LES 105-Exam 1

1. Arbitration is never binding. a. True b. False [Note: Arbitration is usually binding. Some courts use nonbinding arbitration. See pages 107 and 111. Also CAREFULLY note when arbitration is not binding.]

False

1. Once a court decision is issued, it cannot be reversed without legislative action. a. True b. False [Note: The decision may be appealed. See page 77.]

False

4. A mediator listens to both sides and then makes a decision that both parties must obey. a. True b. False [Note: Arbitrators make decisions. Mediators help the parties come to a mutually agreed upon resolution to a dispute. See page 112.]

False

All court documents are private. a. True b. False [Note: Court documents are public records. See pages 114-115. Records of ADR proceedings are private.]

False

5. Medarb is a form of ADR where a third party assists the parties in reaching a mutual agreement settling a dispute and if that does not work, the third party proceeds with litigation. a. True b. False [Note: This proceeding begins as mediation and later proceeds to arbitration. See page 112.]

Flase

1. Laws are rules enacted by a government authority that govern individuals and relationships in society. a. True b. False [Note: This is discussed on page 3.]

True

17. An Arizona company sells a computer to a California resident. The California resident moves to Florida and then the computer malfunctions. The plaintiff files suit in a Florida court. The Florida court has jurisdiction. a. True b. False [Note: See page 95 for a discussion of "minimum contacts".]

True

2. Forum selection clauses stipulate that if litigation is required, a particular court in a particular state or country will have jurisdiction over the parties to the case. a. True b. False [Note: See page 100 - the "Business Planning Tip".]

True

2. Statutes enacted by Congress are examples of federal laws. a. True b. False [Note: Laws enacted by Congress, federal administrative agencies and federal executive orders are examples of federal laws. See page 19.]

True

2. The Federal Arbitration Act is passed to curb judicial declarations invalidating arbitration clauses. a. True b. False [Note: See page 108. The text notes that the U.S. Supreme Court has held that arbitration clauses are binding even in consumer contracts.]

True

3. Parties may agree to submit to arbitration as part of their contract or they can agree to arbitrate after a dispute arises. a. True b. False [Note: See page 108 for further discussion. An arbitration clause is presented on page 117.]

True

3. Stare decisis is the precedent set by earlier court cases which is used by judges to decide a later court case. a. True b. False [Note: A discussion of stare decisis can be found of page 5.]

True

4. Equity is a body of law that attempts to do justice when the law does not provide an adequate remedy. a. True b. False [Note: Traditionally, courts of law can only provide monetary damages, which may not adequately compensate the victim or provide an adequate remedy. Therefore, courts of equity were created to provide additional remedies, such as injunctions. See pages 5 and 6.]

True

6. An advantage to ADR is that a creative remedy can be developed to help both sides and courts do not have the ability to do this. a. True b. False [Note: See pages 115.]

True

If you are served with a summons and complaint, you have 20 or 30 days to answer or a motion explaining why a lawsuit in that court is improper. a. True b. False [Note: Defendants who reside outside the state in which the suit is filed have 30 days to respond before a default is entered. In state residents have 20 days. See page 121.]

True

Lawsuits must be filed within certain time limits called statutes of limitations. a. True b. False [Note: See page 119.]

True

9. In which of the following cases would there be federal subject matter jurisdiction? a. a case in which the Justice Department is prosecuting for criminal violations of the Sherman Act, a federal law. b. a case in which a Texas resident is suing a Wisconsin company for a refund of $1,000.00. c. a case in which two Arizona partners are suing each other d. a case in which the state attorney general is prosecuting a corporation for violation of state antitrust laws. [Note: Federal law district courts may hear cases in which the United States is a party, cases involving federal questions (i.e. those falling under federal law) and diversity of citizenship cases. See pages 84 - 85.]

a. a case in which the Justice Department is prosecuting for criminal violations of the Sherman Act, a federal law.

7. Criminal laws: a. are considered to be wrongs committed against society. b. are enforced by individuals. c. are generally not enforced by government agencies. d. none of the above. [Note: See page 4.]

a. are considered to be wrongs committed against society.

