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TechMart, Inc., (“TechMart”) a large technology retail chain…

Posted byAnonymous October 2, 2025October 4, 2025

Questions

TechMаrt, Inc., (“TechMаrt”) а large technоlоgy retail chain headquartered in State A, entered intо a long-term licensing agreement with Zeta Electronics (“Zeta”), a small family-owned electronics store based in State Z, which is located 2,500 miles away from State A. After extensive negotiations by phone, Zoom and email with TechMart’s corporate office in State A, Zeta’s owner, Dan, signed a 15-year licensing agreement (“contract”). The contract gave Zeta the right to operate under the TechMart brand name, required Zeta to adopt TechMart’s business model, and required one of Zeta’s managers to train at TechMart’s headquarters in State A. The contract did not contain a forum selection clause. In the first three years of operation, Zeta made all royalty payments to TechMart in State A and regularly communicated with TechMart’s corporate office regarding compliance, marketing, and inventory systems. During this time, Dan never physically visited TechMart’s facility in State A and all meetings and communications between Dan and TechMart were done electronically between the two companies. After financial struggles, Zeta failed to make payments for twelve (12) consecutive months. TechMart terminated the contract and sued Dan personally in federal district court in State A for breach of contract and damages. Dan filed a motion to dismiss for lack of personal jurisdiction. Assume for the purposes of this question, the Federal Rules of Civil Procedure apply. How should the court rule on Dan’s Motion to Dismiss? Fully discuss and explain your answer.

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