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CHAPTER 3THE JUDICIAL SYSTEM

TRUE/FALSE
1. A trial court generally has three judges who preside in a case.
ANS: F
TOP: trial court

PTS: 1

NAT: AACSB: Analytic

2. An appellate court's role is to take additional evidence after a trial has ended.
ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

3. The trial transcript, trial evidence, and appellate briefs are generally not available to the appellate
court.
ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

4. A brief is written by the trial judge.


ANS: F
TOP: briefs

PTS: 1

NAT: AACSB: Analytic

5. An appellate court reversal requires a unanimous vote by the reviewing judges.


ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

6. When a case is remanded, the lower court must conduct additional proceedings.
ANS: T
TOP: remand

PTS: 1

NAT: AACSB: Analytic

7. In 2008 the number of appeals to the United States Supreme Court dropped to under 6,000 cases for
the first time in years.
ANS: F
PTS: 1
TOP: Supreme Court

NAT: AACSB: Analytic

8. A plaintiff cannot begin a lawsuit until the court finds there is good cause for filing the suit.
ANS: F
TOP: trial court

PTS: 1

NAT: AACSB: Analytic

9. The party who appeals a decision is called an appellant.


ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

10. In personam jurisdiction is the authority of a court over the subject matter of the case.

ANS: T
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

11. Decisions of the federal district court are reported in the Federal Reporter.
ANS: F
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

12. Federal district courts are courts of original jurisdiction.


ANS: T
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

13. There are 13 federal judicial circuits.


ANS: T
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

14. Decisions of the U.S. Courts of Appeal are reported in the Federal Supplement.
ANS: F
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

15. The U.S. Court of Appeals is a court of original jurisdiction.


ANS: F
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

16. The U.S. Supreme Court has no original jurisdiction.


ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

17. The opinions of the U.S. Supreme Court must be unanimous.


ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

18. State supreme court decisions can be appealed to the U.S. Supreme Court.
ANS: T
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

19. Small claims courts are state courts of original jurisdiction in which minimal damage suits are tried.
ANS: T
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

20. Regional reporters carry the opinions of state appellate and supreme court decisions.
ANS: T
TOP: reporters

PTS: 1

NAT: AACSB: Analytic

21. A court that has subject matter jurisdiction over a case also has in personam jurisdiction over the case.
ANS: F
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

22. Long-arm statutes give courts power to take jurisdiction over parties in other states in some cases.
ANS: T
TOP: long arm

PTS: 1

NAT: AACSB: Analytic

23. The doctrine of "minimum contacts" is one of fairness in extending in personam jurisdiction.
ANS: T
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

24. On appeal, respondent is another name for appellant.


ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

25. All states have a general trial court of original jurisdiction.


ANS: T
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

26. The principle of stare decisis requires that all similar cases be decided the same way.
ANS: F
TOP: stare decisis

PTS: 1

NAT: AACSB: Analytic

27. A court can have in personam jurisdiction over an out-of-state defendant by the defendant's consent.
ANS: T
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

28. Federal district courts are the general trial courts of the federal system.
ANS: T
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

29. An appellate court has the authority to order a new trial.


ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

30. In 2009 the only circuit to be reversed by the Supreme Court 100% of the time was the Nineth Circuit.
ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

31. The International Court of Justice can compel parties to appear before it.
ANS: F
PTS: 1
TOP: international courts

NAT: AACSB: Analytic

32. The federal courts in the United States have jurisdictional authority over all cases, parties, and disputes
in which a U.S. firm is involved.
ANS: F
PTS: 1
TOP: international courts

NAT: AACSB: Analytic

33. Generally, three judges review a case at the court of appeals level in both the state and federal levels.
ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

34. A case that is remanded requires further procedures.


ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

35. If any mistake is made in a case, it is reversible error.


ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

36. State supreme courts have original jurisdiction in some circumstances.


ANS: T
TOP: courts

PTS: 1

NAT: AACSB: Analytic

37. Diversity of citizenship and a claim of $75,000 or more and a federal question are required for a
federal district court to take jurisdiction on a case.
ANS: F
TOP: courts

