Business Law - Chapter 3 SB

Federal courts may have subject matter jurisdiction over a state motor vehicle tort claim if the parties to the lawsuit reside in two different states and the amount of the claim exceeds: _______.

$75,000

A Fortune 500 Company purposefully destroyed internal electronic communications prior to and during litigation. The judge issued a jury instruction at the end of the trial instructing the jury to: ________.

assume the destroyed documents were prejudicial to the company's case

The ______ is a document filed by the defendant in a lawsuit, whereas the ______ is filed by the plaintiff in response to a counterclaim.

answer; reply

Once a plaintiff files a case in the federal or state court system, the case remains in that system throughout the ______ process.

appellate

A(n) _________ clause is inserted into the contract to specify which law will be applied to resolve any disputes that arise under the contract.

choice-of-law

A(n) ______ specifies the factual and legal basis for the lawsuit and the relief the plaintiff seeks.

complaint

After failing to resolve a contract dispute with Big Corp., John decides to pursue a remedy in court. The first document John's attorney will file in court is called a(n): ________.

complaint

In a case involving ______ jurisdiction, either party has the ability to ensure that the case will be heard in the federal court system.

concurrent

When both the state and federal courts are empowered to hear a particular case, jurisdiction is said to be: _______.

concurrent

In addition to offering, in the answer, any affirmative defense to the claims made by a plaintiff in a complaint, a defendant may also assert its own legal claims against the plaintiff by way of a(n): ______.

counterclaim

The federal court system consists of trial courts, intermediate appellate courts and a(n): _______.

court of last resort

In a civil case, venue is appropriate where the: _______ (Check all that apply.)

dispute occurred defendant lives

Almost every case in the federal court system begins in United States ______ court.

district

In the federal court system, courts of original jurisdiction or federal trial courts are called ______ courts.

district

Parties to a civil lawsuit where injury is involved will often ask to see medical records, tax documents, wage statements and doctor's reports by serving a request for the production of ______.

documents

When negotiating a legal dispute informally fails, parties often must consult a(n) _______ to help navigate the legal issues and resolve the dispute.

lawyer

An affirmative defense is typically raised when the defendant agrees with the facts claimed by the plaintiff, but can offer a ______ reason for those facts.

legal

Courts allow either the ______ or the ________ of a corporation to receive service of process.

president agent

The rules of civil ______ govern civil case proceedings.

procedure

The rules of civil _______ govern civil case proceedings.

procedure

When a legal dispute involves the ownership of property, venue is appropriate where the: _______.

property is located

When a party decides to pursue a lawsuit, it is important that the complaint be drafted to include the facts that support the legal claim, the basis for the court's jurisdiction, and the request for: ________.

relief

A party who wishes to transfer a case from state to federal court must file a motion to: _______.

remove

A counterclaim filed by a defendant in a lawsuit requires that the plaintiff respond with a(n): _______.

reply

In total, the federal court system has how many mid-level appeals courts?

12

The federal court system derives its power from ______ of the United States Constitution.

Article III, Section 2

Which of the following is included with defendant's answer when he or she has a claim against the plaintiff?

Counterclaim

True or false: It is not possible to obtain in personam jurisdiction over a corporation because a corporation is not a person.

False

True or false: There are no limits on a court's ability to decide a case.

False

In the case __________, the U.S. Supreme Court applies a "nerve center" approach to jurisdictional questions based upon diversity-of-citizenship.

Hertz Corp. v Friend

______ courts of appeal, analogous to federal circuit courts of appeal, exist in approximately half the states.

Intermediate

______ statutes enable the court to serve defendants outside the state as long as the defendant has sufficient _______ contacts within the state and it seems fair to assert long-arm jurisdiction over him or her.

Long-arm Minimum contacts

In 2006, the Federal Rules of Civil ______ were amended to reflect changes in technology, and parties are now required to make provisions for disclosure or discovery of electronically stored information.

Procedure

______ of ______ occurs when the defendant is given a copy of the complaint and summons by a process server or by certified or ordinary mail.

Service process

A(n) ______ jury watches an actual trial and deliberates, giving the attorneys an indication of how the real jurors might be deliberating.

Shadow

What is the name for a jury which is comprised of individuals whose demographics match those of a trial's real jurors and that watches the actual trial?

Shadow jury

The structure of the state court systems is very similar to the federal court system and, therefore, state courts of last resort can be likened to the: _______.

U.S. Supreme Court

The _______ created a(n) _______ approach to determine the location of a corporation.

