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Anonymous
timer Asked: Mar 6th, 2018
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Questions

A. Can Huawei obtain personal jurisdiction over ALTEL and Flag in the State Circuit Court located in

Nashville?

B. If so, would ALTEL’s lawyer be able to get the case moved to the Federal District Court located in

Nashville? If so, on what theory? Why would she want to do that?

C. Does Huawei have a cause of action under the Common Law for Trade Libel/Trade

Disparagement? What are the issues?

D. Does Huawei have a cause of action under the Alabama Deceptive Trade Practices Act?

E. If so, why would a court (state or federal) apply the law of Alabama to a cause of action filed in

Tennessee?

F.

Would there be a cause of action under the Lanham Act?

G. What are your thoughts about the

ethics

of the marketing campaign?

LAW 2221 2018 6 March 2018 PROBLEM 6 Alabama Telecommunications Company (ALTEL) is a telecommunications equipment manufacturer located in Huntsville. Its CEO is David Flag. ALATEL’s primary area of service i.e. where they sell most of their products and provide customer service for their products is in the Southeast which includes Alabama, Georgia, and Mississippi. Flag has been advised by his marketing people that at an increasing rate, his biggest competitor is Huawei Technologies Co., Ltd., a multinational networking and telecommunications equipment and service company headquartered in Shenzhen, Guandong Province, China. Shenzhen is an ever expanding area of technical and industrial development in China that is north of the Hong Kong Special Administrative Region.1 Huawei has a research and sales office in Nashville. Huawei was founded in 1987 by a former engineer in the Peoples Liberation Army. Since that time, it has grown exponentially to a point where, in 2014, it invested $6.4 billion in R&D. Needless to say, David Flag is more than quite concerned about the sheer economic power of Huawei. He, therefore, consults with you, his VP for Marketing, and suggests that ALTEL is in a competitive “war” with Huawei and that a “battle” strategy to try to offset Huawei’s power and its growing economic presence.2 Huawei also has an R&D facility at the Brookley complex in Mobile because of the Port of Mobile’s ever expanding volume of Chinese vessels and Chinese products coming through that Port. It hires its “STEM” types of people for that facility from the University of South Alabama. Its sales personnel are already calling on potential customers in Alabama. You and he, therefore, developed the following counterpunch to Huawei: 1. The marketing campaign stresses that ALTEL’s products are “made in America” with easy access to service. 2. The campaign also consists of advertising representations made on television, the internet, social media, and hard copy adds placed in key newspapers in Huntsville, Birmingham, Mobile, Atlanta, Miami, Gainesville, Tampa, Jacksonville, and Orlando. 3. Those representations contain the following additional assertions: that Huawei’s products are inferior to its products; that the Chinese government uses Huawei’s products to commit industrial espionage by putting softwear into its products that allow this to be done; that, since 1 My Hong Kong small equipment manufacturing client had its manufacturing operations in Shenzhen. See, Albert Bandura, Selective Moral Disengagement in the Exercise of Moral Agency, 31 J. MORAL EDU. 101 (2002); Albert Bandura, et al., Corporate Transgressions Through Moral Disengagement, 6 J. HUMAN VALUES 1 (2000); Albert Bandura, et al, Mechanisms of Moral Disengagement in the Exercise of Moral Agency, 71 J. PERSONALITY AND SOCIAL PSYCHO. 364 (1996). 2 4. 5. 6. 7. Huawei was started by an engineer who was a member of the Peoples’ Liberation Army under former Chairman Mao, it is really being run by the Chinese government; that Huawei’s CEO is a member of the Chinese Communist Party. These adds were run in the various media in the above cities. Huawei contacts counsel in Mobile who sends your company and Flag a cease and desist letter along with a request for retractions to be put in each media outlet in which the adds ran. Flag refused to stop the adds and refused to publish a retraction. Huawei has now filed suit in the State Circuit Court located in Nashville. It has sued ALTEL and Flag, personally, alleging claims of Trade Libel/Trade disparagement. Questions (Be Prepared to Discuss in Class) A. Can Huawei obtain personal jurisdiction over ALTEL and Flag in the State Circuit Court located in Nashville? B. If so, would ALTEL’s lawyer be able to get the case moved to the Federal District Court located in Nashville? If so, on what theory? Why would she want to do that? C. Does Huawei have a cause of action under the Common Law for Trade Libel/Trade Disparagement? What are the issues? D. Does Huawei have a cause of action under the Alabama Deceptive Trade Practices Act? E. If so, why would a court (state or federal) apply the law of Alabama to a cause of action filed in Tennessee? F. Would there be a cause of action under the Lanham Act? G. What are your thoughts about the ethics of the marketing campaign? Copyright 2018 Orrin K. Ames III

Tutor Answer

Jkennish
School: University of Maryland

Hey as promised find the attached file. Thanks and goodbye.You can now go ahead and complete the payment, some tips

Personal jurisdiction
Huawei can obtain personal jurisdiction over ALTEL and Flag in the State Circuit Court
in Nashville only if it meets the regulations under the law. Personal jurisdiction is obtained after
the defendant had been previously served with court papers. Huawei contacted counsel in Mobile
warning ALTEL over its action. Mobile is however in the same state. The warning came right
before Huawei filed for a suit action against ALTEL. Personal jurisdiction is also determined
when the defendant made contact at the state. Since Flag and the company are not physically
available in Nashville, Huawei can obtain jurisdiction if they made contact even through
telephone or mail. ALTEL applied media campaigns in advertising which has the capability if
reaching a wider area. Therefore, Huawei serving ALTEL with cease letters and the media
established a contact which allows for Huawei to obtain jurisdiction over ALTEL (Andrews &
Newman, 2013).
Moving a case to the Federal District Court
ALTEL’s lawyer...

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