Question

Create a legal issue between a business you own and a customer of your product or service. Describe the circumstances of the dispute and discuss which court will have JURISDICTION over your dispute and why. You must use legal terminology and legal reasoning for your decision.

Answer 1

As the owner of a business that makes and sells microwave ovens, a new upgraded  product is introduced in tune market. The microwave product has been upgraded with a new electrical charger system that claims to consume less energy while in use. Customers bought the new microwave products for its energy efficiency. Of the first 5000 units sold, 1 customers complained of the microwave product catching fire when plugged into their home charging station. The customer demanded refund and compensation for their loss. The business owner made a case that the fault is with the switching systems in the customer’s home and there is nothing faulty about the new microwave oven product.

This type of dispute would be a typical product liability under tort law. Customers can sue for damages on the basis of product design or manufacturing defect, failure to warn about the defect, negligence, warranty (Express or Implied). The business owner can defend on the basis that the customers misused the product in a way that is unforeseeable to an average person.

Jurisdiction of such a case:

Generally the jurisdiction of the case would be in the place where the event occurred. The jurisdiction of the court depends on the subject matter jurisdiction and the personal jurisdiction. The constitution defines certain subjects like citizenship, bankruptcy, federal crimes, IRS tax disputes and high value damage claims under the jurisdiction of the Federal Courts. Most other subjects like contracts, torts and civil disputes are under the jurisdiction of State Courts. As far as personal jurisdiction, the court must have power over the parties based on their residence and ,place of usual business. In this case, the jurisdiction will be at the level of the State Courts since the subject matter is related to product liability and the damage is of a low value as reported in only 1 out of 5000 units sold.