PTS: 1

NAT: AACSB: Analytic

38. A party can raise new evidence in a case through its brief.
ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

39. An appellate court can require that a new trial be held.


ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

40. The Pecoraro case illustrates that if a person moves among states to commit crimes, jurisdiction
becomes so unclear that no court will hear the case.
ANS: F
TOP: courts

PTS: 1

NAT: AACSB: Analytic

41. A reversible error occurs only when evidence rules were violated.
ANS: F
TOP: courts

PTS: 1

NAT: AACSB: Analytic

42. Justice Sonia Sotomayor is the first Hispanic justice on the Supreme Court and the fifth female justice.
ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

43. Oral arguments are not allowed in appellate courts.


ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

44. A brief is a witness's testimony at trial.


ANS: F
TOP: briefs

PTS: 1

NAT: AACSB: Analytic

45. In U.S. v. Nichols a federal judge ruled that the attorney-client privilege would apply to officers of a
corporation unless the corporations lawyer made it clear that he or she was representing only the
corporation.
ANS: T
TOP: courts

PTS: 1

NAT: AACSB: Analytic

46. The U.S. Courts of Appeal use a writ of certiorari process for appeals.
ANS: F
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

47. Specialty courts exist in both the state and federal systems.
ANS: T
TOP: courts

PTS: 1

NAT: AACSB: Analytic

48. A case in which the constitutionality of the USA Patriot Act is challenged would be brought in state
court.
ANS: F
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

49. The Supreme Court grants certiorari in about 25% of the cases that are appealed to it. Of that number,
nearly all have oral arguments and receive a written opinion from the Court.
ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

50. An en banc hearing is one in which all the judges participate.


ANS: T
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

51. Bankruptcy courts are the only courts in the state or federal system that handle bankruptcy declarations
and proceedings.
ANS: T
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

52. Justices of the U.S. Supreme Court are nominated by the President of the United States and are
confirmed by Congress.
ANS: F
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

53. U.S. Supreme Court cases are generally heard by three judges.
ANS: F
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

54. U.S. Supreme Court opinions are reported in three different reporter series.
ANS: T
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

55. True small claims courts do not permit lawyers to represent the parties in the proceedings.
ANS: T
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

56. If a plaintiffs home country provides an adequate remedy for a wrong, the case cannot be heard in the
United States.
ANS: T
PTS: 1
TOP: international courts

NAT: AACSB: Analytic

MULTIPLE CHOICE
1. A reversible error is:
a. any mistake made in a case.
b. one that might have affected the outcome of a case.
c. determined during a motion for summary judgment.
d. none of the above
ANS: B
PTS: 1
TOP: judicial review

NAT: AACSB: Analytic

2. Case precedent is:


a. always followed.
b. followed if it is within the state.
c. examined in each case and is always followed.
d. part of the doctrine of stare decisis.
e. none of the above
ANS: D
TOP: precedent

PTS: 1

3. When a case is remanded:


a. it is affirmed.
b. it is sent back to the trial court.
c. it is completed.
d. precedent is not being followed.

NAT: AACSB: Analytic

e. none of the above


ANS: B
PTS: 1
TOP: judicial review

NAT: AACSB: Analytic

4. Dicta is the:
a. rule of law in a case opinion.
b. case cite.
c. discussion of a decision.
d. precedent in a case.
e. none of the above.
ANS: C
TOP: precedent

PTS: 1

NAT: AACSB: Analytic

5. Precedent is not followed when:


a. the facts of a case can be distinguished.
b. a court believes that a change of law is socially or morally mandated.
c. technology changes.
d. all of the above
ANS: D
TOP: precedent

PTS: 1

NAT: AACSB: Analytic

6. An attorney:
a. must reveal a client's confession of a crime.
b. cannot represent a guilty party.
c. must see that his/her client's rights are protected.
d. can violate the law to protect a client.
ANS: C
PTS: 1
TOP: attorney-client privilege

NAT: AACSB: Analytic

7. Which of the following names apply to the party who appeals the trial court decision?
a. respondent
b. appellant
c. appellee
d. none of the above
ANS: B
PTS: 1
TOP: appellate process

