Deck 2: Courts and Alternative Dispute Resolution

Question 1

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The courts can decide whether the other branches of government have acted within the scope of their constitutional authority.

Answer 1

True

Question 2

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The jurisdiction of state courts of appeals is substantially limited to hear?ing appeals.

Answer 2

True

Question 3

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers.

Answer 3

True

Question 4

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The federal court system does not include the U.S. Court of International Trade.

Question 5

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Venue is the term for the subject matter of a case.

Question 6

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The federal equivalent of a state trial court is a U.S. court of appeals.

Question 7

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Federal courts are superior to state courts.

Question 8

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A state court cannot exercise jurisdiction over property located within the state's boundaries regardless of the property owners' location.

Question 9

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The function of the courts is to interpret and apply the law.

Question 10

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
For purposes of diversity of citizenship, a corporation is a citizen only of the state in which it is incorporated.

Question 11

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Concurrent jurisdiction exists when both federal and state courts have the power to hear a particular case.

Question 12

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
State courts are independent of federal courts.

Question 13

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A justiciable controversy is a case in which the court's decision-the "jus?tice" that will be served-will be controversial.

Question 14

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Any lawsuit involving a federal question can originate in a federal court.

Question 15

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The executive branch is the final authority concerning the constitutionality of a law.

Question 16

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
To have standing to sue, a party must have been injured or have been threatened with injury by the action about which he or she is complaining.

Question 17

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A long arm statute permits a court to obtain jurisdic?tion over an out-of-state defendant.

Question 18

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The decisions of state trial courts of limited jurisdiction may sometimes be appealed to state trial courts of general jurisdiction.

Question 19

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Cyberspace is its own jurisdiction.

Question 20

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Minimum contacts with a jurisdiction are never enough to support jurisdiction over a nonresident defendant.

Question 21

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
In mediation, the mediator proposes a solution that includes what com?promises are necessary to reach an agreement.

Question 22

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Most lawsuits are settled or dismissed before they go to trial.

Question 23

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A choice-of-law clause designates the jurisdiction for the litigation of disputes arising under a contract.

Question 24

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Federal cases typically originate in federal district courts.

Question 25

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The verdict in a summary jury trial is binding.

Question 26

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Most online dispute resolution services apply general, universal legal principles to resolve disputes.

Question 27

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A court's review of an arbitrator's award may be restricted.

Question 28

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The United States Supreme Court has appellate authority over all cases decided in the state courts.

Question 29

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
In early neutral case evaluation, a third party's evaluation of each party's strengths and weaknesses forms the basis for negotiating a settlement.

Question 30

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Mediation is adversarial in nature.

Question 31

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The United States Supreme Court can review a decision by a state's high?est court only if a question of federal law is involved.

Question 32

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Mandatory arbitration clauses in employment contracts are not enforceable.

Question 33

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
In some courts, pretrial negotiation is mandatory.

Question 34

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Alternative dispute resolution refers to any method for resolving a dispute outside the court system.

Question 35

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A choice-of-law clause is a provision in a contract that excuses a party from liability for nonperformance due to "acts of God."

Question 36

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
An arbitrator can never render a legally binding decision.

Question 37

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A mini-trial is a private proceeding in which each party's attorney ar?gues the party's case before the other party.

Question 38

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Negotiation is the most complex form of alternative dispute resolution.

Question 39

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
A court will review a contract for validity even if it contains an arbitration clause.

Question 40

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
No court offers mediation as an option before a case goes to trial.

Question 41

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
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

A) diversity jurisdiction.
B) in personam jurisdiction.
C) in rem jurisdiction.
D) no jurisdiction.

Question 42

Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to

A) a U.S. district court.
B) the Minnesota Supreme Court.
C) the United States Supreme Court.
D) the U.S. Court of Appeals for the Eighth Circuit.

Question 43

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Paula, a resident of California, owns a farm in Iowa. A dispute arises over the ownership of the farm with Don, a resident of Nevada. Don files a suit against Paula in Iowa. Regarding this suit, Iowa has

A) diversity jurisdiction.
B) in personam jurisdiction.
C) in rem jurisdiction.
D) no jurisdiction.

Question 44

Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Lara, through her ad, has

A) a commercial cyber presence in Missouri.
B) conducted substantial business with Missouri residents.
C) general maximum contact with Missouri.
D) solicited virtual business in Missouri.

Question 45

Sam, a citizen of Tennessee, files a suit in a Tennessee state court against United Sales Corporation, a Wyoming company that does business in Tennessee. The court has original jurisdiction, which means that

A) the case is being heard for the first time.
B) the court does not have concurrent jurisdiction.
C) the court has standing.
D) the court has venue.