17. Investment banker Frank Quattrone sent an e-mail around to his employees reminding them about their e-mails and to "clean up those files" at a time when it was common knowledge that the SEC was investigating Mr. Quattrone's employer, Credit Suisse First Boston. The destruction of the e-mails a. could constitute spoliation. b. could constitute a request for production. c. is not a problem. d. both a and b [Note: See the Wal-Mart case is on pages 127-128. Also, this constitutes obstruction of justice because the firm was under investigation by the SEC at the time the "reminder" was sent.]

a. could constitute spoliation.

14. In personam jurisdiction: a. refers to jurisdiction over the parties in a case b. can be based on the subject matter of the case c. is based on constitutional standards of residence d. is only applied in federal courts [Note: See page 94. Courts must have jurisdiction over the parties to a case or the property that is the subject of litigation.]

a. refers to jurisdiction over the parties in a case

4. Appeals courts a. Always retry lower court cases in their entirety. b. Review the records of the lower courts to determine if the law is applied properly. c. Do not publish their opinions. d. None of the above. [Note: See pages 77. Some appellate courts publish their decisions but other do not. Appeals courts do not retry cases in their entirety, contrary to public opinion.]

b. Review the records of the lower courts to determine if the law is applied properly.

14. If you sign a contract that includes language such as the following: "Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by binding arbitration in Phoenix, Arizona. The award of the arbitrator shall be final and binding and judgment thereon may be enforced by any court of competent jurisdiction." a. You may choose to arbitrate or to file a lawsuit. b. You have forfeited your right to file a lawsuit. c. The proceeding will be a matter of public record. d. Full discovery rights and subpoena power of the court are preserved. [Note: When you agree to binding arbitration - and almost all arbitration is binding arbitration, you lose your right to file suit. See page 107-108.]

b. You have forfeited your right to file a lawsuit.

12. In which of the following cases would there be federal subject matter jurisdiction? a. a case in which the Arizona attorney general is prosecuting a sex offender. b. a case in which a Texas resident is suing a Wisconsin company for a refund of $1,000,000.00 c. a case in which two Arizona partners are suing each other. d. a case in which the state attorney general is prosecuting a corporation for violation of state antitrust laws. [Note: This is a case falling in which federal law applies, so the court has federal question jurisdiction. See pages 84-85.]

b. a case in which a Texas resident is suing a Wisconsin company for a refund of $1,000,000.00

18. Emma Samuels is a resident of St. Johnsbury, Vermont. She was injured in an auto accident in St. Johnsbury when a resident of Burlington, Vermont, struck her car from behind. Emma wishes to bring suit to recover her medical costs and the costs of repair to her car. Emma's suit: a. is properly brought in federal court in Vermont because the drivers were residents of different cities b. is properly brought in Vermont's general trial court c. is properly brought in U.S. Court of Claims since two U.S. citizens were involved d. none of the above [Note: This is not a diversity case, or a case arising under federal law, so the state of Vermont has jurisdiction.]

b. is properly brought in Vermont's general trial court

11. The minimum amount required for a federal diversity of citizenship suit is: a. $10,000 b. $50,000 c. $75,000 d. There is no minimum amount if there is diversity [Note: See page 85. The plaintiff and defendant must be residents of different states as well.]

c. $75,000

. The Wal-Mart case illustrates that a. It is acceptable to destroy evidence after a lawsuit is filed. b. Evidence must be preserved at all times. c. A party to a lawsuit has the duty to preserve evidence if it knew that there was a substantial chance of litigation and the evidence would be material to it. d. All of the above. [Note: See the first whole paragraph on the second column on page 128.]

c. A party to a lawsuit has the duty to preserve evidence if it knew that there was a substantial chance of litigation and the evidence would be material to it.

6. Which of the following is correct? a. The rule of law in the case is not precedent b. Dicta is precedent c. Dicta is the discussion of the rule of law d. none of the above [Note: The rule of law is binding precedent in the case. Everything in the case other than the rule of law is not binding. Dicta is a discussion of the rule of law in a case - but it is not the rule itself - so it is not binding as precedent going forward. See page 79-80.]

c. Dicta is the discussion of the rule of law

16. Long-arm statutes: a. give state courts automatic jurisdiction over out-of-state defendants b. have been ruled unconstitutional c. are simply procedural statutes that still require "minimum contacts" for use d. none of the above [Note: See pages 96. For jurisdiction over out-of-state defendants who do not consent to jurisdiction, you need a long-arm statute and minimum contacts over the defendant.]

