Cengage Advantage Books Foundations of The Legal Environment of Business 3rd Edition Jennings Test Bank 1

Solution Manual for Cengage Advantage Books Foundations of
the Legal Environment of Business 3rd Edition by Jennings ISBN

130511745X 9781305117457
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Chapter 03 The Court System and Dispute Resolution
TRUEFALSE
1. An appellate court's role is to take additional evidence after a trial has ended.
(A) True
(B) False
Answer : (B)
2. The trial transcript, trial evidence, and appellate briefs are generally not available to the appellate
court.
(A) True (B)
False
Answer : (B)
3. A brief is written by the trial judge.
(A) True
(B) False
Answer : (B)
4. An appellate court reversal requires a unanimous vote by the reviewing judges.
(A) True
(B) False
Answer : (B)
5. When a case is remanded, the lower court must conduct additional proceedings.
(A) True
(B) False
Answer : (A)
6. A plaintiff cannot begin a lawsuit until the court finds there is good cause for filing the suit.
(A) True
(B) False
Answer : (B)
7. The party who appeals a decision is called an appellant.
(A) True
(B) False
Answer : (A)
8. In personam jurisdiction is the authority of a court over the subject matter of the case.
(A) True
(B) False
Answer : (B)
9. Decisions of the federal district court are reported in the Federal Reporter.
(A) True
(B) False
Answer : (B)
10. A lawsuit begins with an answer which is closely followed by discovery.
(A) True
(B) False
Answer : (B)
11. There are 13 federal judicial circuits.
(A) True
(B) False
Answer : (A)
12. Subject matter jurisdiction must be established in the complaint.
(A) True
(B) False
Answer : (A)
13. Every trial has a jury to decide it for the parties.
(A) True
(B) False
Answer : (B)
14. State supreme court decisions can be appealed to the U.S. Supreme Court.
(A) True
(B) False
Answer : (A)
15. Arbitration is merely mediation that is forced upon one party.
(A) True
(B) False
Answer : (B)
16. A court that has subject matter jurisdiction over a case also has in personam jurisdiction over
the case.
(A) True (B)
False
Answer : (B)
17. Long-arm statutes give courts power to take jurisdiction over parties in other states in some
cases.
(A) True (B)
False
Answer : (A)
18. The doctrine of "minimum contacts" is one of fairness in extending in personam jurisdiction.
(A) True
(B) False
Answer : (A)
19. Voir dire helps to evaluate potential jurors for bias in a case.
(A) True
(B) False
Answer : (A)
20. The principle of stare decisis requires that all similar cases be decided the same way.
(A) True
(B) False
Answer : (B)
21. A court can have in personam jurisdiction over an out-of-state defendant by the defendant's
consent.
(A) True (B)
False
Answer : (A)
22. Federal district courts are the general trial courts of the federal system.
(A) True
(B) False
Answer : (A)
23. An appellate court has the authority to order a new trial.
(A) True
(B) False
Answer : (A)
24. Mediation is normally binding on the parties.
(A) True
(B) False
Answer : (B)
25. The International Court of Justice can compel parties to appear before it.
(A) True
(B) False
Answer : (B)
26. The federal courts in the United States have jurisdictional authority over all cases, parties, and
disputes in which a U.S. firm is involved.
(A) True (B)
False
Answer : (B)
27. Generally, three judges review a case at the court of appeals level in both the state and federal
levels.
(A) True (B)
False
Answer : (A)
28. A case that is remanded requires further procedures.
(A) True
(B) False
Answer : (A)
29. State supreme courts have original jurisdiction in some circumstances.
(A) True
(B) False
Answer : (A)
30. An appellate court can require that a new trial be held.