Question 46

Liu files a suit against Macro Sales, Inc., in a New Jersey state court based on a Web site through which New Jersey residents can do business with Macro. The court will most likely exercise jurisdiction over Macro if the interactivity of the site is seen as

A) a "substantial enough" connection with the state.
B) "downloading" from the state.
C) not connected with the state.
D) "uploading" to the state.

Question 47

Milo files a suit against Nik in an Ohio state court, noting that Nik op?erates a Web site through which Ohio residents have done substan?tial business with him. The court is most likely to exercise jurisdiction over Nik if Milo's claim arises from

A) anything an Ohio resident has done.
B) Nik's Web site activities.
C) nothing an Ohio resident has done.
D) something other than Nik's Web site.

Question 48

Lee files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lee and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio

A) has a sufficient stake in the matter.
B) has jurisdiction.
C) has sufficient minimum contacts with the parties.
D) is a more convenient location to hold the trial.

Question 49

Child's Play, Inc., sells a toy with a dangerous defect. Drew buys the toy for his son but discovers the defect before the child is injured. Drew files a suit against Child's Play. The firm's best ground for dismissal of the suit is that Drew does not have

A) certiorari.
B) jurisdiction.
C) standing to sue.
D) sufficient minimum contacts.

Question 50

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Alpha Company files a suit against Beta, Inc., in a Colorado court with gen?eral jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The differ?ence between general and limited ju?risdiction is

A) the subject matter of the cases that the courts can decide.
B) whether a case is being heard for the first time.
C) whether a suit is filed against a single individual or many people.
D) whether a suit is filed by a citizen or by a business.

Question 51

Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is

A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Question 52

Stan, a citizen of Texas, wants to file a suit against Uma, a citizen of Virginia. Their diversity of citizenship may be a basis for

A) any court to exercise in rem jurisdiction.
B) a federal district court to exercise original jurisdiction.
C) a U.S. court of appeals to exercise appellate jurisdiction.
D) the United States Supreme Court to issue a writ of certiorari.

Question 53

LCD TV Company, a firm in Minnesota, advertises on the Web. A court in North Dakota would be most likely to exercise jurisdiction over LCD if the firm

A) conducted substantial business with North Dakota residents through its Web site.
B) interacted with any North Dakota resident through its Web site.
C) only advertised without interactivity at its Web site.
D) suddenly removed its ad from the Internet.

Question 54

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
Harry, a resident of Indiana, has an accident with Jane, a resident of Kentucky, while driving through that state. Jane files a suit against Harry in Kentucky. Regarding Harry, Kentucky has

A) diversity jurisdiction.
B) in personam jurisdiction.
C) in rem jurisdiction.
D) no jurisdiction.

Question 55

Miles files a suit against Nina. At the trial, each party's attorney pre?sents the party's case before a judge who hears the dispute and renders a le?gally binding decision. This is

A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Question 56

Fact Pattern 3-B2
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court.
The Ohio state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is

A) the judicial system.
B) the president of the United States.
C) the governor of Ohio.
D) the U.S. Congress.

Question 57

Boyd files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the United States Supreme Court to hear the case. The Court is

A) not required to hear the case.
B) required to hear the case because Cathy lost in a federal court.
C) required to hear the case because Cathy lost in a lower court.
D) required to hear the case because it is an appeal.

Question 58

The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores, Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does not hear the case. This

A) is a decision on the merits with value as a precedent.
B) indicates agreement with the Idaho court's decision.
C) means nothing.
D) means that the Idaho court's decision is the law in Idaho.

Question 59

Mary wins her suit against National Manufacturing Company. National's best ground for appeal is the trial court's interpretation of

A) the conduct of the witnesses during the trial.
B) the credibility of the evidence that Mary presented.
C) the dealings between the parties before the suit.
D) the law that applied to the issues in the case.

Question 60

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

A) certiorari.
B) jurisdiction.
C) standing.
D) sufficient minimum contacts.

Question 61

To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts

A) not at all.
B) until the ODR service has issued a decision.
C) with respect to any dispute arising between them.
D) with respect to this dispute only.

Question 62

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

A) Dick only.
B) Dick or EZ.
C) EZ only.
D) neither Dick nor EZ.

Question 63

Fact Pattern 2-A1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-A1. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the ad?vantages of

A) arbitration.
B) conciliation.
C) intervention.
D) mediation.

