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Chapter : Appendix: Summarized Cases Spotlight Case 2.1 Gucci America, Inc. v. Wang Huoqing Book Title: The Legal Environment Today Printed By: abdallah al balushi ([email protected]) © 2020 Cengage Learning, Inc., Cengage Learning, Inc.

Spotlight Case 2.1 Gucci America, Inc. v. Wang Huoqing United States District Court, Northern District of California, 2011 WL 30972 (2011).

Facts

Wang Huoqing, a resident of the People’s Republic of China, operates numerous websites. When Gucci discovered that Huoqing’s websites were selling counterfeit goods—products that carried Gucci’s trademarks but were not genuine Gucci articles—it hired a private investigator in San Jose, California, to buy goods from the websites. The investigator purchased a wallet that was labeled Gucci but was counterfeit.

Gucci filed a trademark infringement lawsuit against Huoqing in a federal district court in California seeking damages and an injunction to prevent further infringement. Huoqing was notified of the lawsuit via e-mail but did not appear in court. Gucci asked the court to enter a default judgment—that is, a judgment entered when the defendant fails to appear. The court first had to determine whether it had personal jurisdiction over Huoqing based on the Internet sales.

Issue

Could a U.S. federal court exercise personal jurisdiction over a resident of China whose only contact with the United States was through an interactive website that advertised and sold counterfeit goods?

Decision

Yes. The U.S. District Court for the Northern District of California held that it had personal jurisdiction over the foreign defendant, Huoqing. The court entered a default judgment against Huoqing and granted Gucci an injunction.

Reason

The court reasoned that the due process clause allows a federal court to exercise jurisdiction over a defendant who has had sufficient minimum contacts with the court’s forum

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—the place where the court exercises jurisdiction. Specifically, jurisdiction exists when

1. the nonresident defendant engages in some act or transaction with the forum “by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;

2. the claim must be one which arises out of or results from the defendant’s forum- related activities; and

3. exercise of jurisdiction must be reasonable.”

To determine whether Huoqing had purposefully conducted business activities in California, the court used a sliding-scale analysis. Under this analysis, passive websites do not create sufficient contacts for such a finding, but interactive sites may do so. Huoqing’s websites were fully interactive. In addition, Gucci presented evidence that Huoqing had advertised and sold the counterfeited goods within the court’s district, and that he had made one actual sale within the district—the sale to Gucci’s private investigator.

Critical Thinking

What If the Facts Were Different? Suppose that Gucci had not presented evidence that Huoqing made one actual sale through his website to a resident (the private investigator) of the court’s district. Would the court still have found that it had personal jurisdiction over Huoqing? Why or why not?

Legal Environment Is it relevant to the analysis of jurisdiction that Gucci America’s principal place of business is in New York rather than California? Explain.

Chapter : Appendix: Summarized Cases Spotlight Case 2.1 Gucci America, Inc. v. Wang Huoqing Book Title: The Legal Environment Today Printed By: abdallah al balushi ([email protected]) © 2020 Cengage Learning, Inc., Cengage Learning, Inc.

© 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder.

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Unit VII Web Assignment

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QUESTION 1

Since 2000 forest fires and extended drought have significantly impacted forests in which country?

Australia Canada Congo United States

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QUESTION 2

Which country in the world has greatest percentage of forest? Canada Russia United States Brazil

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QUESTION 3

Why does the Congo region in Africa still have significant forest cover? Strict conservation laws. Lack of infrastructure and political instability. Protection by the United Nations. Fierce lowland gorillas.

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QUESTION 4

Where in Europe is forest loss the greatest?

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Where in Europe is forest loss the greatest? Sweden Italy

Spain France

QUESTION 5

What region of South America is experiencing the greatest amount of deforestation? Argentina Amazon Basin Colombia Peru

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QUESTION 6

Which region is losing an estimated 10 million acres of forest yearly? South America North America Asia Australia

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QUESTION 7

What two temperate areas of the world are seeing forest regrowth? Australia and North America Europe and Asia Australia and Asia North America and Europe

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QUESTION 8

How many acres of forest are left in the world? 100 million 1 billion 9.9 billion 17 billion

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QUESTION 9

What is the major natural factor that is causing deforestation in western North America? Fire Logging Mountain pine beetle infestation

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Excess rainfall

QUESTION 10

Despite having only 5% of the world's forest cover, which nation is effectively fighting desert encroachment by planting huge numbers of trees?

Kazakhstan Mongolia India China

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QUESTION 11

Using information from the New York Times Changing Forest website, explain how forests are impacted by climate change in various places around the world and how forests themselves may offset aspects of climate change. Be specific in your examples, describing what is happening and where. Your response should be at least 100 words in length.

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