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· Hightech.com, a U.S. company sells equipments essential to repair computers on its web site hosted in its server at its company headquarters at Ontario, CA. In order to boost its sales, the company recently decided to target at Chinese customers who are interested in increasing productivity. Thus, the company advertised in many Chinese web sites where their target customers are likely to frequent. As part of sales promotion, the web banner showed “20% limited-time discount. A customer in China saw the ad banner and went to Hightech.com’s site by clicking the link and placed an order of 30 laser cleaners with credit card. One month after the order was placed, the shipment arrived but some of laser cleaners were missing. The customer contacted the company but Hightech.com refused to honor the claim. Therefore, the Chinese customer sued Hightech.com in Chinese court. However, Hightech.com argued that they are not liable because nothing like that happened before and that the Chinese customer should contact a freight forwarder. Further Hightech.com argued that the case should be handled in a California court since company is located in California. In your opinion, which country should have jurisdiction and why? Provide your rationale.
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