(A) True (B)
False
Answer : (A)
31. A reversible error occurs only when evidence rules were violated.
(A) True
(B) False
Answer : (B)
32. State supreme court decisions cannot be appealed.
(A) True
(B) False
Answer : (B)
33. Oral arguments are not allowed in appellate courts.
(A) True
(B) False
Answer : (B)
34. Depositions are only for pre-trial use.
(A) True
(B) False
Answer : (B)
35. The U.S. Courts of Appeal use a writ of certiorari process for appeals.
(A) True
(B) False
Answer : (B)
36. Specialty courts exist in both the state and federal systems.
(A) True
(B) False
Answer : (A)
37. A case in which the constitutionality of the USA Patriot Act is challenged would be brought in
state court.
(A) True (B)
False
Answer : (B)
38. Peremptory challenges are typically unlimited.
(A) True
(B) False
Answer : (B)
39. An en banc hearing is one in which all the judges participate.
(A) True
(B) False
Answer : (A)
40. Bankruptcy courts are the only courts in the state or federal system that handle bankruptcy
declarations and proceedings.
(A) True (B)
False
Answer : (A)
41. The ADR organization is the largest provider of arbitration services in the United States.
(A) True
(B) False
Answer : (B)
42. U.S. Supreme Court opinions are reported in three different reporter series.
(A) True (B)
False
Answer : (A)
43. True small claims courts do not permit lawyers to represent the parties in the proceedings.
(A) True
(B) False
Answer : (A)
44. If a plaintiff's home country provides an adequate remedy for a wrong, the case cannot be heard
in the United States.
(A) True (B)
False
Answer : (A)
45. A potential juror may be asked questions about some racial beliefs during voir dire.
(A) True
(B) False
Answer : (A)
46. The defendant in a trial does not have to release any evidence prior to the beginning of the trial.
(A) True
(B) False
Answer : (B)
47. The oral testimony of parties or witnesses that takes place outside the courtroom and before the
trial is called determination.
(A) True (B)
False
Answer : (B)
48. Petition is another term for the complaint.
(A) True
(B) False
Answer : (A)
49. An individual's residence for legal cases is the state to which the individual pays income taxes.
(A) True
(B) False
Answer : (B)
MULTICHOICE
50. 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) an error that is caught before the end of the trial.
Answer : (B)
51. 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.
Answer : (D)
52. 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.
Answer : (B)
53. Dicta is the:
(A) rule of law in a case opinion.
(B) case cite.
(C) discussion of a decision.
(D) precedent in a case.
Answer : (C)
54. Precedent is not followed when:
(A) the facts of a case can be distinguished as being different from the previous case.
(B) a court believes that a change of law is socially or morally mandated.
(C) technology or other significant circumstance has changed.
(D) All of the above
Answer : (D)
55. 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.
Answer : (C)
56. Which of the following names apply to the party who appeals the trial court decision?
(A) Respondent
(B) Appellant
(C) Appellee
(D) Defender
Answer : (B)
57. 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.
Answer : (A)
58. 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) Supreme Court
Answer : (A)
59. 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) Aa case in which the state attorney general is prosecuting a corporation for violation of state
antitrust laws
Answer : (A)
60. 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
Answer : (A)
61. How many U.S. Courts of Appeal are there?

(A) Nine
(B) At least one for every state
(C) Thirteen
(D) One for every electoral district (based on population)
Answer : (C)
62. How many federal district courts are there?
(A) Nine
(B) At least one for every state
(C) Thirteen
(D) One for every electoral district (based on population)
Answer : (B)
63. 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) is a brief explanation of the Supreme Court's decision in a case.
Answer : (C)
64. 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.
Answer : (B)
65. 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.
Answer : (B)
66. 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
Answer : (D)
67. When a jury is deadlocked in a case, the jury is said to be a jury.
(A) grumpy
(B) hung
(C) prima facie
(D) directed
Answer : (B)
68. A juror during voir dire gives responses that makes the plaintiff's attorney believe that the juror
is biased against the plaintiff, but the plaintiff's attorney cannot convince the judge of this bias. The
plaintiff's attorney decides to strike or remove this juror. This is known as a challenge.
(A) cause
(B) peremptory
(C) JNOV
(D) prejudice
Answer : (B)
69. Discovery is:
(A) conducted pre-trial.
(B) conducted post-trial.
(C) required to assure the trial proceeds as an ambush.

