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Legal, Ethical, and Social Aspects of Business:     Test 3
General Test Questions & Answers

Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


Justice of the peace, municipal court, and small-claims court, are generally referred to as _____________ courts.
inferior
 
When a Mississippi defendant does business or extensively advertises in Louisiana, the defendant subjects himself or herself
to personal jurisdiction in Louisiana based on the concept of ____________________________.

minimum contacts
 
The court's authority over disputes between the parties is called __________jurisdiction.
subject matter
 
Choice of (court location) to litigate a dispute when courts have concurrent jurisdiction is an important strategic choice
forum
 
When an appellate court sends a case back to a lower court for further action, the appellate court is said to the case
remand
 
A discretionary order issued by the Supreme Court and other federal courts granting a request to argue an appeal is called a ______________________.
writ of certiorari
 
The party petitioning or asking for an appeal is called the _______.
appellant
 
A state family court that hears only divorce and child-related matters would be said to have jurisdiction.
limited
 
Once a federal judge is confirmed and sworn in, he or she may be removed only by death, retirement, or __________________ .
impeachment
 
A court may hear a case if it has jurisdiction over either the subject matter of the dispute or the parties in the case.
false
 
The U.S. Constitution requires that all state court judges be appointed by the state's governor, subject to the approval of the
state's legislature.

false
 
The majority of cases filed in the U.S. are filed in state court.
true
 
If Nevada sues the federal government over the constitutionality of a new federal statute, because the United States is a party,
the suit may be brought either in the state's highest court or in federal court.

false
 
Not all courts have the authority to hear all cases.
true
 
Katia and Torin are filing for divorce. Their marital home, which they still live in, is worth $7.5 million and their furniture and
other assets are worth more than $25 million. Katia wants half of everything, but Torin doesn't think she deserves more than
25 percent. They may file in federal court to have their dispute adjudicated.

false
 
Minimum contacts in a state need not be shown if an out-of-state corporation's conduct has the reasonably foreseeable
potential to cause injurious effects to a forum state plaintiff.

true
 
A court may exercise personal jurisdiction over a business
true
 
The trial court in New York has heard a case and issued a decision. This decision
will not be precedent in any U.S. courts.
 
Which of the following does not occur in appellate court trials?
Presentation of testimony and new evidence
 
Which of the following courts renders decisions binding only on the parties involved in the dispute?
The U.S. District Court.
 
When an attorney requests a change of venue, the attorney is asking to move the trial from one location to another due to the potential
unfairness of a trial in the first location.
 
Federal court judges are:
nominated by the president and subject to Senate confirmation.
 
When a party files a writ of certiorari to the U.S. Supreme Court, how many justices must vote to hear the case for it to be
accepted for review?

Four (4)
 
The ultimate arbiter of federal law is
U.S. Supreme Court
 
The main federal trial court is the
U.S. district court.
 
The U.S. legal system is primarily structured around a set of federaland state ______ that are collectively known as the _______
courts; judiciary
 
Two goals of the judiciary
adjudicate disputes and judicial review
 
interpreting and applying the rules of law and principles of equity to settle legal cases and controversies
dispute adjudication
 
Reviewing the decisions of lower courts and the actions of other branches of government to be sure that these decisions
and actions are consistent with existing law and that they comply with constitutional requirements

judicial review
 
Courts that adjudicate matters dealing primarily with cases arising fromstate statutory, state common, or state
constitutional law (first level)

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

federal courts
 
In order for a court to have authority to hear a case, ________ and proper ________ must be established
jurisdiction; venue
 
Two types of state courts
state trial court and state appellate court
 
The first courts at the state level before which the facts of a case are decided; when one party alleges a violation of some legal right or standard, the aggrieved party, known as the ________ , may bring a lawsuit against the alleged violator, known as the _________
state trial courts; plaintiff; defendant
 
The authority to hear only certain types of cases, such as divorce or adoption cases
 
A form of appeal in which the appeals court conducts the new trial as if the original trial had never occurred
Trial de novo
 
State-level courts of precedent, concerned primarily with reviewing the decision of trial courts
State appellate courts
 