Question 64

Quik Results, Inc., a Maine corporation, makes and sells Power Up!, a weight-gain and muscle-building supplement. Orin, a citizen of New York, sees an ad for Power Up! in WorkOut magazine and buys it in New York City at a local health club. Within ten days of beginning to use Power Up!, Orin suffers internal injuries. Alleging that the injuries are caused by Power Up!, Orin files a suit against Quik in a New York state court. Quik asks the court to dismiss the suit on the ground that it does not have personal jurisdiction over Quik. What is the court most likely to rule and why?

Question 65

United, Inc., a U.S. firm, and Wallaby, Ltd., an Australian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between United and Wallaby over a dispute involving this contract may occur in

A) Australia only.
B) Australia or the United States, but not both.
C) Australia, the United States, or both.
D) the United States only.

Question 66

Transnational Corporation and UniShip, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having ju?ris?dic?tion may

A) monitor any arbitration until it concludes.
B) order an arbitrator to rule in a particular way.
C) order a party to bring the dispute to court.
D) order a party to submit to arbitration.

Question 67

Far Trade Company and Good Shipping. Inc., have their dispute re?solved in arbitration. The arbitrator meets with Far's representative to discuss the dispute outside the presence of Good's representative, before determining the award. If this meeting substantially prejudiced Good's rights, a court will most likely

A) do nothing.
B) review the merits of the dispute.
C) review the sufficiency of the evidence.
D) set aside the award.

Question 68

Jen files a suit against Kyle. 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

A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Question 69

Fact Pattern 2-A1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-A1. The least expensive method to resolve the dis?pute between Java and Kaffe may be

A) arbitration because the case will be heard by a mini-jury.
B) litigation because each party will pay its own legal fees.
C) mediation because the dispute will be resolved by a non-expert.
D) negotiation because no third parties are needed.

Question 70

Edie files a suit against Frank. If this suit is like most cases, it will be

A) dismissed during a trial.
B) dismissed or settled before a trial.
C) resolved only after a trial.
D) settled at a trial.

Question 71

Eager Workers, Inc., and Factory Assembly Company have their dispute resolved in arbitration. The arbitrator makes a mistake in a conclusion of law. This is a ground for a court to

A) do nothing.
B) review the merits of the dispute.
C) review the sufficiency of the evidence.
D) set aside the award.

Question 72

Molly files a suit against Nick. They meet, and each party's at?torney ar?gues the party's case before a judge and jury. The jury presents an advi?sory verdict, after which the judge meets with the parties to en?courage them to settle their dispute. This is

A) a mini-trial.
B) a summary jury trial.
C) court-ordered arbitration.
D) early neutral case evaluation.

Question 73

Consumer Sales Corporation and Dion agree to re?solve their dispute in arbitration. The arbitrator's decision is called

A) a conclusion of law.
B) a finding of fact.
C) an award.
D) a verdict.

Question 74

Sally and Tom disagree over the amount of money due under their con?tract. To avoid involving any third party in a resolution of the dispute, Sally and Tom might prefer to use the alternative dispute resolution method of

A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Question 75

Vince files a suit against Will. Vince and Will meet, and each party's at?torney 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 en?courage them to settle their dispute. This is

A) court-ordered arbitration.
B) early neutral case evaluation.
C) a mini-trial.
D) a summary jury trial.

Question 76

Jan and Kyle sign a contract that provides that if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely

A) hear the suit and then order the parties to arbitrate.
B) hear the suit without ordering the parties to arbitrate.
C) order relief without hearing the suit or compelling the parties to arbitrate.
D) order the parties to arbitrate.

Question 77

Owen, in Pennsylvania, and Quik Jobs, Inc., in Maryland agree to have their dispute resolved in arbitration according to the law of Virginia. This is a ground for a court to

A) do nothing.
B) review the merits of the dispute.
C) review the sufficiency of the evidence.
D) set aside the award.

Question 78

A clause in a contract between Timber Corporation, a U.S. firm, and Wang, Ltd., a Japanese firm, specifies that disputes over the con?tract will be adjudicated in the United States. This is

A) a domestic-dispute clause.
B) a forum-selection clause.
C) an adjudication clause.
D) an arbitration clause.

Question 79

Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of

A) certiorari.
B) jurisdiction.
C) standing.
D) venue.

Question 80

Fact Pattern 2-A1
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
Refer to Fact Pattern 2-A1. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of set?tling their dispute may be mediation because

A) the case will be heard by a mini-jury.
B) the dispute will eventually go to trial.
C) the process is not adversarial.
D) the resolution of the dispute will be decided an expert.