Chapter Two

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The Ohio state legislature passes a law to regulate local delivery services. The final authority regarding the constitutionality of this law is

the judicial system

Harry, a resident of Indiana, has an accident with Jane, a resident of Kentucky, while driving through the state. Jane files a suit against Harry in Kentucky. Regarding Harry, Kentucky has

in personam jurisdiction

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

in rem jurisdiction.

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

in rem jursidiction

Alpha Company files a suit against Beta, Inc. in a Colorado court with general jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The difference between general and limited jurisdiction is

the subject matter of the cases that the courts can decide

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

the case is being heard for the first time

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

a federal district court to exercise original jurisdiction

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

conducted substantial business with Missouri residents

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

conducted substantial business with North Dakota residents through its Web Site

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

is a more convenient location to hold the trial

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

Nik's web site activities

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

standing to sue

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 "substantial enough" connection with the state

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

the Minnesota Supreme Court

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 dismissal of the suit is that Jock does not have

standing

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

means that the Idaho court's decision is the law in Idaho

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

the law that applied to the issues in the case

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

litigation

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

not required to hear the case

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 mediation

mediation

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

certiorari

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

dismissed or settled before a trial

Jen files a suit against Kyle. Before going to trial, the parties meet, with their attorneys to represent them, to precent their dispute to a third party who is not a judge but who renders a legally binding decision. This is

arbitration

Sally and Tom disagree over the amount of money due under their contract. 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

negotiation

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

do nothing

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. The least expensive method to resolve the dispute between Java and Kaffe may be

negotiation because no third parties are needed

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.

If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of settling their dispute may be mediation because

the process is not adversarial

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.

Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of

arbitration

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

do nothing

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

order the parties to arbitrate

Fair trade Company and Good Shipping. Inc., have their dispute resolved 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

do nothing

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

an award

Molly files a suit against Nick. They meet, and each party's attorney 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 encourage them to settle their dispute. This is

a summary jury trial

Transnational Corporation and UniShip, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

order a party to submit to arbitration

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

Australia, the United States, or both

Vince files a suit against Will. Vince and Will meet, and each party's attorney 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 encourage them to settle their dispute. This is

a summary jury trial

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

not at all

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

Dick or EZ

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

a forum-selection clause

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