Asked by Maria del Mar Ribas on Jul 09, 2024
Verified
In the International Shoe case,the United States Supreme Court held that a foreign corporation must have certain "minimum contacts" with the state such that asserting jurisdiction over the corporation does not offend "traditional notions of fair play and substantial justice." Which of the following did the Court use to justify its holding?
A) Public policy
B) Benefit theory
C) Corporate responsibility
D) Exchange theory
Minimum Contacts
A criterion used to determine if a defendant has sufficient connections to a jurisdiction to justify being subject to its laws and courts.
Traditional Notions
Established or customary beliefs, principles, or practices that have been accepted over time.
Fair Play
A concept embodying fairness, respect, and sportsmanship in both sports and broader contexts.
- Analyze the legal criteria for a foreign corporation's presence and business operations in another jurisdiction.
Verified Answer
MS
Monikpal SinghJul 09, 2024
Final Answer :
B
Explanation :
The Supreme Court justified its holding with a benefit theory: When a foreign corporation avails itself of the protection of a state's laws,it should suffer any reasonable burden that the state imposes as a consequence of such benefit.In other words,a foreign corporation should be required to pay for the benefits that it receives from the state.
Learning Objectives
- Analyze the legal criteria for a foreign corporation's presence and business operations in another jurisdiction.
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