Question: Eye Co., a shipping company headquartered and incorporated in State I, signed a contract with Kay Co., a company headquartered and incorporated in State K, to transport goods for Kay Co. from State K to State L. No provisions were made in the contract about where disputes would be settled or what law would be used to resolve them. As Eye Co.'s ship delivering the goods was entering the harbor of the capital city of State L, the ship blew up, destroying all of Kay Co.'s goods. Kay Co. brought suit in State L. Eye Co. now argues that the court does not have jurisdiction and that State L law should not be used to decide the dispute.
(a) Does the court have jurisdiction?
(b) What law should the court apply? Discuss.