Business Law - Chap 3

  1. I would like everyone to define the following terms during our next class:

    1. Standing;
    2. Venue;
    3. Personal Jurisdiction;
    4. Subject Matter Jurisdiction;
    5. Federal Question;
    6. Diversity of Citizenship;
    7. Amount in Controversy.
    1. Standing; - Standing to Sue - means the plaintiff must have some stake in the outcome of the lawsuit.

    2. Venue; - location where lawusites are heard based on the court jurisdiction nearst to the location where the incident occurred or where the parties reside. Example, speedign ticket in Las Vegas requires to deal with court in las vegas area. However certain situation, trials or cases can be heard at a nother location. This is a change of venue procedure.

    3. Personal Jurisdiction; - jurisdiction over a person a person; plaintiff filing a lawsuit with a court, give sthe court in personal jurisdiction over himself or herself. The court must also have in personal jursidiciton over the defendant which is usually obtained by having a summons served to that person within the territorial boundaries of the state.

    4. Subject Matter Jurisdiction; - jursidction over the subject matter of a lawsuit

    5. Federal Question; - federal courts have jurisdiciton to hear cases involving federal questions which are cases arising under the US constituion, treaties and federal statues and regulations. No dollar amount limit on federal questions cases that can be bourhg in federla court.

    6. Diversity of Citizenship; - case may be brough in federal court if there is diversity of citizenship. this occurs if the lawsuit involvess either citziens of dfferent states or citizen of a state and a citzien or subject of a foreigh country. Diversity of citizenship is used to bring or maintain a lawsuit in federla court when the subject matter of the lawsuit involves a nonfederal question. The puropse of this was to prevent state court bias against non residents.

    7. Amount in Controversy - Waiting for response
  2. What are the two Court systems in the United States?
    • 1. Federal Court System
    • 2. the court systems of the 50 states and the District of Columbia. eahc of these ystem has jurisdiciton to hear different types of lawsuits.
  3. State Court Systems
    Each state and the District of columbia has a separate court system. Most state court system consists of;

    • Limited-Jurisdiction Tiral Courts -(aka inferior trial courts)
    • Tiral courts are state courts that hear matters of a spcailized or limited nature (e.g., misdemeanor cimininal matters, traffic tickets, civil matters under a certain dollar amount). may states have created small claims courts that hear small-dollar amount civel cases 9e.g. under 45k where the parties cannot be represented by lawyers.
    • In many states, traffic courts, juvenile courts, justice of the peace courts, probate courts, family alw courts and corts that hear misdemeanor ciminal law cases and civil cases involving lawsuits under a certain dollar amount are examples of such courts.

    General-Jurisdiction Trial Courts - are state courts that hear cases of a general nature that are not within the jurisdeicitoin of limited-jurisdiction tiral courts.

    Intermediate App[ellate Court - are state courts that hear appeals from state trial courts. The appellate court reviews the trial court record in making its decision. No new evidence is introduced at this level.

    Highest State Court - each state has a highest court system. This court hears appeals from appellate courts and where appropriate, trial courts. This court revews the record in making its decisions. No new evidence is introdcued at this level. Most staes call this court the State Supreme Court.
  4. Who Appoints the US Supreme Court Justice?
    The preseident of the US has the power to appoint the Supreme Court Justice with the advice and consent of the Senate
  5. Federal Court System consists of the following:
    • Special Federal Courts
    • US Districts Courts
    • US Courts of Appeals
  6. What is Special Federal Courts?
    • US Tax Court - hears cases involving federal tax laws
    • US Court of Federal Claims - hears cases brought against the United Stastes
    • US Court of International Trade - hears cases involving tariffs and international commercial disputes.
    • US Bankruptcy Court - hears cases involving federal bankruptcy law.
    • US Court of Appeals for the Armed forces - hears cases involving memebers of the armed forces
    • US Court of Appeals for Veterans Claims - hears cases involving veterans of the armed forces.
  7. What is the US Distsrict Courts?
    US Distrct Courts are federal trial courts of general jurisdiction that hear cases not within the jurisdiction of specialized courts. There is at least one US distrct Court per state. More Populated states have several Distrct courts. The area serviced by one of these courts is called a district.
  8. What is US Court of Appeals?
    US court of Appeals are intermediate federal appellate courts that hear appeals from Distrct Courts located in their circuits and in certain instances from special federal courts and federal administrative agencies. There are 12 geographic circuits in this country. Eleven serve as areas that comprise several states, and another is located in Washington, DC. A 13th circuit court - the Court of Appeals for the Federal Circuit is located in Washington DC and it reviews patent, trademark and international trade cases.
  9. What is the highest court system and where is it located?
    US Supreme Court is the higest court system and it is located in w ashington DC.
  10. What is the US Supreme Court and it is compised of how many judges?
    US Supreme Court is comprised of nine justices who are nominated by the president and confirmed by the Senate. The president appoints one justice as cheif justce who is responsible for the administration of the Supreme court. The other eight justices are associate justices.