How appellate courts assess the lower court's decision (1) review lower court transcripts and rulings, (2) read briefs, (3)
allow attorneys to engage in oral argument in front of appellate panel
 
Documents written by attorneys for each side articulating legal reasons why their side should prevail
briefs
 
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

Remand
 
The major distinction between trial and appellate courts is that appellate courts set _________ that is binding on all lower courts
precedent
 
Two types of US federal courts
district courts and courts of appeal
 
Federal courts that serve the same primary trial function as state trial courts but address issues involving federal matters
such as federal statutes, regulations, or constitutional issues

US district courts
 
There are ____ districts, with at least one federal district court in
every state and one for the District of Columbia
94
 
Federal district courts my also decide certain matters involving ____ ____ when the parties are from different states
and meet other jurisdictional requirements

state law
 
Bankruptcy court, tax court, court of international trade
specialty federal courts
 
The intermediate appellate courts in the federal system, frequently referred to as circuit courts of appeal; consists of 13 courts,
each of which reviews the decisions of federal district courts in the state or several states within its circuit

US courts of appeal
 
Decides a variety of exclusively federal issues such as patent, copyright, and trademark cases or cases where the US is the
defendant - has national jurisdiction

Federal circuit court of appeals
 
The ultimate arbiters of the law - consists of nine justices (can be from 5-10) whose primary role is to finalize a legal decision
on any given case; most cases reach this when conflicting opinions among appellate courts are issued and relatively complex
commercial matters such as cases involving patents, antitrust regulation, or securities laws

US Supreme court
 
A court's authority to decide a particular case based on (1) who the parties are and (2) the subject matter of the dispute
jurisdiction
 
A determination of the most appropriate court location for litigating a dispute
venue
 
For businesses, jurisdiction and venue are important to consider in a _____-_____ context - may affect managerial
decisions to either file or not file a given lawsuit because litigating disputes out of state increases costs

cost-benefit
 
In order for jurisdiction to be established, a court must have both ______ ______ and ______ jurisdiction
subject matter personal
 
The court's authority over the dispute between the parties
subject matter jurisdiction
 
the court's authority over the parties involved in the dispute
personal jurisdiction
 
In order for a federal court to have subject matter jurisdiction in a case, the issue must generally involve a ______ ______,
some issue arising from the constitution, a federal statute or regulation, or federal common law

federal question
 
A basis for federal court jurisdiction over a lawsuit between (1) citizens of different states (2) a foreign country and citizens
of a state or of different states, or (3) citizens of a state and citizens or subjects of a foreign country. The amount in controversy
must be more than $75,000 before a federal court can take jurisdiction in such cases

diversity of citizenship
 
The jurisdiction of courts that hear a case first, usually in a trial. These are the courts that determine the facts about a case.
original jurisdiction
 
Situation in which two different courts each have subject matter jurisdiction to hear a case; state courts may have this with
other state courts or federal courts concurrent jurisdiction costs, judges, juries, appeals, time

choice of forum should consider...
 
Jurisdiction over real or personal property when the property itself is the principle subject of the lawsuit
in rem jurisdiction
 
A type of jurisdiction exercised by a court over an out-of-state defendant's property that is within the jurisdictional boundaries
of the court; applies to personal suits against a defendant in which the property is not the source of the conflict but is sought
as compensation by the plaintiff. Also called attachment jurisdiction.

quasi in rem jurisdiction
 
A court's authority over the parties in a legal dispute - may be an individual or a business entity; jurisdiction analysis typically
focuses on the conditions of the controversy and the actions of the defendant

in personam jurisdiction
 
State statutes 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: (1) transacts business within state's borders - can be avoided by "Terms and
conditions", (2) commits a negligent act in that state that results in a loss to another party, (3) owns property in the state

state long-arm statute
 
A constitutional fairness requirement that a defendant have at least a certain minimum level of contact with a state before the
state courts can have jurisdiction over the defendant.

minimum contacts
 
Act of harming or ruining another's reputation
defamation
 
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

Zippo standard
 
General agreement between the United States, Canada, and the European Union governments to apply the law of the country
where the defendants servers are located

country of origin principle




Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


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