NAT: AACSB: Analytic

8. In personam jurisdiction:
a. refers to jurisdiction over the parties in a case.
b. can be based on the subject matter of the case.
c. is based on constitutional standards of residence.
d. is only applied in federal courts.
ANS: A
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

9. Which of the following is the general trial court of the federal system?
a. federal district court
b. Court of Claims
c. U.S. Court
d. none of the above

ANS: A
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

10. In which of the following cases would there be federal subject matter jurisdiction?
a. a case in which the Justice Department is prosecuting for criminal violations of the
Sherman Act
b. a case in which a Texas resident is suing a Wisconsin company for a refund of $1,000.00
c. a case in which two Arizona partners are suing each other
d. a case in which the state attorney general is prosecuting a corporation for violation of state
antitrust laws
ANS: A
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

11. Which of the following reports the opinions of federal district courts?
a. Federal Supplement
b. Federal Reporter
c. Federal district court opinions are not reported.
d. none of the above
ANS: A
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

12. How many U.S. Courts of Appeal are there?


a. nine
b. at least one for every state
c. thirteen
d. none of the above
ANS: C
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

13. How many federal district courts are there?


a. nine
b. at least one for every state
c. thirteen
d. none of the above
ANS: B
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

14. A writ of certiorari:


a. is issued for every case appealed to the U.S. Supreme Court.
b. applies only to cases of original jurisdiction.
c. is an order issuing a decision to hear a case.
d. none of the above
ANS: C
PTS: 1
TOP: judicial review

NAT: AACSB: Analytic

15. A small claims court:


a. is a court where diversity cases are heard.
b. is a court where no attorneys are used.
c. is a general jurisdiction court.
d. is part of the federal system.

ANS: B
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

16. Regional reporters:


a. are for the federal system.
b. include the opinions of state supreme courts.
c. include the opinions of the U.S. Supreme Court.
d. are the same as the federal reporters.
ANS: B
TOP: reporters

PTS: 1

NAT: AACSB: Analytic

17. Which of the following would not be a cite for a U.S. Supreme Court opinion?
a. 411 U.S. 292
b. 93 S. Ct. 1011
c. 43 L.Ed 2d 33
d. 798 F.2d 1214
ANS: D
TOP: reporters

PTS: 1

NAT: AACSB: Analytic

18. In the Pecoraro case, jurisdiction was:


a. in South Dakota for the Diocese and Nebraska for the other parties.
b. in South Dakota for all the parties.
c. in South Dakota of all parties but the Diocese who could be sued in Nebraska.
d. in Nebraska for all the parties.
ANS: A
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

19. In which of the following courts would a trial for violation of the Foreign Corrupt Practices Act be
held?
a. state trial court
b. federal district court
c. U.S. Supreme Court since the case involves foreign jurisdictions
d. none of the above
ANS: B
TOP: Webster

PTS: 1

NAT: AACSB: Analytic

20. The minimum amount required for a federal diversity suit is:
a. $10,000.
b. $50,000.
c. $75,000.
d. There is no minimum amount if there is diversity.
ANS: C
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

21. Which president nominated Sonia Sotomayor to the United States Supreme Court?
a. Clinton
b. Obama
c. H.W. Bush
d. G.W. Bush

ANS: B
PTS: 1
TOP: supreme court

NAT: AACSB: Analytic

22. Which case recently held that corporate officers would be covered under attorney-client privilege with
the corporations attorney unless the corporate attorney specifically said he or she represented only the
corporation?
a. U.S. v. Sony
b. U.S. v. Nicholas
c. U.S. v. Pecoraro
d. U.S. v.Altria
ANS: B
TOP: privilege

PTS: 1

NAT: AACSB: Analytic

23. Which of the following is not a specialized court in the federal system?
a. tax court
b. bankruptcy court
c. probate court
d. All of the above are specialty courts in the federal system.
ANS: C
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

24. Long-arm statutes:


a. give state courts automatic jurisdiction over out-of-state defendants.
b. have been ruled unconstitutional.
c. are simply procedural statutes that still require ?minimum contacts? for use.
d. none of the above
ANS: C
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