(D) is unlimited.
Answer : (A)
70. A writ of certiorari is:
(A) a reversal by an appeals court of a lower court decision.
(B) a refusal to review a lower court decision.
(C) a reduction in damages awarded by the trial court.
(D) an order granting review of a case.
Answer : (D)
71. 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.
Answer : (C)
72. 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.
Answer : (C)
73. Which of these does not happen in discovery?
(A) Requests for production
(B) Appeals
(C) Requests for admissions
(D) Physical examinations and reports from them
Answer : (B)
74. 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.
Answer : (A)
75. 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.
Answer : (B)
76. Which is an advantage of arbitration?
(A) It is always binding
(B) It is slower than litigation
(C) It is less costly than litigation
(D) Its procedures are more complicated than litigation
Answer : (C)
77. Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his parts
from out-of-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.
Answer : (B)
78. 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
Answer : (C)
79. 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.
Answer : (D)
80. 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
Answer : (C)
81. 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.
Answer : (C)
82. Sandra Laughlin is a reporter for the Philadelphia Tribune. In an article in the Tribune about
Justin Bieber, a singer and resident of Canada and Florida, Laughlin wrote an inaccurate statement
about the singer's relationship with singer Miley Cyrus. The Philadelphia Tribune is a Pennsylvania
newspaper owned by a Pennsylvania corporation. If Bieber wishes to file a libel suit (seeking $100
million in damages) against Laughlin and the Tribune, the suit:
(A) could be properly brought in federal district court.
(B) must be brought in Florida.
(C) must be brought in a state court.
Answer : (A)
83. 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
Answer : (B)
84. 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.

Answer : (C)
85. Stare decisis is a Latin term meaning:
(A) "equitable remedy".
(B) "let the decision stand".
(C) "private decision".
(D) "Congressional action".
Answer : (B)
86. 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
Answer : (B)
87. In which system are bankruptcy courts located?
(A) Federal court system
(B) State court system
(C) State lesser court system
(D) Municipal courts
Answer : (A)
88. A witness testifies about something that she does not have first-hand knowledge of in the case.
This is known as:
(A) heresy.
(B) oral evidence.
(C) direct evidence.
(D) hearsay.
Answer : (D)
89. 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
Answer : (C)
90. If a case is reversed and remanded, it:
(A) is dismissed with no further proceedings.
(B) is reversed with no further proceedings.
(C) requires additional hearings or determinations at the trial court level.
(D) means that the lower court acted unconstitutionally.
Answer : (C)
91. The International Court of Justice is said to have jurisdiction.
(A) omni
(B) equitable
(C) contentious
(D) default
Answer : (C)
92. 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
Answer : (D)
93. 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.
Answer : (B)
94. The party who must prove the facts alleged is said to have the:
(A) burden of proof.
(B) burden of cross-examination.
(C) opening statement.
(D) statute of limitations.
Answer : (A)
95. Xcruise.com is an Internet company that sells discount cruises over the Internet to customers
throughout the United States. Xcruise.com has one office with just 10 employees and minimal
equipment, located in Fargo, North Dakota. The rest of Xcruise.com's employees, equipment and
boats are located in either Miami or Libya. The Bottonskis, residents of Virginia, bought two first-
class tickets on Xcruise.com's 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) Alaska 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
Answer : (D)
96. 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.
Answer : (B)
97. The statement can contain both a review of the evidence and an attack of the other side's
case.
(A) closing (B)
opening (C)
redirected
(D) jury instruction
Answer : (A)
98. 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
Answer : (B)
99. 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.
Answer : (D)
100. 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
Answer : (B)
101. 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
Answer : (A)
102. 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
Answer : (C)
103. An appellate brief:
(A) is very short.
(B) contains only the appealing party's arguments.
(C) may contain references to decisions from other cases.
(D) contains only the facts of the trial.
Answer : (C)
104. In a split vote of a panel of appeals court judges:
(A) the case is always remanded.
(B) the panel must call in two more judges and take another vote.
(C) the prior decision must be affirmed.
(D) the minority judge may write a dissenting opinion for the record.
Answer : (D)
105. Early neutral evaluation is an assessment made by:
(A) the defense attorney.
(B) the prosecuting attorney.
(C) a panel of judges.
(D) an attorney not associated with the case at all.
Answer : (D)
106. The concept of using a private court system to solve disputes is known as:
(A) Rent-a-judge.
(B) TV court.
(C) Port-a-court.
(D) Small claims court.
Answer : (A)
107. Which of the following is not a common form of alternative dispute resolution?
(A) Arbitration
(B) Mediation
(C) Adaptation
(D) Summary jury trial
Answer : (C)
ESSAY
108. 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?
Answer :
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).
109. Diagram a typical state court system.
Answer :
State Supreme Court