    • Notes from Chapter review:
    • The US Supreme Court is the highest cour of the federal court system. It hears appeals from the circuit courts and in some instances from special courts and US District courts. The Supreme Court, which is located n wahsington DC is composed of nine justices and on of whome is name dcheif justice.
  11. Decisions by the US Supreme Court
    • Unanimous opinion
    • Majority Opinion
    • Plurality Opinion
    • Tie Opinion
    • Concuring opinion
    • Dessenting Opinion
  12. The type of decision, all the justices agree as to the outcome and reasoning used to decide the case. The decision becomes precedent
    Unanimous opinion
  13. Type of decision, a majority of the justices agrees as the outcome and reasoning used to decide the case. The decision becomes precedent
    Majority Opinion
  14. Type of decision, a majority of the justices agrees as to the outcome but not as to the reasoning. The decision is not precedent
    Plurality Opinion
  15. decision is a tie vote, the lower courts decision stands. The decision is not precednet
    Tie Opinion
  16. Justice who agrees as to the outcome of the case but not the reasoning used by other justices may write a concurring opinion, setting forth his or her reasoning.
    Concurring Opinion
  17. Justice who disagrees with the outcome of a case may write a dissenting opinion, setting forth his or her reasong for dissenting
    Dissenting Opinion
  18. Jurisdiction of Federal and State Courts
    Federal Courts may hear cases involving federal questions and cases involving diversity of citizenships and consists of the following:

    • Federal Questions
    • Diversity of Citizenship
    • Exclusive Jurisdiciton
    • Jurisdiciton of State Courts
  19. What is Federal Questions?
    Federal questions are cases arising under the US Constituion, treaties and federal statues and regulations. There is no dollar-amount limit in federal question cases.

    Example: Larry has been sued by the United States of engaging in insder trading in violation of the Securites Exachange Act of 1934 and regulations adopted by the federal securites and Exhange Commisions (SEC). This lawsuit involves federal questions - a federal statue and a federal regulation - and therefore qualifies to be brought in the appropriate US District Court.
  20. What is Diversity of Citizenship
    Cases involving diversity of citizenship are cases between either citizens of different states or a citizen of a state and a citizen or subject of a foreigh country. Federal courts must apply the appropriate state law in such cases. The controversy must exceed $75k for the federal court to hear the case.

    Example: Henry, a residen of Idaho is driving his automobile when he negligently hits Mary a pedestrian. Mary is from New York. There is no federal question involved in this case. It is an automobile accident that involves state negligence law. however, there is another state, the state of New York. in this case mary, the plaintiff, may bring her lawsuit in federal court and if she does so, the case will remain in federal court. if mary brings the case in state court (usually the state which the automobile acciden occured) it will remain the state court if Henry agrees; however, Heny can move the case to federal court.
  21. What is Exlusive Jurisdiction?
    Federa courts have exclusive jurisdiction to hear cases involving federal crimes, antitrust, and bankruptcy; patent and copyright cases; suits against the United States; and most admiralty cases. State courts may not here these matters.
  22. What is Jurisdiction of State Courts?
    State court hear some cases that may be heard by federal courts. state courts have concurrent jurisdiction to hear cases invovlving diversity of citizenship and federal questions over which the federal courts do not have exclusive jurisdiction. The defendant may have the case removed to federal court.
  23. What is Personal Jurisdiction of Courts?
    To bring a lawsuit, the plaintiff must standing to sue, which is some stake in the outcome of the lawsuit.

    • In personam Jurisdiciton
    • In rem Jurisdiciton
    • Long-Arm Statues
    • Venue
  24. What is In personam Jurisdiction?
    The court must have jursidcition over the parties to a lawsuit. This is called in personam (or Personal) jurisdiciton. The plantiff submits to the jurisdction of the court by filing the lawsuit there. Personal jurisdiction is obtained over the defendant through service or process to that person.
  25. What is Standing to Sue?
    To birng a lawsuit, a plaintiff must have standing to sue. This means the plaintff must have some stake in the outcome of the lawsuit.

