Ethics Case Hertz Corporation is incorporated in the state of Delaware and has its headquarters in the state of New Jersey. Melinda Friend, a California citizen, sued the Hertz Corporation in California state court seeking damages for Hertz’s alleged violation of California’s wage and hour laws. Hertz filed notice to

move the case from state court to U.S. district court, a federal court, asserting diversity of citizenship between the parties. Friend argued that because Hertz operated more than 270 rental car locations and had more than 2,000 employees in California, it was a citizen of California; thus, diversity of citizenship did not apply and the case could not be moved to federal court but should be decided by a California state court. Hertz Corporation v. Friend, 130 S.Ct. 1181, 2010 U.S. Lexis 1897 (Supreme Court of the United States, 2010)

1. What is diversity of citizenship?

2. Is Hertz Corporation a citizen of California and subject to suit in state court?

3. Was it ethical for Hertz to deny citizenship in California when it had such a large presence in California, with its 270 rental car locations and more than 2,000 employees there? action in federal court. This minimum amount was eliminated by the Federal Question Jurisdictional Amendment Act of 1980, Public Law 96–486.

4. The amount was raised to $75,000 by the 1996 Federal Courts Improvement Act. Title 28 U.S.C. Section 1332(a).

5. 952 F.Supp. 1119 (U.S. District Court, Western District of Pennsylvania).

6. 5 U.S.C. Sections 551-706.

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