Business Law Ch- 2

25 May 2023
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The Maine state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is‚Äč
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the judicial system.
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As a judge in a federal court, Elena can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as‚Äč
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judicial review
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Hope wants to file a suit against Gerry. For a court to hear the case,‚Äč
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he court must have jurisdiction.
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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‚Äč
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n rem jurisdiction.
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An Oklahoma state court can exercise jurisdiction over Petro Resources Inc., an out-of-state company, if the firm has‚Äč
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minimum contacts with the state.
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Milo files a suit against Nick in an Ohio state court, noting that Nick operates a Web site through which Ohio residents have done substantial business with him. The court is most likely to have jurisdiction over Nick if Milo's claim arises from‚Äč
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‚ÄčNick's Web site activities.
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David, an Alabama resident, files a suit in an Alabama court against QuickAds, an Internet company based in Georgia that provides advertising services. QuickAds only contact with persons in Alabama has been through QuickAds's passive advertising. The Alabama court is‚Äč
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not likely to have jurisdiction over the case.
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McHenry, a New York resident, files a suit in a New York state court against OneWorld Inc., a company based in California. OneWorld's only contact with McHenry is the company's app, which McHenry downloaded while traveling across the United States. According to the sliding-scale analysis, the factor most likely to confer jurisdiction on the New York court is‚Äč
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‚Äčthe degree of interactivity via the app between McHenry and OneWorld.
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All Bikes, Inc., a firm in Wisconsin, advertises on the Web. A court in Ohio would be most likely to exercise jurisdiction over All Bikes if the firm‚Äč
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‚Äčdid substantial business with Ohio residents over the Internet.
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Mediocrit√©, Inc., makes and sells goods that are substandard. Naomi, who has never bought or used a Mediocrit√© item, files a suit against the firm, alleging that its products are defective. The company's best ground for dismissal of the suit is that Naomi does not have‚Äč
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‚Äčstanding.
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Tyler, a citizen of Utah, files a suit in a Utah state court against Virtual Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that‚Äč
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‚Äčthe case is being heard for the first time.
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Stephan wins his suit against Tidewater Boats, Inc. Tidewater's best ground for appeal is the trial court's interpretation of
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the law that applied to the issues in the case.
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Delia files a suit against Eduardo in a Florida state court over the ownership of a boat docked in a Florida harbor. Both Delia and Eduardo are residents of Georgia. Eduardo could ask for a change of venue on the ground that Georgia‚Äč
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‚Äčis a more convenient location to hold the trial.
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Marty files a suit against Norah in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After the highest state court's review of Marty v. Norah, a party can appeal the decision to the United States Supreme Court if‚Äč
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‚Äčif a federal question is involved.
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Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have‚Äč
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‚Äčexclusive jurisdiction.
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Olivia, a citizen of Nebraska, wants to file a suit against Micah, a citizen of Kansas. Their diversity of citizenship may be a basis for‚Äč
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a federal court to exercise original jurisdiction.
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D'Antoni files a suit in a federal district court against Enya. D'Antoni loses the suit, appeals to the U.S. Court of Appeals for the Ninth Circuit, and loses again. D'Antoni asks the United States Supreme Court to hear the case. The Court is‚Äč
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‚Äčnot required to hear the case.
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The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pecan Corp. is heard in an appellate court. The difference between a trial and an appellate court is whether‚Äč
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‚Äča trial is being held.
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Carol files a suit against Andy in a state trial court and loses. Carol can‚Äč
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plead her case before an appellate court.
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Laredo loses his suit against McLain in a North Dakota state trial court. Laredo appeals to a state intermediate court of appeals and loses again. Laredo would appeal next to‚Äč
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the North Dakota Supreme Court.
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The Montana Supreme Court rules against Natural Grocery Mart in a case against One Stop 2 Shop Stores, Inc. Natural Grocery files an appeal with the United States Supreme Court. The Court does not hear the case. This‚Äč
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‚Äčmeans that the Montana court's decision is the law in Montana.
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The Kentucky Supreme Court rules against Luther in a case against Motor Cars, Inc. Luther wants to appeal the case to the United States Supreme Court. Luther must ask the Court to issue a writ of‚Äč
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‚Äčcertiorari.
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Salina files a suit against Tanner. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not adopt. This is‚Äč
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‚Äčmediation.
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First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely‚Äč
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set aside any award.
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Sforza files a suit against Thieu. If this suit is like most cases, it will be‚Äč
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‚Äčsettled before a trial.
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Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of‚Äč
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‚Äčnegotiation.
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Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have a long-standing business relationship that they would like to continue, they may prefer to settle their dispute through mediation because‚Äč
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he process is not adversarial.
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If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of‚Äč
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‚Äčarbitration.
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SPF Sunscreen Corporation and Taylor agree to resolve their dispute through arbitration. The arbitrator's decision is called‚Äč
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an award.
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Sour Dough Inc. and The Bread Company, agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may
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‚Äčorder a party to submit to arbitration.
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Cullen files a suit against Demi. Cullen and Demi 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 judge meets with the parties to encourage them to settle their dispute. This is‚Äč
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‚Äča summary jury trial.
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Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to‚Äč
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‚Äčset aside the award.
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Millie and Noble dispute the quality of a suite of furniture sold over the Internet. They agree to resolve their dispute in OpenTerms.com, an online forum. Like most online forums, OpenTerms.com applies
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‚Äčgeneral, universal legal principles.
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To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts‚Äč
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a. ‚Äčnot at all.
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Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum- selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in‚Äč
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‚ÄčCanada, the United States, or both.
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Norwest Trucking Corporation files a suit in a state court against Bob's Service Company (BSC), and wins. BSC appeals the court's decision, asserting that the evidence presented at trial to support Norwest's claim was so scanty that no reasonable jury could have found for the plaintiff. Therefore, argues BSC, the appellate court should reverse the trial court's decision. Is the appellate court likely to reverse the trial court's findings with respect to the facts? If not, why not? What are an appellate court's options after reviewing a case?‚Äč
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An appellate court will reverse a lower court's decision on the basis of the facts if the evidence does not support the findings or if it contradicts them. Appellate courts normally defer to a judge's decision with regard to the facts of a case, however, for a number of reasons. First, trial judges routinely sit as fact finders. As a result, they develop a particular expertise in determining what kind of evidence and testimony is reliable and what kind is not. Second, trial judges and juries have the opportunity to observe witnesses and tangible evidence first hand. The appellate court sees only a cold record of the trial court proceedings and therefore cannot make the kind of judgments about the credibility of witnesses and the persuasiveness of evidence that can be gleaned only from first hand experience. (There are also constitutional reasons for an appellate court to defer to a jury verdict. If, based on the evidence presented to a jury, a reasonable person could have come to the same decision that the jury came to, an appellate court cannot reverse the jury's decision with regard to the facts because this would, in essence, take away a person's right to a jury trial.) An appellate court's options after reviewing a case are to affirm the trial court's judgment, to reverse it in whole, to reverse it in part, to modify the decision, or to remand the case for further proceedings.