What is the significance of the case World-Wide Volkswagen Corp. v. Woodson?

The case World-Wide Volkswagen Corp. v. Woodson is significant because it clearly addressed the limits of personal jurisdiction, particularly in the context of sales that cross state lines. The Supreme Court ruled that merely placing a product into the "stream of commerce" does not automatically establish personal jurisdiction in every state where that product ends up.

In this case, the court determined that for a defendant to be subject to the jurisdiction of a state's courts, there needs to be more than just the expectation that a product might end up in that state. There must be some form of purposeful availment—meaning the defendant must have engaged in some conduct that would reasonably anticipate being brought into the forums' courts. This ruling set a precedent that underscored the necessity for a clear connection between the defendant, the forum state, and the action that led to the lawsuit, rather than leaving it to chance based on where a product might end up after being sold.

By clarifying that the mere act of placing a product into the stream of commerce is insufficient for establishing personal jurisdiction, the case laid important groundwork for understanding how jurisdiction operates in cases involving interstate commerce.