State Court of Appeals
General Trial Court
Lesser courts
Small claims Justice of City courts Probate
the Peace courts
110. 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?
Answer :
There is diversity and a claim in excess of $75,000, 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.
111. In a case called Smith v. Zeigfield, Zeigfield loses at the trial court level. Give the parties'
names at the trial court level and explain what happens on appeal.
Answer :
At trial, Smith is the plaintiff and Zeigfield is the defendant. Upon appeal, Zeigfield is the petitioner
or appellant and Smith is the respondent or appellee. The case name may change to Zeigfield versus
Smith.
112. Give five reasons why a court may choose not to follow precedent.
Answer :
(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.
Changes in society's needs - e.g., searches at airports needed because of
(5)
increased hijackings.
113. 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?
Answer :
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.
114. 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?
Answer :
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.
115. List three ways your case would properly be within the jurisdiction of the federal district court.
Answer :
United States is a party. There is a federal question.
There is diversity of citizenship and claims of damages in excess of $75,000.
116. Discuss the main differences between arbitration and mediation.
Answer :
Arbitration can be binding or non-binding, has a hearing where evidence is presented, and a
decision is made by the arbitrator or arbitration panel. Mediation is a series of discussions where the
mediator can make recommendations, but no decision is made for the parties.
117. 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.
Answer :
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.
118. When would a business selling merchandise over the Internet be required to defend a lawsuit
in a state in which it had no offices?
Answer :
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.
119. Discuss the major reasons for the discovery phase of a trial.
Answer :
Discovery prevents trial by ambush. It requires disclosure of relevant information by both parties, or
sanctions are given by the judge. The information revealed can help a party escape liability
completely or limit liability for a party, but it can also show the amount of evidence available and can
lead to a settlement. Because of these reasons, and others, the discovery phase can cause a
settlement to end the litigation, or reduce the items to be litigated which can lead to a speedier trial.
120. Discuss the major advantages of alternative dispute resolution over litigation.
Answer :
ADR methods generally reach a conclusion in less time which causes less business disruption and
costs less than litigation. Often, both sides will be more satisfied with the results of ADR because
they will have had more opportunity to give input and more control over whether or not to accept
the results. A compromise is more likely in ADR than in litigation. Some forms of ADR such as
mediation keep the process confidential.
121. How does a "long arm" statute affect the determination of jurisdiction?
Answer :
Long-arm statutes give courts power to extend their reach of jurisdiction into other states that would
not otherwise be possible. This happens when a party does not meet the residential requirements for
jurisdiction (office, employees, property, etc.) but has enough business in the state to warrant
jurisdiction. For example, a business incorporated in Delaware, which sells most of its products to
customers in Maine, may fall under a long-arm statute of Maine.
MULTICHOICE
122. Susan Smith owns a floral shop in Mesa, Arizona. Ms. Smith has designed a special vase that
allows fresh flowers to stay fresh longer. She has a patent pending on the vase. Ms. Smith learns
through a friend that a man who visited her floral shop while on vacation from Minnesota has begun
producing and selling the vase to flower shops around the country. The man has only been in
Arizona once and it was for personal vacation. Ms. Smith has been unable to stop him from the
production of the vases.
If she wishes to bring suit against him, which of the following statements is true?
(A) She will have to bring suit in Minnesota
(B) She will have to bring suit in a Minnesota state court
(C) She will have to bring suit in Arizona because that is her residence
(D) She cannot bring suit in federal district court because the patent is pending
Answer : (A)
123. Susan Smith owns a floral shop in Mesa, Arizona. Ms. Smith has designed a special vase that
allows fresh flowers to stay fresh longer. She has a patent pending on the vase. Ms. Smith learns
through a friend that a man who visited her floral shop while on vacation from Minnesota has begun
producing and selling the vase to flower shops around the country. The man has only been in
Arizona once and it was for personal vacation. Ms. Smith has been unable to stop him from the
production of the vases.
Suppose that Ms. Smith does not want to bring a lawsuit. Which of the following methods of
resolution would be binding on her and the man from Minnesota?
(A) Mock jury trial
(B) Mediation
(C) Arbitration
Answer : (C)
124. John Dawson has been sued by Ralph Kirkwood for breach of contract. John recalls several e-
mail exchanges he had with Ralph about the contract in which Ralph indicated he did not want to
proceed with the contract. Unfortunately, John has deleted the e-mails. Which of the following
statements is true?
(A) John can testify about the e-mails, but he is out of luck in terms of submitting them as evidence.
(B) John can obtain the e-mails from Ralph or Ralph's ISP through discovery.
(C) John cannot obtain the e-mails without Ralph's consent.
(D) E-mails are generally not admissible as evidence.
Answer : (B)
125. How many U.S. Supreme Court justices generally sit and decide a case?
(A) 3
(B) 1
(C) 5
(D) 9
Answer : (D)
TRUEFALSE
126. The principle of stare decisis forbids a court from changing a doctrine already established
judicially.
(A) True (B)
False
Answer : (B)

