Business Law Today – 10th Edition – Chapter 3

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Judicial Review
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The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch. Judicial branch’s checks and balances.
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Jurisdiction
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The authority of court to hear and decide a specific case. Depends on the person, company, or the property involved
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In personam jurisdiction
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Personal jurisdiction
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In rem jurisdiction
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Jurisdiction over a thing
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Long Arm Staute
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A state statute that permits a state to exercise jurisdiction over nonresident defendants. For this to happen the defendant must have minimum contact with the state to justify jurisdiction
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Marbury v Madison
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(1803) Marbury was a midnight appointee of the Adams administration and sued Madison for commission. Chief Justice Marshall said the law that gave the courts the power to rule over this issue was unconstitutional. established judicial review
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Probate courts
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A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person’s estate
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Bankruptcy Courts
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A federal court of limited jurisdiction that handles only bankruptcy proceedings, which are governed by federal bankruptcy law.
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Original Jurisdiction
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Courts in which lawsuits begin, trials take place, and evidence is presented. Also, known as trial courts
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Appellate Jurisdiction
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Cases can be brought before these courts only on appeal from an order or a judgment of a trial court or other lower court.
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Federal Question
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A question that pertains to the U.S. Constitution, an act of Congress, or a treaty and provides a basis for federal jurisdiction in a case.
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Diversity of Citizenship
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A basis for federal court jurisdiction over a lawsuit between citizens of different states and countries.
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Diversity Jurisdiction
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This jurisdiction also exists in cases between (1) a foreign country and citizens of a state or of different states and (2) citizens of a state and citizens or subjects of a foreign country. These bases for diversity jurisdiction are less commonly used.
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Concurrent Jurisdiction
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Jurisdiction that exists when two different courts have the power to hear a case.
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Exclusive Jurisdiction
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Jurisdiction that exists when a case can be heard only in a particular court or type of court.
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Crummey v Morgan
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But note that a single sale on eBay does not necessarily confer jurisdiction. Jurisdiction depends on whether the seller regularly uses eBay as a means for doing business with remote buyers. See Boschetto v. Hansing, 539 F.3d 1011 (9th Cir. 2008).
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Venue
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The geographic district in which a legal action is tried and from which the jury is selected.
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Standing to Sue
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The legal requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The party bringing the lawsuit must have suffered a harm, or have been threatened by a harm, as a result of the action about which she or he has complained.
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Justiciable Controversy
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A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.
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Small Claim Courts
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A special court in which parties can litigate small claims without an attorney.
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Question of Fact
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In a lawsuit, an issue that involves only disputed facts, and not what the law is on a given point.
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Question of Law
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In a lawsuit, an issue involving the application or interpretation of a law.
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Highest State Courts
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The decisions of this state court are final on questions of state law
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Writ of Certiorari
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A writ from a higher court asking a lower court for the record of a case.
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Rule of Four
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A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.
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Litigation
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The process of resolving a dispute through the court system.
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Pleadings
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Statements by the plaintiff and the defendant that detail the facts, charges, and defenses of a case.
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Complaint
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The pleading made by a plaintiff alleging wrongdoing on the part of the defendant. When filed with a court, the complaint initiates a lawsuit. Accompanied by (1) the facts necessary for the court to take jurisdiction, (2) a brief summary of the facts necessary to show that the plaintiff is entitled to relief (a remedy),Footnote and (3) a statement of the remedy the plaintiff is seeking.
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Summons
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A document informing a defendant that a legal action has been commenced against her or him and that the defendant must appear in court on a certain date to answer the plaintiff’s complaint.
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Default Judgment
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A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff’s claim.
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Answer
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Procedurally, a defendant’s response to the plaintiff’s complaint.
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Counterclaim
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A claim made by a defendant in a civil lawsuit against the plaintiff. In effect, the defendant is suing the plaintiff.
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Reply
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Procedurally, a plaintiff’s response to a defendant’s answer.
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Statute of limitations
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A state or federal statute that sets the maximum time period during which a certain action can be brought or rights enforced
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Affirmative Defense
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Agreeing with the claim, but raising new facts that could have the case thrown out.
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Motion to Dismiss
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A pleading in which a defendant admits the facts as alleged by the plaintiff but asserts that the plaintiff’s claim to state a cause of action has no basis in law.
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Motion for Judgment on the Pleadings
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A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.
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Motion for Summary Judgement
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A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.
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Discovery
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A method by which the opposing parties obtain information from each other to prepare for trial.
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Depositions
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The testimony of a party to a lawsuit or a witness taken under oath before a trial.
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Interrogations
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A series of written questions for which written answers are prepared by a party to a lawsuit, usually with the assistance of the party’s attorney, and then signed under oath.
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e-evidence
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A type of evidence that consists of all computer-generated or electronically recorded information.
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Pretrial Conference
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The hearing consists of an informal discussion between the judge and the opposing attorneys after discovery has taken place. The purpose of the hearing is to explore the possibility of a settlement without trial and, if this is not possible, to identify the matters that are in dispute and to plan the course of the trial.
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Voir Dire
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An important part of the jury selection process in which the attorneys question prospective jurors about their backgrounds, attitudes, and biases to ascertain whether they can be impartial jurors.
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Peremptorily
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Ask that an individual not be sworn in as a juror without providing any reason.
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For Cause
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Provide a reason why an individual should not be sworn in as a juror.
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Motion for Directed Verdict
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A motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party making the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
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Award
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The monetary compensation given to a party at the end of a trial or other proceeding.
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Motion for Judgement n.o.v
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A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury’s verdict against him or her was unreasonable and erroneous.
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Motion for New Trial
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A motion asserting that the trial was so fundamentally flawed (because of error, newly discovered evidence, prejudice, or another reason) that a new trial is necessary to prevent a miscarriage of justice.
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Brief
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A written summary or statement prepared by one side in a lawsuit to explain its case to the judge.
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Docket
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The list of cases entered on a court’s calendar and thus scheduled to be heard by the court.
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Alternative Dispute Resolution (ADR)
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The resolution of disputes in ways other than those involved in the traditional judicial process, such as negotiation, mediation, and arbitration.
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Negotiation
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A process in which parties attempt to settle their dispute informally, with or without attorneys to represent them.
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Mediation
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A method of settling disputes outside the courts by using the services of a neutral third party, who acts as a communicating agent between the parties and assists them in negotiating a settlement.
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Arbitration
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The settling of a dispute by submitting it to a disinterested third party (other than a court), who renders a decision.
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Arbitration Clause
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A clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court.
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Summary Jury Trials (SJT)
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A method of settling disputes by holding a trial in which the jury’s verdict is not binding but instead guides the parties toward reaching an agreement during the mandatory negotiations that immediately follow.
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Online Dispute Resolution (ODR)
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The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.

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