U.S. Supreme Court 'nerve center'

Complaints against corporations are generally served on

a registered agent

In addition to encouraging settlement, Judge Smith calls parties before the court for a pretrial conference to hammer out ______ details, such as how long the trial will take and how many witnesses the parties may call.

administrative

The party filing the appeal is generally referred to as the ______ and the party defending the appeal is generally called the ______.

appellant; appellee

Congress has created specialized courts to deal with such issues as:_______. (Check all that apply.)

bankruptcy international trade tax issues

A trial without a jury is called a: _______.

bench trial

In a(n) _______ trial, the _______ decides questions of fact.

bench, judge

Which side's attorney gets to have an opening statement in a civil trial?

both sides

Judges grant motions for a new trial only if they believe the jury's decision was _______, but they are not sure that the other side should necessarily have won the case.

clearly erroneaus

John files a breach of contract complaint in court and serves that complaint according to the local rules for service of process on Big Corp. Big Corp., however, does not file its answer within the time required by the rules. In this situation, the court can issue a ______ judgment against Big Corp.

default

During a(n) ______, a witness is questioned under oath and the questions and answers are recorded by a court reporter.

deposition

On her drive to work, Abigail is involved in an automobile accident. Later on, she is sued by the other driver and, during the litigation, she receives a summons from the other driver's attorney to appear and answer questions. Abigail is most likely being asked to appear for a(n)

deposition

Common discovery techniques include: _______. (Check all that apply.)

depositions interrogatories requests for documents

After the close of a plaintiff's case, the defendant often makes a motion for a(n)

directed verdict

A motion for a(n) _______ verdict, made by defense at the close of the plaintiff's case, asks a judge to enter verdict for the defendant before the defendant presents any evidence because there is no ______ basis for the plaintiff's claim.

directed, legal

After filing the initial pleadings and motions, the parties gather information from each other via: _______.

discovery

The purpose of a closing statement is to provide the jury with a summary of the: ________.

evidence

Theoretically, ________ make informed and impartial rulings because each party has an incentive to find all relevant evidence and make the strongest possible arguments on behalf of her position.

fact-finders

True or false: A peremptory challenge requires a party to give a reason for why a juror should be excluded.

false

True or false: Motions for a directed verdict are granted most of the time.

false

James claims a state statute preventing him from assembling in front of town hall to protest property taxes violates his first amendment rights to assemble. Although John can challenge this statute in state court, the federal courts can also hear the challenge because it raises a(n): _______.

federal question

Failure to comply with discovery requests made during litigation may result in: ________. (Check all that apply.)

fines sanctions

The purpose of cross-examination of witnesses is to point out: _______.

inconsistencies in testimony

A motion for a judgment notwithstanding the verdict filed by a party who loses at a trial asks the judge to _____.

issue a judgment contrary to the jury's verdict

At the end of the trial, the jury issues a verdict, and then the judge enters a final: _______.

judgment

If a trial is not going to be a bench trial, then the first step in the trial process is for opposing counsel to select a(n): _______.

jury

On appeal, an appeals court's job is to consider whether there were any errors of ______ during the trial.

law

A(n) ______ trial is organized by a jury selection firm and occurs before trial.

mock

A trial set up by a jury selection firm to test jurors' reactions to attorneys' arguments and witnesses' testimony is known as: _______.

mock trail

Abigail, the plaintiff in a breach of contract case, was disappointed when the jury issued a verdict in favor of the defendant. Abigail's attorney, however, was convinced the jury did not properly apply the law and asked the judge to issue a judgment in favor of Abigail. The attorney accomplished this by filing a(n): _______.

motion for judgment notwithstanding the verdict

After Abigail lost her breach of contract trial, she discovered that the defendant had lied on the witness stand. Her attorney can use this discovery to support a motion for a

new trial

In order to appeal a trial court judgment, the losing party must file a ______ of appeal.

notice

The United States Constitution does not require specific means of service, but it does require service that is reasonably calculated to provide: _______.

notice

The intermediate appellate courts in the federal system are identified by: _______.

numbered circuits

A ______ challenge allows a party to challenge potential jurors without giving a reason.

peremptory

The first formal stage of a lawsuit is the ______ stage.

pleading

A(n) ________ conference is an informal meeting of the judge and attorneys that occurs before trial. During this conference, the parties try to narrow the legal and factual issues and possibly settle the case.

pretrail

If an appellate court decides that the judgment of the lower court was wrong, the appellate court can ______ the judgment.

reverse

When John realizes he is about to be sued for breach of his employment contract, he deletes all his emails, both private and employment-related. John is worried that his employer may see emails to a competitor sharing trade secrets. Under the rules of civil procedure, the court may later impose ______ on John for this behavior.

sanctions

A defendant in a civil case need not present any evidence because the plaintiff bears: _______.

the burden of proof

Appeals court justices may reverse a trial court decision if: _______.

the trial judge admitted hearsay evidence that affected the case

When a defendant receives a copy of a summons and complaint, a court has ______ over that defendant.

jurisdiction

The ______ initially determines the venue of a case when it is filed in court.

plaintiff

The U.S district courts are courts of original: _______.

jurisdiction

Unlike the legal systems in other countries, the United States embraces a litigation system that relies on a neutral body to hear opposing sides of a case and come to a conclusion in favor of one party. This system is known as a(n) ______ system.

