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1. Running head: 3.5 BUSINESS ETHICS
3.5 Business Ethics
Edward Charfauros
Business Law BUS/415
December 6, 2011
Moanikeala Colon
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2. 3.5 BUSINESS ETHICS
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3.5 Business Ethics
The National Enquirer, Inc., is a Florida corporation with its principal place of business
in Florida. It publishes the National Enquirer, a national weekly newspaper with a total
circulation of more than 5 million copies. About 600,000 copies, almost twice the level in the
next highest state, are sold in California. The National Enquirer published an article about
Shirley Jones, an entertainer. Jones, a California resident, filed a lawsuit in California state court
against the National Enquirer and its president, who was a resident of Florida. The California
lawsuit sought damages for alleged defamation, invasion of privacy, and intentional infliction of
emotional distress. Calder v. Jones, 465 U.S.783, 104 S.Ct. 1482, 79 L.Ed.2d 804, Web 1984
U.S. Lexis 4 (Supreme Court of the United States)
1. What kind of paper is the National Enquirer?
National Enquirer published by American Media, Inc (AMI) is a national weekly
American supermarket newspaper tabloid commonly known as the Enquirer, which is also
known as a magazine that provides celebrity news and gossip.
2. Was it ethical for the National Enquirer to try to avoid suit in California?
Avoiding suit in California is ethical by the National Enquirer under diversity of
citizenship so avoiding the suit in California can be done between the plaintiff California resident
Shirley Jones and the defendant Florida resident the National Enquirer. The National Enquirer
wants to settle the suit within Florida because the National Enquirer, the reporter, and the CEO
reside in Florida therefore can be heard by federal district court.
3. Are the defendants subject to suit in California? Why or why not?
The defendant National Enquirer, Inc. and the plaintiff Shirley Jones reside within
different states, but the courts can determine the lawsuit with Quisi in rem jurisdiction aside from

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diversity of citizenship. Through Quisi in rem jurisdiction Shirley Jones (the plaintiff) can
obtain judgment against the National Enquirer within the state of California by trying to collect
judgment through attaching the National Enquirer’s property located in California (600,000
copies). Generally the minimum contacts requirement means the National Enquirer (the
defendant) has taken actions intentionally towards the forum state (California).
Furthermore, the National Enquirer brings its goods into California, sells its property in
California through its national weekly tabloid newspaper of 600,000 copies, and circulates the
National Enquirer newspaper in California (which is the second highest state of National
Enquirer customers). Thereby, the National Enquirer as the defendant and its president remain
subject to the California lawsuit though the National Enquirer’s principal location of business
remains in Florida.

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Reference
H. Cheeseman (2010). The Legal Environment of Business and Online Commerce, 6th Edition.
ISBN: 9780136085683. Copyright © 2010 Pearson Education, Inc.