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The Mighty Motor Car Co. and the Novel Automobile Corp. manufacture cars and trucks in Country J. They recently entered into a noncompetition agreement with the approval of the Country J Ministry of Trade. The agreement provides (a) that Mighty will sell its vehicles in the United States and that Novel will not and (b) that Novel will sell its vehicles in the EU and that Mighty will not. Since the signing of this agreement, the Foreign Car and Truck Import Co., a U.S. importer of Novel cars and light trucks, is unable to obtain vehicles to import to the United States. As a consequence, it has brought suit against Novel in a U.S. court alleging that the agreement between Mighty and Novel violated the U.S. Sherman Antitrust Act. Novel has asked the court to dismiss the case for lack of subject-matter jurisdiction. Should it do so? Discuss.
