Chapter 2 - Courts and Alternative Dispute Resolution

Fact Pattern 2-1 (Questions 31-33 apply)

Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract.

A closing argument is a statement by a party that results in a summary judgment in that party's favor.

False

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

False

A motion for a new trial will be granted only if a constitutional issue is involved.

False

A summary judgment is granted only if there is no genuine question of law.

False

ADR proceedings are always strictly regulated by federal statutes.

False

An answer never admits to the allegations made in a complaint.

False

Any judgment is enforceable.

False

Arbitration is always legally binding.

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

Lawyers are not allowed to represent people in small claims courts in any of the states.

False

Negotiation is the most complex form of alternative dispute resolution.

False

On a motion for judgment on the pleadings, a court may consider evidence outside the pleadings.

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

The verdict in a summary jury trial is binding.

False

There are twelve justices on the United States Supreme Court.

False

There is one set of procedural rules for federal courts and one set for state courts.

False

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

True

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

True

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

True

A motion for a directed verdict is also known as a motion for judgment as a matter of law.

True

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

All states have intermediate appellate courts.

True

Any relevant material, except information stored electronically, can be the object of a discovery request.

True

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

True

In mediation, the mediator proposes a solution that includes what compromises are necessary to reach an agreement.

True

Interrogatories are written questions for which written answers are prepared and signed under oath.

True

Most online dispute resolution services apply general, universal legal principles to resolve disputes.

True

The United States Supreme Court has original jurisdiction in some situations.

True

There is at least one federal district court in every state.

True

U.S. district courts have original jurisdiction in federal matters.

True

iTablets, Inc., files a suit against Andromeda Pads Corporation. Suri is a witness for iTablets. Kevin is a witness for Andromeda. iTablets may direct interrogatories to a. Andromeda. b. Suri. c. Kevin. d. the judge.

a. Andromeda

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. a long arm statue b. an in personam statute c. an in rem statue d. an out-of-state jurisdiction statute

a. a long arm statue

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. a small claims court. b. a domestic relations court. c. a municipal court. d. a probate court.

a. a small claims court

Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After its review of Kelly v. Lewis, the appellate court upholds the lower court's verdict. The appellate court has a. affirmed the case. b. reversed the case. c. remanded the case. d. reversed and remanded the case.

a. affirmed the case

Refer to Fact Pattern 2-1. If Bean and Java resolve their dispute by having a neutral third party render a binding decision, they will have used the method of a. arbitration. b. conciliation. c. intervention. d. mediation.

a. arbitration

Ben files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the United States Supreme Court to hear the case. The Court agrees to hear the case. This means that a. at least four justices approve of hearing the case. b. Cathy's petition does not raise a possibility of an important constitutional question. c. the amount in controversy in Cathy's suit is greater than $100,000. d. the Court feels that the lower courts' judgments were erroneous.

a. at least four justices approve of hearing the case

In Kettle Cafe's suit against Food Services, Inc., the court issues a judgment in Kettle's favor. The judgment can be appealed to an appropriate court of appeals by a. either party. b. Kettle only. c. Food Service only. d. neither party.

a. either party

Solar Power, Inc., files a suit against Thunder Bay Utility Company and seeks to examine electronic documents in Thunder's possession. A legitimate reason for this examination is that the documents contain a. evidence about the case. b. private information about Thunder's operations. c. public information about energy generation. d. irrelevant data that can be eliminated from consideration.

a. evidence about the case

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 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. 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 a. federal jurisdiction. b. general jurisdiction. c. limited jurisdiction. d. universal jurisdiction.

a. federal jurisdiction

A Montana state court can exercise jurisdiction over Endurance Insurance Corporation, an out-of-state defendant, if the defendant has a. minimum contacts with the state b. optimum contacts with the state c. any contacts with the state d. no contacts with the state

a. minimum contacts with the state

To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, 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. not at all

Tyler, a citizen of West Virginia, files a suit in a West Virginia state court against Louisville Sales Corporation, a Kentucky state company that does business in West Virginia. The court has original jurisdiction, which means that a. the case is being heard for the first time. b. the court has a unique method of deciding whether to hear a case. c. the court has unusual procedural rules. d. the subject matter of the suit is interesting and new.

a. the case is being heard for the first time

The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Refrigerated Transport, Inc. is heard in an appellate court. The difference be¬tween a trial and an appellate court is whether a. the proceedings focus on the presentation of evidence and the examination of witnesses b. the court is appealing c. the parties question how the law applies to their dispute d. the subject matter of the case involves complex facts

a. the proceedings focus on the presentation of evidence and the examination of witness