25. At the U.S. Court of Appeals:


a. there is a trial by jury.
b. there are three judges.
c. witnesses are permitted to testify.
d. all of the above
ANS: B
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

26. To initiate a lawsuit in the federal court system, the plaintiff would file a complaint in a:
a. federal district court.
b. U.S. Court of Appeals.
c. U.S. Court of Claims.
d. U.S. Tax Court.
ANS: A
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

27. Emma Samuels is a resident of St. Johnsbury, Vermont. She was injured in an auto accident when a
resident of Burlington, Vermont, struck her car from behind. Emma wishes to bring suit to recover her
medical costs and the costs of repair to her car. Emma's suit:
a. is properly brought in federal court in Vermont because the drivers were residents of
different cities.

b. is properly brought in Vermont's general trial court.


c. is properly brought in U.S. Court of Claims since two U.S. citizens were involved.
d. none of the above
ANS: B
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

28. In the citation 501 F.3d 29, the case can be found on what page?
a. 501
b. 3
c. 29
d. There is not enough information given to answer the question.
ANS: C
TOP: citations

PTS: 1

NAT: AACSB: Analytic

29. Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his parts from outof-state suppliers. He orders watch faces from a supplier in Escondido, California. The supplier does
not have a sales force but relies on catalogues shipped to watch dealers throughout the country as his
means of marketing. Ralph installed several of the suppliers' watch faces on his customers' watches. A
strange chemical reaction between perspiration and the faces of the watches caused Ralph's customers
to develop rashes and nausea, with some requiring hospitalization. Ralph wishes to bring suit to
recover damages ($75,000) from the Escondido supplier. Which of the following statements is true?
a. Ralph must bring suit in California to gain jurisdiction over the supplier.
b. Ralph has a diversity action that can be brought in federal court.
c. Ralph will not be able to bring suit in Arizona because there are no contacts in the state.
d. none of the above
ANS: B
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

30. Which of the following suits could be properly heard in federal district court?
a. a suit between two contracting parties in one state over a UCC interpretation question
b. a suit for damages of $50,000 between a citizen of Oregon and a citizen of Washington
c. a suit challenging the constitutionality of a state's death penalty statute
d. all of the above
ANS: C
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

31. Small claims courts are:


a. federal specialty courts.
b. also known as probate courts.
c. also known as courts of claim.
d. part of the state court system.
ANS: D
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

32. Ralph Watkins, owner of The Steak Pit restaurant in Billings, Montana, is suing Western Cornfed Beef,
a Kansas City, Kansas, supplier, for breach of contract. Watkins refuses to pay $22,000 for steaks he
claims were never delivered. Where will Watkins properly file suit?
a. federal district court in Montana
b. federal district court in Kansas
c. state court in Montana

d. state court in Kansas


ANS: C
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

33. Cosco Chemical, a U.S. corporation, operates a fertilizer plant in Honduras. An explosion at the plant
killed 30 workers and injured 573 residents from the surrounding areas. Lawyers for the victims and
their families have brought suit in federal district court in Texas, Cosco's state of incorporation and
base of operations. The lawyers maintain the suits should be heard in the United States under U.S.
standards. Under the law in Honduras, the greatest amount of compensation each victim could recover
would be $400. The suit:
a. can be properly heard in U.S. federal district court in Texas.
b. must be dismissed for lack of a cause of action.
c. must be returned to the courts in Honduras.
d. can only be heard in the International Court of Justice.
ANS: C
PTS: 1
TOP: international

NAT: AACSB: Analytic

34. Sandra Laughlin is a reporter for the Philadelphia Tribune. In an article in the Tribune about Michael
Jackson, a singer and resident of California, Laughlin wrote an inaccurate statement about the singer's
relationship with actress Brooke Shields. The Philadelphia Tribune is a Pennsylvania newspaper
owned by a Pennsylvania corporation. If Jackson wishes to file a libel suit (seeking $1 million in
damages) against Laughlin and the Tribune, the suit:
a. could be properly brought in federal district court.
b. must be brought in California.
c. must be brought in a state court.
d. none of the above
ANS: A
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

