Bento Cuisine is a lunch-cart business. It occupies a streetcorner in Texarkana, a city that straddles the border of Arkansasand Texas. Across the street—and across the state line, which runsdown the middle of the street—is Rico’s Tacos. The two businessescompete for customers. Recently, Bento has begun to suspect thatRico’s is engaging in competitive behavior that is illegal. Bento’smanager overheard several of Rico’s employees discussing thesecompetitive tactics while on a break at a nearby Starbucks. Bentofiles a lawsuit against Rico’s in a federal court based ondiversity jurisdiction. (See page 55.)
As discussed in this chapter, hearsay is literally what awitness says he
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