c. are simply procedural statutes that still require "minimum contacts" for use

8. Changes in laws that are made as the result of changes in technology illustrate which characteristic of law? a. consistency b. pervasiveness c. flexibility d. none of the above [Note: Flexibility is discussed on page 7 of your text.]

c. flexibility

7. Which of the following is not a specialized court in the federal system? a. tax court b. bankruptcy court c. probate court d. U. S Claims Court e. U. S. Court of International Trade

c. probate court

5. If a case is reversed and remanded, it: a. is dismissed with no further proceedings b. is reversed with no further proceedings c. requires additional hearings or determinations at the trial court level d. means that the lower court acted unconstitutionally e. none of the above [Note: These terms are described on page 78.]

c. requires additional hearings or determinations at the trial court level

13. The particular geographical area within a judicial district where a suit should be brought. a. jurisdiction b. in rem c. venue d. exhaustion doctrine [Note: See page 92 for a discussion of venue.]

c. venue

. Voir dire a. Allows attorneys to ask jurors questions about their knowledge of the case, level of education, background, etc. b. Allows attorneys to make challenges for cause c. Provide for preemptory challenges d. All of the above [Note: See pages 130-131 for a discussion about jury selection.]

d. All of the above

15. Forms of discovery include a. Requests for production b. Depositions c. Requests for admissions d. All of the above [Note: These are discussed on pages 126 - 127.]

d. All of the above

15. Jurisdiction is proper when a defendant a. owns property within the state when the property is the subject of the suit. b. agree to submit to a particular state's jurisdiction in a contract. c. is physically present or had minimum contacts within the state. d. All of the above. [Note: See pages 94-95 for a more thorough discussion of the issue.]

d. All of the above.

9. Sam created a searchable website that stores information about users and will allow them to share their dvds with others so that they may download movies and make copies for themselves. a. Sam may be vicariously liable for copyright infringement. b. Sam may be responsible for contributory infringement. c. There is no infringement issue so Sam has no liability. d. Both a and b [Note: Please refer to the Grokster case which is very similar and would be considered precedent.]

d. Both a and b

5. Which statement is incorrect? a. In the past, courts of law could only give money damages and courts of equity could grant non-monetary relief. b. The courts of law and equity have merged. c. Today, courts of law can grant both legal and equitable remedies. d. Today, equitable remedies are granted in courts of equity alone. [Note: Options a, b and c are correct. See page 5 and 6.]

d. Today, equitable remedies are granted in courts of equity alone.

10. Cases that can be heard in federal court include: a. diversity of citizenship and a claim of $75,000 or more b. federal question cases c. cases where the United States is a party d. all of the above. [Note: See page 84-85 for a discussion of this issue.]

d. all of the above.

8. A writ of certiorari is: a. a reversal by an appeals court of a lower court decision b. a refusal to review a lower court decision c. a reduction in damages awarded by the trial court d. an order granting review of a case [Note: The United States Supreme Court issues this type of writ when it decides to review a case. See page 89.]

d. an order granting review of a case

10. Which statement is incorrect about mini-trials? a. It is a small-scale trial where parties present case to a judge with experience in the field or to a neutral advisor. b. An advisor or judge makes the decision. c. It can motivate parties to resolve differences even if the results are not binding. d. none of the above [Note: See page 112 for a description of mini-trials. This is a nonbinding procedure that may help that parties reach a settlement.]

d. none of the above

6. Purposes of the law include: a. influencing conduct b. honoring expectations c. promoting equality d. keeping order. e. All of the above are correct. [Note: The purposes of law are on pages 6 and 7.]

e. All of the above are correct.

3. Precedent does not have to be followed when a. Cases are factually distinguishable b. Precedent is from another jurisdiction c. Technology changes d. Sociological, moral, or economic changes or needs e. All of the above. [Note: See pages 80-81 for more detail.]

e. All of the above.

11. The advantages of arbitration over litigation include a. Less formality b. Some flexibility in scheduling hearing dates c. Records of the proceeding are private d. A speedier resolution to the dispute e. all of the above [Note: See pages 108 and 114-115.]

e. all of the above