35. ValuJet, Inc. is an airline based in Florida. The airline flies from Florida locations to Atlanta to permit
passengers to make connections to other airlines at that major hub. A ValuJet plane crashed just outside
of Orlando, Florida, killing all 110 occupants aboard the flight. Among the 110 occupants was a family
of 4 from Ohio, returning home from a Florida vacation. If the family's survivors wish to file suit
against ValuJet, where would a court have jurisdiction over ValuJet?
a. Ohio
b. Florida
c. Delaware
d. none of the above
ANS: B
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

36. Which of the following is not a court of limited jurisdiction?


a. probate court
b. small claims court
c. federal district court
d. All of the above are limited jurisdiction courts.
ANS: C
TOP: jurisdiction

PTS: 1

37. Stare decisis is a Latin term meaning:

NAT: AACSB: Analytic

a.
b.
c.
d.

"equitable remedy".
"let the decision stand".
"private decision".
"Congressional action".

ANS: B
TOP: stare decisis

PTS: 1

NAT: AACSB: Analytic

38. During the criminal trial for former Governor Fife Symington of Arizona, an elderly member of the
jury told the judge that she felt pressured by the other jurors to find him guilty. The judge removed the
woman from the jury and Governor Symington was convicted. Which of the following describes the
likely result if the governor appeals?
a. There is no reversible error because jury deliberations are not part of the trial or evidence.
b. There is a reversible error because of the possible prejudice to the governor in the
dismissal of the juror.
c. Appellate courts cannot reverse on questions about jury deliberations.
d. There can be no reversal of the case absent some error in testimony or jury instructions.
e. none of the above
ANS: B
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

39. In which system are bankruptcy courts located?


a. Federal court system
b. State court system
c. State lesser court system
d. Municipal courts
e. none of the above
ANS: A
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

40. Which of the following courts is not a court of original jurisdiction?


a. U.S. Supreme Court
b. City court
c. Federal courts of appeals
d. Probate court
e. All of the above courts have some form of original jurisdiction.
ANS: D
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

41. Sarah Sajak was sexually harassed at work. She filed a claim with the EEOC under Title 42 of the
United States Code. The EEOC has given her a right to sue letter, a requirement for her to be able to
bring suit for damages for the harassment. In which court must Sarah file her claim?
a. State trial court
b. Federal administrative court
c. Federal district court
d. Federal court of appeals since the agency has heard the case
e. none of the above
ANS: C
PTS: 1
TOP: federal courts
42. If a case is reversed and remanded, it:

NAT: AACSB: Analytic

a.
b.
c.
d.
e.

is dismissed with no further proceedings.


is reversed with no further proceedings.
requires additional hearings or determinations at the trial court level.
means that the lower court acted unconstitutionally.
none of the above

ANS: C
PTS: 1
TOP: appellate court

NAT: AACSB: Analytic

43. Which label is appropriate for the party appealing a case?


a. respondent
b. defendant
c. appellant
d. either a or c
ANS: C
PTS: 1
TOP: judicial review

NAT: AACSB: Analytic

44. Which of the following is an example of a reversible error?


a. misapplication of the law by the judge
b. refusal to allow material testimony
c. trial publicity
d. a and b only
ANS: D
PTS: 1
TOP: judicial review

NAT: AACSB: Analytic

45. The U.S. Supreme Court grants certiorari:


a. when state courts do not agree on a decision in similar fact patterns.
b. when circuit courts do not agree on a decision in similar fact patterns.
c. in all cases.
d. only on cases tried in federal court.
ANS: B
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

46. During the trial of Dennis Kozlowski, former CEO of Tyco, a jurors identity was revealed and her
picture was printed in two newspapers with stories that depicted her as the holdout in the deliberations.
The juror received a threat on her life. Requiring the juror to continue and deliberate in these
circumstances:
a. is reversible error.
b. is standard procedure.
c. is outlawed by in personam jurisdiction.
d. none of the above
ANS: A
PTS: 1
TOP: reversible error

