim against Storeco for $12,000 alleged to be due for merchandise previously sold by Manco to Storeco.

A motion to strike Manco's cross-claim against Storeco should be:

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    Granted, because the cross-claim is unrelated to the plaintiff 's action.
  2. B
    Correct Answer
    Granted, because there is no ancillary jurisdiction with respect to this action.
  3. C
    Correct Answer
    Denied, if the court believes that Manco's action will not confuse or divert the jury with respect to the original claim.
  4. D
    Correct Answer
    Denied, because there is diversity subject matter jurisdiction with respect to Manco's cross-claim against Storeco.
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