    Example: Suppose Linda's friend Jon is injured in an accident caused by Emily. Jon refuses to sue. Linda cannot sue emily on Jon's behalf because she does not have an interest in the result of the case.
  26. What is Service of Process?
    Service of process is usually accomplished by personal service of the summons and complaint on the defendant.
  27. What is In rem Jurisdiciton?
    A court may have jurisdiciton to hear and decide a case because it has jurisdiction over the property at issue in the lawsuit (e.g. , real property located in the state).

    Example: Suppose John, a resident of state of Masschusetts, owns a piece of vacant real estate in the state of new Hampshire. Sarah, a resident of the state of Florida owns the property adjacent to John's property. John and Sarah, a resident of the state of Florida owns the property adjacent to John's property. John and Sarah dispute the boundary line between the two parcels of property. John calims that an old fence lines sets the boundadry between the two parcels of property; Sarah claims that the lot line determined by a legal servey sets the boundary line between the two parcels of property. in this case, the court of new Hampshire will hear and decide the lot line deispute because it has in rem jurisdection - that is the properyt in disupte is located in new Hampshire.
  28. What is Long-Arm Statues?
    Long-arm statues permit a state to obtain personal jurisdiction over an out of state defendant as long as the defendant had the requisite minimum contact with the state. The out-of-state defendant may be served process outside the state in which the lawsuit has been brought.

    • The exercise of long-arm jurisdciton is generally permitted over nonresidents who have
    • 1. commited torts within the state,
    • 2. entered into a contract either in the state or
    • 3. that affects the state or transacted other business in the state that allegedly cuased injury to another person.
  29. What is Venue?
    A case must be heard by the court htat has jurisdiction nearest to twhere the incident at issue occurred or where the parties reside. A change of venue is granted if prejudice would occur because of pretrail publicity of another reason.

    Example: Harry, a Georgia residents commits a felony crime in Los angeles County CA. The CA superior court located in Los Angeles is the proper venue because the crime was committed there, the witnesses are probably from the area, and so on.

    Occationally, pretrial publicity may prejudice jurors located in the proper venue. In such cases, a change of venue may be requested so that a more impartial jury can be found. The courts generally frown upon forum shopping (i.e, looking for a favorable court without a valid reason)
  30. What is Associate Justice?
    Eight other judges of the US Supreme Court are called Associate Justice.
  31. what is Change of Venue?
    It is requested to change the location of the trial or hearing so that a more impartial jury can be selected / found. Example - Peterson case from Modesto.
  32. Who is Chief Justice?
    Appointed by the president with the assistance of the senate who is the responsible for the adminsitrataion of the US Supreme Court. Part of the 9 justices who are nominated bye the president
  33. What is Forum-Seleciton Clauses?
    in a contract designates the court that will hear any disputes that arise out of the contract. When parties have not agree in advance, courts must make the decision about which court has jurisdiciton. This determination costs time and moeny. Therefore, parties sometimes agree in their contract as to what state's courts, federal courts or country's court will have jurisdiciton to hear a legal dispute shoud one arise.
  34. What is Forum Selction and Choice of Law Clauses?
    A forum - seleciton clause in a contract designates the court that will hear any disputes that arise out of the contract.

    A choice of law clause in acontract disignates the law that will apply to any dispute that arises out of the contract.
  35. What is Choice of Law Clauses?
    In addition to agreeing to ao forum, the parites to a contract also often agree as to what state's law or country's law will apply in resolving a dispute.
  36. What is Concurrent Jurisdiciton?
    State courts have concurrent jurisdiction with federal courts to hear cases involving diveresity of citizenship and federal lquestions over which federal courts do no have exclusive jurisdiction. If a case involving concurrent jurisdiction is brought by a plaintff in federal court, the case remains in federal court. If the plaintiff brings a case involving concurrent jurisdiction in state court, the defendant can either let the case be deicded by the state court or remove the case to federal court.
  37. What is the rule of 4?
    The votes of four justices are necessary to grant an appeal and schedule an oral argument before the court. Basically - each justices of the supreme court have three law clerks who review the appeal and then would recommend if its something they should review or deny. The justices meet once a week and discuss each and with requires four votes for them to move forward with the appeal.
  38. What is Petition for Certiorari and Writ of Certiorari?
    A petitioner must file a petition for certiorari asking the Supreme Court to hear the case. If the Court decides to review a case, it issues a writ of certiorari.
Card Set
Business Law - Chap 3
Court Systems and Jurisdiction