NAT: AACSB: Analytic

47. Smittys is a bait and tackle shop near Lake of the Ozarks, Missouri, owned by Red Smith. Smittys
has a website, www.smittys.com. Smittys Bait Shop is located in the Adirondacks in New York,
owned by Buzz Smith, who also runs a catalogue business. When Buzz tried to get the website,
www.smittys.com, for use with his catalogue sales, he discovered Smittys of Missouri. He filed suit in
federal district court in New York for infringement. Everyone will go to the site and think I dont have
catalogue merchandise! Ill lose business. Red says, Im in Missouri. How could anyone be
confused? And, I dont sell by catalogue or the Internet. And, Im not going to New York to defend a
pointless lawsuit.
a. Red is correct, New York has no jurisdiction over him.
b. Buzz is correct. Reds Internet site subjects him to New York jurisdiction.
c. Neither is correct, the case belongs in state court.
d. none of the above
ANS: A
PTS: 1
TOP: in personam jurisdiction

NAT: AACSB: Analytic

48. Xcruise.com is an Internet company that sells discount cruises over the Internet to customers
throughout the United States. Xcruise.com has one office, located in Fargo, North Dakota. All of
Xcruise.coms employees, equipment and boats are located in either Miami or Libya. The Bottonskis,
residents of Virginia, bought two first-class tickets on Xcruise.coms Alaska cruise. Mrs. Bottonski
was injured when she fell on a wet floor near the dinner buffet. What court is likely to have jurisdiction
if Mrs. Bottonski brings suit to recover her $123,000 in medical bills?
a. Virginia federal district court
b. no court in the U.S.; Libya has jurisdiction
c. state court only in North Dakota
d. federal district court in North Dakota or Florida
ANS: D
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

49. An appeal of an IRS decision against you on your tax return would be heard in:
a. state court.
b. tax court.
c. Federal District Court.
d. U.S. Court of Appeal.
ANS: B
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

50. The U.S. Department of Defense (DOD) is bringing suits against several contractors in Iraq who are
alleged to have paid kickbacks to military personnel in order to win contracts. The DOD wants
portions of the contract prices paid refunded by the contractors. The DOD suits against the contractors:
a. must be heard in the U.S. Supreme Court.
b. will be heard in the military courts of justice.
c. will be appellate level case trials.
d. will be heard in federal district court or the court of claims.
ANS: D
PTS: 1
TOP: federal courts

NAT: AACSB: Analytic

51. Mad Hatters, Inc. is a costume store based in Navajo County, Arizona. It has stores in Navajo,
Maricopa, Pima and Pinal counties. Xeon Corporation entered into a contract for Mad Hatters to
furnish 75 costumes for an ad campaign. Xeon has its headquarters in Maricopa County, but has
offices in Pima and Navajo Counties. Xeon has failed to pay for the costumes. Mad Hatters has
brought suit in Superior Court, the trial court for Arizona. The county in which the suit is held is a
question of:
a. venue.
b. fact.
c. federal jurisdiction.
d. none of the above
ANS: A
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

52. Which of the following is NOT true of long-arm statutes?


a. they are state jurisdiction statutes
b. they are not subject to federal review
c. they vary from state-to-state
d. all of the above are not true
ANS: B
PTS: 1
TOP: in personam jurisdiction

NAT: AACSB: Analytic

53. Which of the following is an issue in subject matter jurisdiction determinations?


a. the residence of the defendant
b. the nature of the controversy
c. the amount of the controversy
d. all of the above are issues in subject matter jurisdiction
ANS: D
TOP: jurisdiction

PTS: 1

NAT: AACSB: Analytic

54. A traffic court:


a. is a court of federal jurisdiction.
b. is a court of limited jurisdiction.
c. is an appellate court from small claims.
d. both a and b
ANS: B
TOP: state courts

PTS: 1

NAT: AACSB: Analytic

55. Which is not part of the National Reporter System?


a. Federal Supplement
b. Pacific Reporter
c. State supreme court decisions
d. both a and c
ANS: A
PTS: 1
TOP: court systems

