Reference no: EM131768474

Question: The Buena Banana Co., a U.S. corporation, has several subsidiaries in Central America that purchase bananas from local producers. Buena then sells the bananas under its trademark to wholesalers in the United States. The Compañia del Plátano Puro, SA (Puro), an Argentine corporation that markets bananas throughout South America, recently set up several subsidiaries in Central America in direct competition with those of Buena. Puro's subsidiaries have offered the Central American producers an arrangement that is remarkably generous by international standards. It will give them a guaranteed 10-year contract to purchase their entire production at 10 percent above world market prices. (Buena, by comparison, has never agreed to a long-term contract and only pays the going world prices.) Puro's sales are presently limited to South America, but it hopes to begin selling throughout the United States soon. In preparation for this, it has set up a small branch in Miami, Florida, and it is testing the local market with sales to several upscale market chains. In the meantime, Buena has brought suit against Puro in a U.S. federal court in Miami. It claims that Puro is attempting to monopolize the banana trade in Central America (there is only one other large banana-exporting company in competition with Buena and Puro). Buena claims that Puro's activities in Central America will force Buena to raise its prices and that this will affect American consumers. Does the U.S. court have jurisdiction to hear the case? Discuss.