Chapter 4 Fil 185

4. Rye, Inc., a manufacturer of sporting equipment based in New Hampshire, enters into an agreement with Sports R Us to supply 10,000 catcher's mitts. Sports R Us is a national retail chain of sporting goods stores based in Massachusetts. They also operate several store locations by leasing space in shopping centers throughout the northeast, including New Hampshire. Rye sues Sports R Us in the federal court in New Hampshire for breaking the contract. The federal court in New Hampshire has personal jurisdiction over Sports R Us primarily because of: a. Minimum contacts and purposeful availment. b. Voluntary jurisdiction. c. Injurious effects within the court's jurisdictional boundaries. d. Property ownership. e. The Zippo standard.

(A.) Although not based in New Hampshire, Sports R Us has continuous and systematic minimum contacts to the point where they have satisfied the purposeful availment requirement for personal jurisdiction.

1. Which of the following are primary roles of the judiciary? I. Judicial review II. Set policy III. Adjudicate disputes IV. Establish jurisdiction a. I and III b. II and III c. I, II, and III d. III and IV e. II, III, and IV

(A.) The primary responsibilities of the judiciary are to adjudicate disputes (trial courts) and engage in judicial review (appellate courts). The remaining answers are incorrect because courts do not set policy or establish jurisdiction (both are functions of other government units such as the legislature).

5. TechCo., a company based in Silicon Valley, California, files a lawsuit against its next-door neighbor claiming they violated the U.S. Patent Act. The court has subject matter jurisdiction because: I. Diversity of citizenship exists. II. The case involves a federal question. III. The United States is a party in the case. IV. The amount in controversy is more than $75,000. a. I only b. II only c. II and III d. I and IV e. IV only

(B.) Federal courts have subject matter jurisdiction in cases when (1) the United States is a party to the litigation; (2) the case concerns a federal question; and/or (3) diversity of citizenship exists (where the amount in controversy is more than $75,000). TechCo. is alleging a violation of a federal statute (U.S. Patent Act), so the case involves a federal question.

2. A state trial court has issued a ruling on a matter of a contract dispute between two parties. The ruling is binding on: a. All trial courts in that state. b. Only the parties in the case. c. Federal trial courts ruling on contract matters. d. All future parties in that state with a similar contract dispute. e. State trial courts and state appellate courts.

(B.) State trial courts are not courts of authority and cannot set precedent.

3. Which of the following are courts of authority (set precedent)? I. U.S. Court of Appeals II. U.S. District Court III. State appellate court IV. State trial court a. I and II b. II and III c. I, II, and III d. III and IV e. I and III

(E.) Only appellate courts have the authority to set precedent. Because the U.S. District Courts and the state trial courts are both trial courts, they do not have the authority to set precedent; therefore, the remaining answers are incorrect.

Minimum contacts p. 85

A defendant's activities within or affecting the state in which a lawsuit is brought that are considered legally sufficient to support jurisdiction in that state's courts.

Venue p. 77

A determination of the most appropriate court location for litigating a dispute.

Court p. 76

A judicial tribunal duly constituted for the hearing and adjudication of cases.

Party p. 84

A person or entity making or responding to a claim in a court.

State courts p. 77

Courts that adjudicate matters dealing primarily with cases arising from state statutes, state common law, or state constitutional law.

Federal courts p. 77

Courts that adjudicate matters dealing primarily with national laws, federal constitutional issues, and other cases that are outside the purview of state courts.

U.S. District Courts p. 78

Courts that serve the same primary trial function as state trial courts, but for issues involving federal matters.

8. A forum selection clause in a contract is unenforceable. True False

False. Forum selection clauses are presumptively valid (see Case 4.4: Franklin v. Facebook).

9. Some courts have rejected the Zippo standard as too vague. True False

False. In Snodgrass v. Berklee College of Music, the court criticized the Zippo standard as too vague and determined that interactivity of a website alone is not the deciding factor.

10. Typically, the defendant chooses the venue for a trial. True False

False. Venue is the legal concept that defines the most appropriate location of a trial. Venue rules are prescribed by state statute.

Judiciary p. 76

The collection of federal and state courts existing primarily to adjudicate disputes and charged with the responsibility of judicial review.

Subject matter jurisdiction p. 83

The court's authority over the dispute between the parties.

Personal jurisdiction p. 83

The court's authority over the parties involved in the dispute.

State trial courts p. 77

The first courts at the state level before which the facts of a case are decided.

U.S. Courts of Appeal p. 78

The intermediate appellate courts in the federal system frequently referred to as the circuit courts of appeal, consisting of 13 courts, each of which reviews the decisions of federal district courts in the state or several states within its circuit.

Jurisdiction p. 77

The legal authority that a court must have before it can hear a case.

Zippo standard p. 90

The legal framework used by trial courts in determining personal jurisdiction when one party is asserting minimum contacts based on a certain level of Internet activity by the defendant.

Defendant p. 77

The party alleged by the plaintiff to have caused the plaintiff to suffer damages.

Plaintiff p. 77

The party initiating a lawsuit who believes the conduct of another party has caused him to suffer damages.

U.S. Supreme Court p. 78 Subject matter jurisdiction p. 83

The ultimate arbiter of federal law that not only reviews decisions of the federal courts but also reviews decisions of state courts that involve some issue of federal law.

Remand p. 78

To send a case back to the lower court from which it came for further action consistent with the opinion and instructions of the higher court.

6. Most states have an intermediate appellate court. True False

True. It is true that most states have a trial court, an intermediate appellate court, and a final appellate court.

7. The U.S. Supreme Court has original and appellate jurisdiction. True False

True. The U.S. Supreme Court has original jurisdiction (e.g., cases involving ambassadors) and appellate jurisdiction (judicial review).

Diversity of citizenship p. 84

When opposing parties in a lawsuit are citizens of different states or one party is a citizen of a foreign country, the case is placed under federal court jurisdiction if the amount in controversy exceeds $75,000.

Federal question p. 83

Some issue arising from the Constitution, a federal statute or regulation, or federal common law.

State long-arm statute p. 85

State statute intended to allow a court to reach into another state and exercise jurisdiction over a nonresident defendant due to the defendant's conduct or other circumstances.

State appellate courts p. 77

State-level courts of precedent, concerned primarily with reviewing the decisions of trial courts.