Chapter 2

State courts are independent of federal courts.

True

The U.S. Constitution does not mention the power of judicial review.

True

The United States Supreme Court can review a decision by a state's highest court only if a question of federal law is involved.

True

The courts can decide whether the other branches of government have acted within the scope of their constitutional authority.

True

The body of American law includes

federal and state constitutions, statutes, administrative laws, and case decisions.

In a lawsuit, an issue that involves only disputed facts, and not what the law is on a given point, is referred to as a

question of fact

In a lawsuit, an issue that must be decided by the judge involving the application or interpretation of a law is referred to as a

question of law

Inferior Company sells products that are poorly made. Jack, who has never bought or used an Inferior product, files a suit against Inferior, alleging that its products are defective. The firm's best ground for dismissal of the suit is that Jack does not have

standing

For purposes of diversity of citizenship, a corporation is a citizen only of the state in which it is incorporated.

False

A major nonprofit provider of ADR services is the

AAA

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

Canada, the United States, or both

Dick submits his claim against EZ Sales Corporation to FairSettle.com, a private, online dispute resolution forum. At any time, an appeal of the dispute to a court may be made by

Dick or EZ

A function of the congress is to interpret and apply the law.

False

An arbitrator can never render a legally binding decision.

False

Appellate courts generally focus on questions of fact, not of law.

False

If litigation takes place in two or more countries, each country will probably apply the law of the other country.

False

International treaties never stipulate arbitration for resolving disputes.

False

Joseph, a resident of Spain, sued Sandra, a resident of France, in Spain. If Joseph prevails, France must enforce the court's judgment.

False

The American Arbitration Association provides arbitration services for domestic disputes but not for international disputes.

False

The U.S. Constitution expressly gives the courts the power of judicial review.

False

The U.S. Constitution expressly gives the power of judicial review to the executive branch of government.

False

The U.S. Constitution expressly gives the power of judicial review to the legislative branch of government.

False

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards has not been implemented by the United States.

False

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

False

The main role of the judicial branch is to draft proposed laws for the populace to vote on.

False

Jack and Jill, longtime friends, entered into a contract which could not be completed as anticipated, because of events beyond their control. They want to resolve their dispute without litigation and by agreement as they decide, but believe they need help from someone experienced at resolving such disputes. Which of the following dispute resolution mechanisms would work best for them?

Mediation

Emile's father just died, and his estate must be divided between his heirs. What kind of court will Emile go to in order to settle his father's estate?

Probate court

Juan took his tuxedo to the dry cleaner to be cleaned before his wedding, but the dry cleaner destroyed the tux, and Juan had to buy a new one for the wedding. If Juan wants to sue the dry cleaners for the loss of his tux, he would most likely file suit in this kind of court, which handles claims for a limited dollar amount, usually $5,000 or less.

Small claims court

While Congress was not meeting, the president appointed two members to the National Labor Relations Board. A party averse to the NLRB asserts that the president's appointment of the two members violated the Recess Appointments Clause of the U.S. Constitution. Which branch of government has authority to decide whether the president's action was constitutional or unconstitutional?

The judicial branch

Which of the following normally is not available in online dispute resolution?

The service provider makes findings of fact and recommends how a court should proceed.

A federal case typically originates in a federal district court.

True

A function of the courts is to interpret and apply the law.

True

Bankruptcy courts are an example of a federal court with original, but special (or limited), jurisdiction.

True

The federal court system does not include the

U.S. Chamber of Commerce.

Federal cases typically originate in

U.S. district courts

Sam, a citizen of New Mexico, wants to file a suit against Tanya, a citizen of Texas. Their diversity of citizenship may be a basis for

a federal district court to exercise original jurisdiction.

In Harry's suit against Irma, the parties meet before going to trial, and each party's attorney argues the party's case before the other party. A third party renders an opinion as to how a court would likely decide the dispute. This is

a mini-trial

In international arbitration proceedings, the third party may be

a neutral entity.a panel of individuals representing both parties' interests.some other group or organization.

A long arm statute allows a court to exercise jurisdiction over

a nonresident defendant who has minimum contacts with the state in which the court is located.

Molly files a suit against Nick. 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 parties take part in mandatory negotiations. This is

a summary jury trial

A federal court can exercise jurisdiction if a case involves

a treaty, the U.S. Constitution, or a federal law

Jan and Sarah entered into a contract, but then fell into a dispute, so the contract was not completed. Jan would like to settle the matter amicably, but Sarah refuses to talk to her. Since they cannot settle the matter themselves, and neither wants to go to court, their best option might be

an arbitration.

A court can exercise personal jurisdiction over

any person or business that resides in a certain geographic area.

If litigation takes place in two or more countries, each country will probably

apply its own national law to the transaction

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of

arbitration

Jim files a suit against Kay. 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 renders a legally binding decision. This is

arbitration

Abigail sues Zeke for defamation. At trial, Abigail and Zeke disagree over whether Zeke made a false factual statement about Abigail's business. The court found in favor of Abigail's version of events. On appeal, the appellate court will

challenge the trial court's finding of fact if it is clearly erroneous.

When both federal and state courts have the power to hear a case, these courts have

concurrent jurisdiction

A federal court judge is an elected official.

false

If a plaintiff wins a favorable judgment in a lawsuit litigated in the plaintiff's country, the

defendant's country could refuse to enforce the court's judgment.

The American Arbitration Association provides arbitration services

for international as well as domestic disputes

This clause in a contract designates the court or country (jurisdiction) where any dispute arising under the contract will be litigated

forum selection

A state court can exercise personal jurisdiction over an out-of-state defendant if the defendant

had minimum contacts with the state

Standing can be broken into three elements

harm, causation and remedy

Unlike in other forms of alternative dispute resolution, an arbitrator

imposes a resolution on the parties that may be binding or nonbinding.

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards has been implemented

in more than 145 countries, France and Spain.

A state court can exercise jurisdiction over property located within its boundaries. This type of jurisdiction is called

in rem jurisdiction.

After Mason loses his negligence case at the federal trial court, he appeals to the U.S. court of appeals and loses again. Mason then appeals to the U.S. Supreme Court, which denies his petition for a writ of certiorari. The effect of this denial

is not a decision on the merits of case

The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch is called

judicial review

The authority of a court to hear and decide a specific case is referred to as

jurisdiction

Venue refers to the

most appropriate location for a trial

Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without involving a third party. This is

negotiation

Joe and Krista have a dispute concerning a contract. They decide to try to settle the problem themselves, without the help of a third party. This type of ADR is known as

negotiation

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. The least expensive method to resolve the dispute between Java and Kaffe may be

negotiation because no third parties are needed

The number of justices on the United States Supreme Court is

nine.

Business people who engage in international business transactions

normally take special precautions to protect themselves.

A writ of certiorari issued by the U.S. Supreme Court indicates that

the Court will hear the case

International contracts often include a clause that disputes will be resolved by a neutral third party, such as

the International Chamber of commerce

The Ohio state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is

the court

The Texas legislature passes a law making it illegal to criticize the governor of Texas. Which body of government could render a decision that this statute violates the U.S. Constitution?

the courts

The doctrine of judicial review allows

the judicial branch to decide whether laws or actions of the other branches of government are constitutional.

In order for a plaintiff to have standing to sue

the plaintiff must have a sufficient stake in the matter. the plaintiff must demonstrate that he or she has been either injured or threatened with injury.the controversy at issue must be a justiciable controversy.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because

the process is not adversarial.

The essential role of the judiciary is

to interpret and apply the law