Chapter 2

A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has a. minimum contacts with the state. b. maximum contacts with the state. c. medium contacts with the state. d. no contacts with the state.

A

As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as a. judicial review. b. jurisdiction. c. venue. d. early neutral case evaluation.

A

Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that a. federal and state courts have concurrent jurisdiction. b. federal courts have exclusive jurisdiction. c. no court has jurisdiction. d. state courts have exclusive jurisdiction.

A

HoneyBee Foods, Inc., in Illinois, and Jelly Roll Pastries, in Kentucky consent to have their dispute resolved in arbitration according to the law of Illinois. This is a ground for a court to a. compel arbitration. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside any award.

A

Orson files a suit against Portia. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who imposes a resolution on the parties. This is a. arbitration. b. mediation. c. negotiation. d. not a legitimate form of dispute resolution.

A

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts a. not at all. b. until the ODR service has issued a decision. c. with respect to any dispute arising between them. d. with respect to this dispute only.

A

Arnold loses his suit against Buffy in a Colorado state trial court. Arnold ap-peals to a state intermediate court of appeals and loses again. Arnold would appeal next to a. a U.S. district court. b. the Colorado Supreme Court. c. the United States Supreme Court. d. the U.S. Court of Appeals for the Ninth Circuit.

B

Lewis wants to file a suit against Mikayla. Before any court can hear the case a. the parties to the dispute must agree. b. the court must have jurisdiction. c. the court must issue a deposition. d. the parties must own property.

B

Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is a. arbitration. b. mediation. c. negotiation. d. not a legitimate form of dispute resolution.

B

Lucille files a suit against Murray. They meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is a. a mini-trial. b. a summary jury trial. c. early neutral case evaluation. d. not a legitimate form of dispute resolution.

B

Marcus files a suit against Naomi in an Ohio state court. Naomi's only connec-tion to Ohio is an ad on the Web originating in Pennsylvania. For Ohio to exercise jurisdiction, the issue is whether Naomi, through her ad, has a. a commercial cyber presence in Ohio. b. conducted substantial business with Ohio residents. c. claimed to be a resident of Ohio. d. solicited virtual business in Ohio.

B

The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of a. appeal. b. certiorari. c. jurisdiction. d. summons.

B

Bean House Coffees and Java Distributors, Inc., have a long-standing business relationship that they would like to continue. For this reason, they may prefer to settle any dispute between them through mediation because a. the case will be heard by a mini-jury. b. the dispute will eventually go to trial. c. the process is not adversarial. d. the resolution of the dispute will be decided an expert.

C

Transcontinental Tours, a U.S. firm, and Victoria Hotels, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Transcontinental and Victoria over a dispute involving this contract may occur in a. Canada only. b. Canada or the United States, but not both. c. Canada, the United States, or both. d. the United States only.

C

Delia files a suit against Eduardo in a Florida state court over the ownership of a boat docked in a Florida harbor. Both Delia and Eduardo are residents of Georgia. Eduardo could ask for a change of venue on the ground that Georgia a. has a sufficient stake in the matter. b. has jurisdiction. c. has sufficient minimum contacts with the parties. d. is a more convenient location to hold the trial.

D

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely a. compel arbitration. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside any award

D

Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to a. none of the choices. b. review the merits of the dispute. c. review the sufficiency of the evidence. d. set aside the award.

D

The Montana Supreme Court rules against Natural Grocery Mart in a case against One Stop 2 Shop Stores, Inc. Natural Grocery files an appeal with the United States Supreme Court. The Court does not hear the case. This a. is a decision on the merits that has value as a precedent. b. indicates agreement with the Montana court's decision. c. means nothing. d. means that the Montana court's decision is the law in Montana.

D

The least expensive method of resolving a dispute between Ronald and Sharon may be a. arbitration because the case will be heard by a mini-jury. b. litigation because each party will pay its own legal fees. c. mediation because the dispute will be resolved by a non-expert. d. negotiation because no third parties are needed.

D

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may a. monitor any arbitration until it concludes. b. order an arbitrator to rule in a particular way. c. order a party to bring the dispute to court. d. order a party to submit to arbitration.

D

Courts of appeals conduct new trials in which evidence is submitted to the court and witnesses are examined.

False

For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principal place of business is located.

False

In mediation, the mediator proposes a solution and makes a decision resolving the dispute.

False

International treaties never stipulate arbitration for resolving disputes.

False

The United States will not enforce a foreign court's decision.

False

The federal courts are superior to the state courts.

False

U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions.

False

A court can exercise jurisdiction over property that is located within its boundaries.

True

A court's review of an arbitrator's award may be restricted.

True

A mini-trial is a private proceeding in which each party's attorney argues the party's case before the other party.

True

Laws would be meaningless without the courts to interpret and apply them.

True

Litigation is the process of resolving a dispute through the court system.

True

Mandatory arbitration clauses in employment contracts are generally enforceable.

True

Small claims courts are inferior trial courts.

True

The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.

True

To have standing to sue, a party must have complaining sufficient stake in a matter to justify seeking relief through the court system.

True

Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-state defendants.

True

Because corporations are not considered legal persons, courts use different principles to determine whether it is fair to exercise jurisdiction over a corporation.

False

The United States Supreme Court can review any case decided by any of the federal courts of appeals.

True

The verdict in a summary jury trial is not binding

True