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of <h1>Territorial nexus doctrine allows states to regulate activities outside their borders with genuine connection and relevant liabilities</h1> The doctrine of territorial nexus permits state legislation to affect persons residing outside the state if a real connection exists between the state and the activities being regulated. The Supreme Court established two essential elements: the connection must be genuine, not illusory, and the imposed liabilities must be relevant to that connection. This principle applies equally to civil and criminal statutes, allowing sovereign states to enact laws with extraterritorial effects under specific conditions, overcoming traditional prohibitions against extraterritorial legislation.
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