This section contains the nature of the case and procedural background.

P was involved in numerous business transactions with D. Goods manufactured by D were delivered in P's facility in Indiana. On August 23, 1973, D sent a letter from New Jersey advising P that it would be able to manufacture fiberglass panels in accordance with certain specified standards. The letter included the prices and expressly stated that the 'price quotation is based on orders of 75,000 sq. ft. or more (truckload quantities) freight prepaid. Order less than 75,000 sq. ft. add $.01/sq. ft., F.O.B. Lodi.' In November, P mailed two purchase orders to D's New Jersey office with 'F.O.B. Delvd.' notations in the upper right-hand corners. On January 16, 1974, D sent a letter from its New Jersey office informing P that it would be unable to provide the panels requested in the purchase orders. P sued D for breach of contract. D filed a motion to dismiss the complaint as the court lacked personal jurisdiction over D. The motion was denied. Eventually, D was permitted to appeal.

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