Business Law Chapter 3

Milo files a suit against Nick in an Ohio state court, noting that Nick operates a Web site through which Ohio residents have done substantial business with him. The court is most likely to have jurisdiction over Nick if Milo's claim arises from:

-Nick's Web site activities

Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over Carl's failure to pay Sandy for work on his house. The amount in dispute is $15,000. Under diversity of citizenship requirements:

-a federal court cannot take jurisdiction because the amount in controversy is less than $75,000

Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably filed her suit in:

-a small claims court

A default judgment is a judgment entered against the party who brought the claim before the court

-false

All states have intermediate appellate courts

-false

Cases involving diversity of citizenship arise only between citizens of different states

-false

Federal courts are superior to state courts

-false

Generally, a state court's power is limited to the territorial boundaries of the state in which it is located and the immediately adjacent states

-false

Small claims courts hear both civil and criminal cases

-false

State courts cannot have exclusive jurisdiction.

-false

The amount in controversy in a diversity of citizenship case must be more than $1 million before a federal court can take jurisdiction

-false

There are twelve justices on the United States Supreme Court and they all receive life-time appointments

-false

Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Jack, who is a resident of North Carolina, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Jack wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that:

-federal and state courts have concurrent jurisdiction

Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of Petite Isle, an island in North Rapids River on the border between Canada and the United States. The diversity of the parties' citizenship could serve as a basis for:

-federal jurisdiction

Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. The Vermont state courts:

-have exclusive jurisdiction over this case

Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has:

-in rem jurisdiction

Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n):

-long arm statute

A Montana state court can exercise jurisdiction over Endurance Insurance Corporation, an out-of-state defendant, but the defendant must have:

-minimum contacts with the state

Justin wants to file a suit against Mikayla. For a court to hear the case:

-the court must have jurisdiction

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers.

-true

A disposition is a sworn testimony by a party to a lawsuit or any witness

-true

A state court can exercise jurisdiction over an out-of-state defendant who does business in the state over the Internet

-true

A state long arm statute allows a court to exercise jurisdiction over out-of-state defendants based on activities that took place within the state

-true

Concurrent jurisdiction exists when both federal and state courts have the power to hear a particular case

-true

There is at least one federal district court in every state

-true