NAT: AACSB: Analytic

56. A lawyer who knows that his client is guilty of a breach of contract:
a. must disclose the information to the court.
b. commits an ethical violation by representing the client.
c. must keep that information confidential.
d. both a and b

ANS: C
PTS: 1
TOP: attorney-client privilege

NAT: AACSB: Analytic

ESSAY
1. Mrs. Phillips purchased a glass baking dish manufactured by Anchor Hocking Glass. She purchased
the dish at a Thrifty Drug Store in Mesa, Arizona. Anchor Hocking manufactures its glassware in Ohio
and distributes its products nationally. When Mrs. Phillips removed the baking dish from her oven
(while making a casserole), the dish exploded and Mrs. Phillips was injured. Mrs. Phillips' attorney
wants to bring a product liability lawsuit against Anchor Hocking in Arizona. Anchor Hocking does
not believe it can be forced to defend a lawsuit in Arizona since it has no offices there. Can the Arizona
courts take jurisdiction?
ANS:
In Phillips v. Anchor Hocking Glass, the Arizona Courts were permitted to take in personam
jurisdiction over Anchor Hocking since: (1) Anchor Hocking distributed its products nationally, (2) the
evidence and plaintiff were in Arizona, and (3) it was not unfair to require Anchor Hocking to defend a
suit in Arizona since its products were there.
413 P.2d 732 (1966).
PTS: 1

NAT: AACSB: Analytic

TOP: jurisdiction

2. Diagram a typical state court system.


ANS:
State Supreme Court
State Court of Appeals
General Trial Court
Lesser courts
Small claims
PTS: 1

Justice of
the Peace

City courts

NAT: AACSB: Analytic

Probate
courts
TOP: state courts

3. Allegheny Airlines is incorporated in Delaware and has flights throughout the states of Pennsylvania,
Ohio, West Virginia, New Jersey, New York, and Connecticut, and also in Washington, D.C. Wayne
Jones, a resident of Las Vegas, Nevada, is severely injured when an Allegheny flight carrying him
from Pittsburgh to Johnstown, Pennsylvania, crashes on landing. Jones has damages of over $250,000.
In what court can Jones properly bring suit and where?
ANS:
There is diversity and a claim in excess of $50,000, so federal district court is appropriate. The location
is either Pennsylvania (site of the crash) or Delaware (principal place of business). Allegheny could
not be required to defend a lawsuit in Nevada since it has no contacts there.
PTS: 1

NAT: AACSB: Analytic

TOP: federal courts

4. Discuss the implications of the federal judges ruling in U.S. v. Nicholas.

ANS:
In Nicholas the judge held that the attorney-client privilege would extend to the corporations officers
unless the corporate attorney made it clear that the corporate attorney only represented the corporation.
Some of the implications are the following: when and how often does the corporate attorney have to
state this; can the corporate attorney intentionally not state this - even when it is true - to protect the
officers; can the officers plead ignorance of such a statement; can the officers intentionally be
ignorant of such a statement; and what is the potential impact on the corporation and its shareholders
because of this.
PTS: 1

NAT: AACSB: Analytic

TOP: privilege

5. Give five reasons why a court may choose not to follow precedent.
ANS:
(1)
Cases are factually distinguishable.
(2)
Quality of precedent - may be from another state.
(3)
Changes in technology - e.g., Sony case in Chapter 1.
(4)
Moral and/or social values change - e.g., abortion.
(5)
Changes in society's needs - e.g., searches at airports needed because of increased
hijackings.
PTS: 1

NAT: AACSB: Analytic

TOP: precedent

6. Timberline Lumber, Inc., sued Teal Developers, Inc., because Teal had failed to pay a $43,000 bill
owed to Timberline. Both companies are incorporated in Montana and operate only in Montana.
Timberline lost at the trial and now wants to appeal the decision. Answer the following questions:
a. What court would have jurisdiction over the suit?
b. Who is the plaintiff? Who is the defendant?
c. On appeal, who is the appellant?
d. What grounds would cause the appellate court to reverse?
ANS:
The case would be brought in the general trial court in Montana. Timberline is the plaintiff and Teal is
the defendant. On appeal, Timberline is the appellant. The trial court must have committed a reversible
error such as admitting evidence that should not have been admitted or giving incorrect jury
instructions or allowing a biased juror to participate.
PTS: 1

