Answer to Question 1
In the United States, individual states have laws that can create personal jurisdiction for their courts. The details of these laws, called long-arm statutes, vary from state to state, but generally create personal jurisdiction over nonresidents who transact business or commit tortious acts in the state.
For example, suppose that an Arizona resident drives recklessly while in California and, as a result, causes a collision with another vehicle that is driven by a California resident. Due to the drivers tortious behavior in the state of California, the Arizona resident can expect to be called into a California court. In other words, Californias long-arm statute gives its courts personal jurisdiction over the matter.
Answer to Question 2
Personal jurisdiction is, in general, determined by the residence of the parties. A court has personal jurisdiction over a case if the defendant is a resident of the state in which the court is located. In such cases, the determination of personal jurisdiction is straightforward. However, an out-of-state person or corporation can also voluntarily submit to the jurisdiction of a particular state court by agreeing to do so in writing or by taking certain actions in the state.
One of the most common ways that people voluntarily submit to a jurisdiction is by signing a contract that includes a statement, known as a forum selection clause, that the contract will be enforced according to the laws of a particular state. That state then has personal jurisdiction over the parties who signed the contract regarding any enforcement issue that arises from the terms of that contract.