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Solution Manual for Cengage Advantage Books Foundations of

the Legal Environment of Business 3rd Edition by Jennings ISBN

Chapter 03 The Court System and Dispute Resolution

(A) True (B)

3. A brief is written by the trial judge.

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

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

10. A lawsuit begins with an answer which is closely followed by discovery.

11. There are 13 federal judicial circuits.

12. Subject matter jurisdiction must be established in the complaint.

13. Every trial has a jury to decide it for the parties.

15. Arbitration is merely mediation that is forced upon one party.

(A) True (B)

(A) True (B)

(A) True (B)

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

24. Mediation is normally binding on the parties.

(A) True (B)

(A) True (B)

28. A case that is remanded requires further procedures.

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

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

32. State supreme court decisions cannot be appealed.

33. Oral arguments are not allowed in appellate courts.

34. Depositions are only for pre-trial use.

(A) True (B)

38. Peremptory challenges are typically unlimited.

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

(A) True (B)

(A) True (B)

(A) True (B)

50. 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) an error that is caught before the end of the trial.

51. 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.

52. When a case is remanded:

(B) it is sent back to the trial court.

53. Dicta is the:

(A) rule of law in a case opinion.

(B) case cite.

(C) discussion of a decision.

(D) precedent in a case.

54. Precedent is not followed when:

(B) a court believes that a change of law is socially or morally mandated.

(C) technology or other significant circumstance has changed.

(D) All of the above

(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.

(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.

(A) Federal district court

(B) Court of Claims

(C) U.S. Court