Milo files a suit against Nick in an Ohio state court, noting that Nick op¬erates a Web site through which Ohio residents have done substan¬tial business with him. The court is most likely to have jurisdiction over Nick if Milo's claim arises from a. anything an Ohio resident has done. b. Nick's Web site activities. c. nothing an Ohio resident has done. d. something other than Nick's Web site.

b. Nick's Web site activities

Lyn files a suit against Karl. Karl denies Lyn's charges and sets forth his own claim that Lyn breached their contract and owes Karl money for the breach. Karl's claim is a. a contrary charge. b. a counterclaim. c. a counterpoint. d. a cross complaint.

b. a counterclaim

The Arizona 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. certiorari

Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Lara, through her ad, has a. a commercial cyber presence in Missouri. b. conducted substantial business with Missouri residents. c. general maximum contact with Missouri. d. solicited virtual business in Missouri.

b. conducted substantial business with Missouri residents

David, an Alabama resident, files a suit in an Alabama court against QuickAds, an Internet company based in Georgia that provides advertising services. QuickAds's only contact with persons in Alabama has been through QuickAds's passive advertising. In this case, the Alabama court most likely a. has jurisdiction. b. does not have jurisdiction. c. has concurrent jurisdiction with a Georgia state court. d. has concurrent jurisdiction with a federal court.

b. does not have jurisdiction

Drummond wants to make a federal case out of his dispute with Elena. Federal cases originate in a. federal courts of appeals. b. federal district courts. c. state trial courts. d. the United States Supreme Court.

b. federal district courts

Martha brings a suit against SafeCars, Inc. claiming that she was injured during a car crash due to defects in the car she had purchased from SafeCars. There is no evidence that Martha was injured in the accident, but the trial court awards her $1 million in damages. SafeCars appeals the decision. The appellate court will most likely a. not modify the trial court's finding of fact because appellate courts are forbidden to look at questions of fact. b. modify the trial court's finding of fact because the finding was clearly erroneous. c. modify the trial court's finding of fact because the award amount was more than $25,000. d. modify the trial court's finding of fact because the award amount was less than $5 million.

b. modify the trail court's finding of fact because the finding was clearly erroneous

Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to a. a U.S. district court. b. the Minnesota Supreme Court. c. the United States Supreme Court. d. the U.S. Court of Appeals for the Eighth Circuit.

b. the Minnesota Supreme Court

Justin wants to file a suit against Kemel. For a court to hear the case a. Kemel must agree b. the court must have jurisdiction c. the court must issue a deposition d. the parties must own property

b. the court must have jurisdiction

Carol files a suit against Andy in a state trial court and loses. Carol a. cannot take her case any higher in the court system. b. can insist that the United States Supreme Court hear her case. c. can plead her case before an appellate court. d. can plead her case before a small claims court.

c. can plead her case before an appellate court

Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. Over this case, the Vermont state courts have a. concurrent jurisdiction with federal courts. b. concurrent jurisdiction with other state courts. c. exclusive jurisdiction. d. no jurisdiction.

c. exclusive jurisdiction

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 a. federal jurisdiction b. in personam jurisdiction c. in rem jurisdiction d. no jurisdiction

c. in rem jurisdiction

Refer to Fact Pattern 2-1. If Bean and Java have a long-standing business relationship that they would like to continue, they may prefer to set¬tle their dispute 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. the process is not adversarial

Jason files a suit against Maybelline. If Maybelline fails to respond, Jason a. must appeal the case to a different court. b. must refile the suit in the same court. c. will be awarded the remedy sought. d. will have a default judgment entered against him.

c. will be awarded the remedy sought

Wade wants to initiate a suit against Valley Vacation Tours by filing a complaint. The complaint should include a. an explanation to refute any defense the defendant might assert. b. a motion for summary judgment. c. a motion to dismiss. d. a statement of the facts necessary to show Wade is entitled to relief.

d. a statement of the facts necessary to show Wade is entitles to relief

Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio 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. is a more convenient location to hold the trial

Refer to Fact Pattern 2-1. The least expensive method of resolving the dis¬pute between Bean and Java 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. negotiation because no third parties are needed

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. order a party to submit to arbitration

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 cannot exercise jurisdiction in this case because a. the dispute concerns property, not persons. b. a state court has not yet ruled in the suit. c. the parties are citizens of different states. d. the amount in controversy is less than $75,000.

d. the amount in controversy is less than $75,000

To initiate a lawsuit, Darla files a complaint against E-Sales Company, which re¬sponds with an answer. Together, the complaint and answer are a. a motion to dismiss. b. a summons. c. a writ of certiorari. d. the pleadings.

d. the pleadings

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is a. an assessment of the validity of the arguments for both parties. b. a determination of the issues to be argued before the court. c. the trial. d. the selection of jurors.

d. the selection of jurors