What is the significance of the "stream of commerce" theory?

The "stream of commerce" theory is significant because it addresses how and when a court can exercise personal jurisdiction over a defendant based on their engagement with interstate commerce, particularly in relation to products. This theory posits that a manufacturer or distributor can be subject to jurisdiction in a state if they have placed a product into the stream of commerce with the expectation that it will be purchased and used in that state. This concept is foundational in cases involving product liability, as it allows for the possibility of holding entities accountable in jurisdictions where their products have a significant impact, even if the company does not have a physical presence there.

This theory supports broader jurisdictional reach, emphasizing that the act of distributing goods across state lines can create a connection with various states. Thus, it directly relates to product distribution and the implications for jurisdiction, making option B the most accurate choice.