Question

Mountain Stuff is a Colorado Corporation selling mountain climbing equipment. They maintain a web site that provides information about their products as well as general information about mountain climbing. A consumer cannot purchase equipment directly from the site but can request order forms to purchase equipment directly from Mountain Stuff. Mountain Stuff maintains no offices outside of Colorado and no products are sold by retailers outside of Colorado. On the web sites general information portion of the site they print an article accusing Utah Mountain Sports, a competitor, of intentionally manufacturing and selling defective and sub standard equipment following an accident by climbers using Utah Mountain Sports equipment. There is no direct proof referenced in the article and in fact the article is incorrect. Never-the-less, articles are written referencing the Mountain Stuff statements and Utah Mountain Sports has seen an otherwise unexplained 10% decline in their typically $1 million a month sales in each of the three months since the article was published. If Utah Mountain Sports sues in federal court in Utah, will the court be able to find personal and subject matter jurisdiction under these circumstances?

Answer

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