adversarial

The relationship between a plaintiff and a defendant in litigation that satisfies the case or controversy requirement must be ______.

adverse

If the defendant plans to raise a(n) ________, he must raise it in his answer to give the plaintiff adequate _______.

affirmative defense notice

When a defendant files an answer to a complaint, that answer typically includes any ______ ______ being raised by the defendant.

affirmative defenses

In order to avoid a default judgment, a defendant in a lawsuit must file a(n) ______ within a certain period of time after service of process.

answer

In the United States, each state has its own court system, but there is also a(n) ______ court system.

federal

The _______ Rules of Civil Procedure govern how cases are run in the federal district courts.

federal

Intermediate appellate courts in the various states are similar to the: ________.

federal circuit courts of appeal

The United States Supreme Court is the court of: _______. (Check all that apply)

final appellate court last resort highest authority

In a(n) _________ clause, the parties specify which court would hear a dispute over an alleged breach of the contract.

forum-selection

To minimize extra costs associated with future litigation, many businesses will include in their contracts a(n) _______ clause, a(n) _______ clause, or both.

forum-selection choice-of-law

Venue is a matter of ________ which is determined by each state's statutes.

geographic location

The circuit court of appeals that is the appropriate court for your appeal from the trial court depends on: _______.

geography

The case or controversy requirement ensures that courts are not rendering decisions in disputes that are merely

hypothetical

To uncover the basic facts surrounding a lawsuit, a defendant and plaintiff serve a written set of ______ on each other.

interrogatories

Discretion to grant a motion to change venue rests with the: ______.

judge

If the plaintiff in a breach of contract case believes that the complaint and answer, taken together, justify judgment in his favor, the plaintiff may file a motion for: _______.

judgment on the pleadings

State court systems, like the federal court system, have courts of both general and ______ jurisdiction.

limited

State long-arm statutes allow for service of process on defendants who: _______.

live outside the state

James brought an action against Sam two years after Sam had corrected his faulty work under a service contract. The court dismissed the action because the issue was: _______.

moot

A formal request for a court to grant some relief during the litigation process, for example, to dismiss a case early, is called a

motion

A(n) _______ is a request by a party for the court to do something.

motion

If the location of a case needs to be changed because of heightened publicity surrounding the case, this can be accomplished by filing a ______ to change venue.

motion

A demurrer is also known as a(n) ______ to ______.

motion dismiss

In the event a legal dispute begins to brew between two small business owners, the most common first step in resolving that dispute is to: ________.

negotiate

The U.S. Supreme Court has ______ justices who are appointed for life.

nine

Courts of ________ jurisdiction are courts where evidence is presented and witnesses testify.

original

A court may exercise in rem jurisdiction over an out-of-state defendant who ______ within the state boundaries.

owns property

A court may exercise in rem jurisdiction over an out-of-state defendant's property in order to

pay property taxes

If a state lacks an intermediate court of appeal, the trial court appeals to the state's court of last ______ or the Supreme Court.

resort

A case is ______ if a judge's decision is capable of affecting the parties immediately.

ripe

When a defendant is ______ with a complaint, it allows the court to assert personal, or in personam, jurisdiction over that defendant.

served

The procedure by which courts present complaint and summons documents to defendants is known as _____.

service of process

State courts that cannot award large damage amounts are typically called ______ courts.

small claims

Many jurisdictions have:_______. (Check all that apply.)

small claims courts probate courts domestic relations courts

A party who is personally affected by another's failure to satisfy a legal obligation generally has ______ to pursue an action in court.

standing

A person who has the legal right to bring an action in court has _______ to sue.

standing

In order for a court to exercise authority over a particular dispute, there must be an actual case or controversy, the case must be ripe for resolution, and the parties must have ______ to bring the case.

standing

The document that puts the defendant on notice of a complaint against them and explains how to respond is called a(n)

summons

The document that tells the defendant to respond to a complaint within a certain period of time is called the ______.

summons

The highest court in most state court systems is called the ______ court.

supreme

One of the main functions of discovery is fact gathering; this process prevents ______ at trial.

surprises

John Jones, who owns a sole proprietorship, files a breach of contract lawsuit against a multi-million dollar corporation. Critics of the United States adversarial system of justice would suggest that the clear advantage in this lawsuit belongs to: _______.

the corporation

Generally, a state court's power to exercise in personam jurisdiction extends to: _______.

the edge of a state's border

In rem jurisdiction is jurisdiction over an individual through: ______.

the thing

______ courts, or courts of original jurisdiction, have the power to hear and decide cases when they first enter the legal system.

trial

Venue is appropriate: _______.

where the defendant resides

If a defendant fails to raise an affirmative defense in the answer, the judge: _______.

will likely not allow him to raise it during the trial

When the issue on appeal in a case is purely a state law issue, the U.S. Supreme Court: _______.

will not hear the case