NAT: AACSB: Analytic

TOP: trial court

7. Gretta Grietham, a Michigan resident, purchased investment bonds from Lincoln Savings and Loan.
Lincoln experienced some setbacks and has now been taken over by the Resolution Trust Corporation
of the federal government. Gretta's bonds are now worthless (she purchased $12,000 of the bonds).
Gretta's attorney has advised her that she probably has a chance of recovery from the officers and
directors for securities fraud under the 1934 Securities Exchange Act. Lincoln is a California
corporation doing business in California with investors all over the country. Where and in what court
could Gretta bring her suit?
ANS:
Grietham has a federal statutory claim and could bring suit in federal district court. She need not have
diversity nor the $75,000 for a right based on federal law.
PTS: 1

NAT: AACSB: Analytic

TOP: federal courts

8. List international courts with consensual jurisdiction.


ANS:
International Court of Justice (ICJ) (UN)
Court of Justice of European Communities
European Court of Human Rights
Inter-American Court of Human Rights
PTS: 1

NAT: AACSB: Analytic

TOP: international courts

9. List three ways your case would properly be within the jurisdiction of the federal district court.
ANS:
United States is a party.
There is a federal question.
There is diversity of citizenship and claims of damages in excess of $75,000.
PTS: 1

NAT: AACSB: Analytic

TOP: jurisdiction

10. Name three courts in the federal system that are not courts of general jurisdiction.
ANS:
Bankruptcy court
Court of claims
Indian Tribal Court
PTS: 1

NAT: AACSB: Analytic

TOP: federal courts

11. Adrienne Zhang, a resident of Beijing, China, took provera, a hormone, through tablets called Pro-V
plus, manufactured by Eli-Shiley, a U.S. firm. Zhang experienced heart damage and wishes to recover.
Where is her suit against Eli-Shiley properly brought and which law applies?
ANS:
In China, if an adequate product liability remedy exists. If not, in the U.S. with U.S. standards
applying.
PTS: 1

NAT: AACSB: Analytic

TOP: jurisdiction

12. Jane DeRonnee had carpet installed in her home and the carpet is not flat to the floor. In fact, it has so
many waves that she and her friends and guests have been tripping over certain areas of her home. She
has tried to have the carpeting fixed and has asked both the carpet retailer and the installer to solve the
problem They have both refused. Walk Jane through the correct court system for her case. Explain to
her where and how to take her case. Also explain to her what happens if she loses a case along the way.
ANS:
Jane could take her case to small claims court where citizens can represent themselves. If she does not
win there, she generally has a right to an appeal to the general trial court in the state for a trial de novo
on the issues. If she loses at the trial court level, she can appeal the decision to the state court of
appeals. If she loses there, she can petition to have her case heard by the state supreme court. It may or
may not take the case on appeal. And should she lose at the state supreme court level, there is the U.S.
Supreme Court. However, we should be honest with Jane. It is unlikely that the U. S. Supreme Court
will take up her faulty carpet case. It is neither a social issue question or one that has produced a
conflict in the circuits, the two general reasons for the U.S. Supreme Court to hear a case.

PTS: 1
NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: court systems
13. When would a business selling merchandise over the Internet be required to defend a lawsuit in a state
in which it had no offices?
ANS:
Something more than Internet contact is needed to subject a cyberspace company to the jurisdiction of
courts in the states where it has customers: the presence of inventory, property ownership, or the
presence of salespeople would be sufficient.
PTS: 1

NAT: AACSB: Analytic

TOP: jurisdiction

14. Describe the role of the London Commercial Court.


ANS:
The London Commercial Court is a longstanding and respected court of arbitration. This court is
chosen by many businesses for resolution dispute because of its experience as well as its understanding
of commerce and commercial transactions.
PTS: 1

NAT: AACSB: Analytic

TOP: international courts