Deck 2: A: Courts and Alternative Dispute Resolution

Question 1

U.S.district courts have original jurisdiction in matters involving federal questions.

Answer 1

True

Question 2

A state court cannot exercise jurisdiction over property located within the state's boundaries regardless of the property owners' location.

Answer 2

True

Question 3

The United States Supreme Court can review any case decided by any of the federal courts of appeals.

Answer 3

True

Question 4

A mini-trial is a private proceeding in which each party's attorney ar?gues the party's case before the other party.

Question 5

Small claims courts are inferior state trial courts.

Question 6

A court's review of an arbitrator's award may be restricted.

Question 7

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 8

Mandatory arbitration clauses in employment contracts are generally enforceable.

Question 9

The executive branch is the final authority concerning the constitution?ality of a law.

Question 10

Most lawsuits are settled or dismissed before they go to trial.

Question 11

Courts of appeals conduct new trials in which evidence is submitted to the court and witnesses are examined.

Question 12

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers.

Question 13

Mediation is adversarial in nature.

Question 14

In mediation,the mediator proposes a solution that includes what com?promises are necessary to reach an agreement.

Question 15

A long arm statute permits a court to obtain jurisdic?tion over an out-of-state defendant.

Question 16

A choice-of-law clause designates the jurisdiction for the litigation of disputes arising under a contract.

Question 17

The verdict in a summary jury trial is binding.

Question 18

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

Question 19

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

Question 20

State courts are independent of federal courts.

Question 21

Owen,in Pennsylvania,and Quonset Structures,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 22

Seaside Resort,Inc. ,adopts an alternative dispute resolution (ADR)pro?gram.Tess,a current employee,signs an agreement under which arbi?tration is subject to "Seaside's rules,with the employee to bear all costs of the proceeding." When a dispute arises,Tess refuses to arbitrate.Seaside files a suit to compel arbitration.The court will most likely

A)order arbitration according to Seaside's rules.
B)order arbitration but suspend Seaside's rules.
C)refuse to order arbitration if a resolution of the dispute is clear.
D)refuse to order arbitration if Tess lacks the ability to pay.

Question 23

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 24

Massive Equipment Company and Wastewater Management Corporation agree in writing to submit a dispute to arbitration.In most circumstances,submission to arbitration is possible

A)for any commercial matter.
B)for no commercial matter.
C)only after a dispute arises.
D)only before a dispute arises.

Question 25

Kobe files a suit against Joanna.They meet,and each party's at?torney ar?gues the party's case before a judge and jury.The jury presents an ad?vi?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)early neutral case evaluation.
D)not a legitimate form of dispute resolution.

Question 26

Eager Workers Union and Factory Assembly Company have their dis?pute resolved in arbitration.The arbitrator makes a mistake in a conclu?sion 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 27

Jo files a suit against Lara in a Missouri state court.Lara's only connec?tion 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 28

Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor.Lacey 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 29

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 30

Milo files a suit against Otis.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)a mini-trial.
B)a summary jury trial.
C)litigation.
D)not a legitimate form of dispute resolution.

Question 31

Harvey,a resident of Indiana,has an accident with Janette,a resident of Kentucky,while driving through that state.Janette files a suit against Harvey in Kentucky.Regarding Harvey,Kentucky has

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

Question 32

Jackson files a suit against Lance.Before going to trial,the parties,with their attorneys,meet to try to resolve their dispute.A third party sug?gests or proposes a resolution,which the parties may or may not decide to adopt.This is

A)arbitration.
B)mediation.
C)negotiation.
D)not a legitimate form of dispute resolution.

Question 33

Pixie files a suit against Quiver.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 imposes a resolution on the par?ties.This is

A)arbitration.
B)mediation.
C)negotiation.
D)not a legitimate form of dispute resolution.

Question 34

Far Trade Company and Global Shipping.Inc. ,have their dispute re?solved in arbitration.The arbitrator meets with Far's representative to discuss the dispute outside the presence of Global's representative,be?fore determining the award.If this meeting substantially prejudiced Global'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 35

Kit loses her suit against Lou in a Minnesota state trial court.Kit ap?peals 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 36

A clause in a contract between Tall Timber Corporation,a U.S.firm,and Wang Woods,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 37

Lora is a resident of Illinois.Ned is a resident of Wisconsin.They dispute the ownership of a boat docked in a Michigan harbor.This diversity of citizenship could serve as a basis for

A)federal jurisdiction.
B)general jurisdiction.
C)limited jurisdiction.
D)state jurisdiction.

Question 38

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 39

Tyler,a citizen of Utah,files a suit in a Utah state court against Veritas Sales Corporation,a Washington state company that does business in Utah.The court has original jurisdiction,which means that

A)the case is being heard for the first time.
B)the court has a unique method of deciding whether to hear a case.
C)the court has unusual procedural rules.
D)the subject matter of the suit is interesting and new.

Question 40

Pan American Pancake House,Inc. ,a U.S.firm,and Wallaby Waffles,Ltd. ,an Australian firm,enter into a contract that does not have a forum-selection or choice-of-law clause.Litigation between Pan American 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 41

MicroWare hosts a Web site that advertises its software products,fea?tures upgrades and "patches" for its existing software products,and ac?cepts orders for the products from consumers throughout the world.Mary,who owns and operates Business Records,Inc,,a small bookkeep?ing and payroll business in Colorado,orders from the Web site a copy of MicroWare's Office Books software.Office Books is designed to help ac?countants and bookkeepers keep accurate business records.When Office Books is found to have a defect in its calculating program,MicroWare of?fers a patch on its Web site to fix the problem.Mary has already lost sev?eral customers because of the miscalculating defect,however,and files a suit against MicroWare in a Colorado state court.Can the court exercise jurisdiction over MicroWare? Why or why not?

Question 42

Worldwide Trucking Corporation files a suit in a state court against XL Service Company,and wins.XL appeals the court's decision,as?serting that the evidence presented at trial to support Worldwide's claim was such that no reasonable jury could have found for the plaintiff.There?fore,argues XL,the appellate court should reverse the trial court's de?ci?sion.May an appellate court ever reverse a trial court's findings with re?spect to questions of fact?