Legal Question in Business Law in Arkansas

Re: contract

That depends on a number of variables. If you have a written contract with this business it may have a "forum selection clause." That is a clause which controls where any dispute over the contract must be brought. The same clause or other provision of the contract might also speak as to which state's law govern's the contract.

In the absence of a forum seletion clause general principals of personal jurisdiction applies. Personal jurisidiction is a legal doctrine which determines whether a state's courts have the power to compel you to attend and order you to pay your adversary money. A state has personal jurisdiction if, "traditional notions of fair play and substantial justice" support the excersie of power over you by that state's court. The court looks to see if you have sufficient minimum contacts with a particular state to see if it would be foreseeable to you that you could be hailed into court in that state. There are many factors to consider including but not limited to, how many times you have called, visited, emailed, telephoned, mailed, etc...into that state. Did the contract require performance in that state, whether the contract was negotiated or executed in that state, whether you own property in that state, and there are many many others. If the court finds that sufficient minimum contacts exist, then it can compel you to defend the case there. If not, then the plaintiff has to go to your state. If you are served with a complaint in another state, do not ignore it. Go and see an attorney as soon as possible to determine what should be done in your case. Each case is unique.