Business Law

Chapter 3
The Role of Courts in Our
Legal System
 Objectives
List the basic parts of a state court
system
Identify when a lawsuit can be filed in
a federal court
Discuss the procedure of a trial
Summarize the steps in a typical
lawsuit*
 Jurisdiction
The authority of a court to hear and
decide a specific action.
Geographical area, or
Right and power of a court to adjudicate
(determine) matters concerning persons,
property, or subject matter.
 Jurisdiction in Cyberspace
“Sliding-scale” standard
Substantial (contracts, sales, etc.)
Jurisdiction is proper
Some interactivity
May have jurisdiction
Passive advertising
No jurisdiction
 Court Systems
U. S. Courts of Highest State Courts
Appeals State Courts of
Federal Administrative Appeals
Agencies State Trial Courts of
U. S. District Courts General Jurisdiction
Specialized U. S. State Administrative
Courts Agencies
Local Trial Courts of
Limited Jurisdiction
 State Court System
Trial Courts
Trials are held and testimony given
Appellate Courts
Trials are reviewed and appeals
heard
 State Trial Courts
General Jurisdiction
County, district, superior, or circuit
Limited Jurisdiction
Special inferior trial courts or minor
judiciary courts
Small Claims Court, municipal
court, probate court
 Courts of Appeals
Examine the record of a case on
appeal and determine whether the
trial court committed an error
Questions of law and procedure,
but usually not questions of fact
 Federal Court System
U. S. District Courts
Original jurisdiction in federal
matters
U. S. Courts of Appeals
U. S. Supreme Court
 U. S. District Courts
Thirteen federal judicial “circuits”
Each circuit subdivided into districts
(currently 96, at least one in every
state)
Specialized U. S. Courts: Tax Court,
Bankruptcy Court, Federal Claims
U. S. Courts of Appeals
Thirteen U. S. Courts of Appeals
Twelve hear cases in their
respective circuits
One is the federal circuit and has
national jurisdiction
 U. S. Supreme Court
Only one national Supreme Court
Nine justices, lifetime
appointments
Has original jurisdiction in rare
instances, mostly is an appeals
court
 Federal Jurisdiction
Federal question – issue of law based on the
Constitution, treaty, or federal law
(>$75,000)
Diversity of citizenship
Citizens of different states
Foreign country and citizens of a state
Citizens of a state and citizens or subjects of a
foreign country
 Supreme Court Cases
No absolute right of appeal
Thousands of cases, hears about a 100 a
year
Writ of certiorari – order issued by the
Supreme Court to a lower court to send
the record of a case for review
“rule of four” – four justices agree to issue
the writ
 Adversary System of
Justice
Lawyer functions as the client’s
advocate
Presents the client’s version of the
facts to convince the jury or judge
Judge responsible for appropriate
application of the law
 Court Procedure
Procedural law – rules and
standards for determining disputes
in courts
Complex, vary from court to court
Federal and state rules
 Pleadings
Inform each party of the claims
of the other and specify the
issues
Complaint and answer
Counterclaim and reply
 Complaint
Petition or declaration
Filed by plaintiff against a defendant
Contains:
Statement of jurisdiction
Statement of entitlement to remedy
Statement of remedy sought*
 Procedure
Summons – notifies the defendant
that he or she is required to prepare
an answer to the complaint
Default judgment – failure to
answer or defend against a claim,
plaintiff is awarded remedy sought
 Procedure
Motion to dismiss (demurrer) –
pleading in which the defendant
admits the facts as alleged by the
plaintiff, but asserts that plaintiff’s
claim fails to state a cause of action
Deny or grant
 Answer
Either admits the allegations in the
complaint or denies them and outlines
any defenses that the defendant may
have
Raise a counterclaim (may be lost if
not brought up)
Plaintiff must reply
 Pretrial Motions
Motion for Judgment on the
Pleadings (no disputed facts, no
outside evidence)
Motion for Summary Judgment
(outside evidence allowed, such as
affidavits or documents)*
 Discovery
Obtaining information from the
opposing party or from other
witnesses before trial
Prevents surprises
Narrows the issues so trial is more
efficient
 Discovery
Depositions – sworn testimony by the
opposing party or any witness,
recorded by a court official
Interrogatories – series of written
questions for which written answers
are prepared and signed under oath
(directed to a party to the lawsuit)
 Discovery
Other information
Admission of truth
Inspect and examine documents or
premises
Physical or mental examinations
Noncompliance may result in contempt
of court, or even a default judgment
 At the Trial
Opening statements
Plaintiff’s attorney goes first
Direct examination
Cross-examination
Redirect examination
Recross-examination
 At the Trial
Rebuttal – evidence and testimony
refuting the defendant’s case
Rejoinder – evidence and
testimony refuting the rebuttal
Closing arguments – summary
statement of their version
 At the Trial
Motions to dismiss the case, for
summary judgment, and for a
directed verdict can be filed during
the case
Motion for Directed Verdict – not
sufficient evidence to support the
claim
 Posttrial Motions
Motion to set aside verdict and to
hold a new trial
Judge may grant a new trial if
convinced that the jury was in error
but does not feel it appropriate to
grant a judgment for the other side
 The Appeal
Appellant – party who appeals
(petitioner)
Appellee – party in opposition
(respondent)
Briefs – filed with reviewing court,
contain arguments
 The Appeal
No evidence
Reversed – error committed
Remanded – sent back for new trial
Affirmed – enforcement of court’s
judgment