Business Law - Chapter 2

Venue has to do with where the most appropriate physical location to file a lawsuit exists. True or False

True

One downside of arbitration is that if the parties are not satisfied with the decision, they: a. can sue for damages separately b. cannot appeal the decision c. can still mediate the issue d. can still litigate the issue

b. cannot appeal the decision

Any court can exercise jurisdiction over any property, no matter where it is located. True or False

False

Discovery includes the process of serving a summons, and a copy of a complaint on a defendant. True or False

False

If a party is unhappy about the decision of their case in their state supreme court, and it was a case involving state law, they can appeal it to the Federal Supreme Court. True or False

False

Interrogatories consist of oral testimony given by a party under oath. True or False

False

Judicial Review is the process through which Congress approves or rejects judicial appointments. True or False

False

Jurisdiction refers to the ability of a citizen to bring a case before a court. True of False

False

Subject matter jurisdiction refers to whether a court is located in the area in which the plaintiff or defendant live. True or False

False

A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief, as well as the jurisdiction and remedy. True or False

True

A corporation is subject to jurisdiction only in states where it does such substantial and continuous business, that it is "at home" in that state. True or False

True

A motion for summary judgement asserts that the plaintiff failed to state a claim for which the court can grant relief, and the case should have a judgement without proceeding to a trial. True or False

True

An appellate court can only challenge a trial court's finding of fact if the finding is clearly erroneous. True or False

True

An electronic court filing system allows parties to file litigation-related documents via electronic means in most states. True or False

True

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a binding decision for the parties. True or False

True

Failing to strictly follow the procedural rules and standards for determining disputes in courts is likely to affect the outcome in a particular case. True or False

True

For purposes of diversity jurisdiction, a corporation can be considered a citizen of the state where their principal place of business is located. True or False

True

In a case based on diversity of citizenship involving individuals, a federal court will apply the relevant state law. True or False

True

In a case based on diversity of citizenship involving individuals, a federal court will apply the relevant state law. True or False

True

In a case involving Internet transactions, jurisdiction can be met by a state through minimum contacts if the company conducts substantial business in that jurisdiction through online contracts or sales. True or False

True

Jurors must decide a case based only on the information that they learn during the trial. True or False

True

Most states either require or encourage parties in a lawsuit to undertake ADR beforehand. True or False

True

The landmark case of Marbury v. Madison set the decision and precedent for judicial review. True or False

True

Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants based on their activities within the state. True or False

True

When concurrent jurisdiction exists, the parties may choose to bring the case in state or federal court True or False

True

______ refers to the number of procedural devices to obtain information and gather evidence about the case from the other party or from third parties before the trial begins. a. Discovery b. Motion to dismiss c. Motion for submission d. Venue

a. Discovery

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss could attempt to resolve their dispute through: a. negotiation b. mediation c. arbitration d. litigation

a. negotiation

The courts have developed a standard, called a _________ standard, for determining when the exercise of jurisdiction over an out-of-state defendant is proper. a. sliding scale b. minimum contacts c. long-arm d. value based

a. sliding scale

One party wants to file a suit against another. For a court to hear the case, a. the court must have jurisdiction over the parties, as well as the subject matter at issue b. both parties must consent to the lawsuit c. the parties must have diversity of citizenship, and a claim of more than $75,000 d. the parties must both own property within the state

a. the court must have jurisdiction over the parties, as well as the subject matter at issue

Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing a. under the minimum contacts test b. only if Beef Packing files the suit c. in no circumstances d. on the basis of a federal question

a. under the minimum contacts test

Jason, a citizen of Kansas, wants to file a suit against Lora, a citizen of Michigan. Their diversity of citizenship may be a basis for: a. Kansas state court to have jurisdiction b. a federal court to exercise jurisdicition c. any court to exercise jurisdiction d. no court to exercise jurisdiction

b. a federal court to exercise jurisdiction

Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online. This is a. online dispute resolution. b. an electronic court filing system. c. electronic discovery. d. a cyber court.

b. an electronic court filing system

Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is a. rendition b. arbitration c. conciliation d. intervention

b. arbitration

Mandatory _______ in employee contracts have been found to be generally acceptable and legal. a. negotiation clauses b. arbitration clauses c. mediation clauses d. reprimand procedures

b. arbitration clauses

Bob wants to sue XYZ corporations, his employer, for violating his civil rights. He states their employer procedures do not apply equal rights. What court would Bob bring suit? a. any court he wishes b. federal court c. probate court d. state court

b. federal court

Analytica LLC files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees' student loans. The process by which the court decides this issue is a. unconstitutional. b. judicial review. c. voir dire. d. the rule of four.

b. judicial review

Jill and Kane meet with their attorneys to try to resolve a dispute. A neutral third party works with both sides and proposes a solution but does not make a decision resolving the matter. a. arbitration b. mediation c. negotiation d. none of the choices

b. mediation

A person must have _________, or a sufficient "stake" in the matter to justify seeking relief through the court system. a. jurisdiction b. standing to sue c. diversity of citizenship d. venue

b. standing to sue

A _______ is an order issued by the Supreme Court to a lower court requiring that court to send the record of the case for review. a. motion for summary judgement b. writ of certiorari c. a rule of four d. motion for dismissal

b. writ of certiorari

Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has a. in personam jurisdiction b. no jurisdiction c. in rem jurisdiction d. federal jurisdiction

c. in rem jurisdiction

Quarry Mining Inc. and Riverside Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with Quarry's representative to discuss the matter without Riverside's representative being present. Is this normally allowed during arbitration? a. if the matter is serious enough in nature b. yes c. only if there is a restraining order d. no

d. no

_____ may be best suited for resolving small to medium sized business liability claims, which may not be worth the expense of litigation or traditional ADR. a. arbitration b. mediation c. closed negotiation d. online dispute resolution

d. online dispute resolution

A _______ consists of a document that notifies a defendant that a legal action has been commenced against them, and that they must appear in court to answer the compliant. a. motion to dismiss b. service-of-process c. motion for summary judgement d. summons

d. summons

A judicial decision on the constitutionality of an executive order that limits certain state actions is a. beyond the jurisdiction of the courts b. a summary judgment c. a question of fact d. the power of judicial review

d. the power of judicial review

Numerous federal courts now hold ______ (another type of ADR), in which the parties present their arguments and evidence, and they jury renders a verdict. a. negotiations b. mini trials c. summary jury trials d. early neutral case evaluation

summary jury trials