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Test Bank For Business Law 15th Edition by Jane P. Mallor
Test Bank For Business Law 15th Edition by Jane P. Mallor
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WITH ANSWERS
Business Law 15th Edition by Jane P. Mallor Test Bank
Chapter 02
The Resolution of Private Disputes
True / False Questions
| 1. | Minor criminal cases and civil disputes are decided in the appellate courts.
True False |
| 2. | For a state trial court to have the power to decide a civil case, it must have both in personam jurisdiction and in rem jurisdiction.
True False |
| 3. | The assertion of specific in personam jurisdiction satisfies federal due process guarantees so long as the defendant has sufficient minimum contacts with the forum state.
True False |
| 4. | In rem jurisdiction is based only on the fact that property of the defendant is located within the state.
True False |
| 5. | Generally, forum selection clauses in form agreements are unenforceable.
True False |
| 6. | For federal district court diversity jurisdiction to exist, the amount in controversy must exceed $500,000.
True False |
| 7. | Often, federal district courts have concurrent jurisdiction with state courts.
True False |
| 8. | The doctrine of certiorari jurisdiction makes it mandatory for the U.S. Supreme Court to hear appeals from federal and state courts.
True False |
| 9. | Brennan sues Melissa for breach of contract. In her reply, Melissa claims, among other things, that she should not be liable as she only entered the contract because Brennan defrauded her. This assertion is called an affirmative defense.
True False |
| 10. | The defendant must wait until after the pleadings have been completed before making a motion to dismiss.
True False |
| 11. | Interrogatories are a form of discovery requiring a party to file written answers to questions submitted to that party.
True False |
| 12. | As in a criminal case, a defendant in a civil case may not be compelled by the plaintiff to testify.
True False |
| 13. | Normally, a motion for summary judgment requires that a court decide both questions of fact and questions of law.
True False |
| 14. | The losing party usually can appeal a trial courts decision to grant a motion for a directed verdict against that party.
True False |
| 15. | The judgment winner can seek to enforce the judgment by obtaining a writ of execution or by garnishment.
True False |
Multiple Choice Questions
| 16. | What is a courts power to hear a case and to issue a decision binding on the parties called?
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| 17. | A long-arm statute allows:
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| 18. | Calvin, a resident of South Park, Colorado, creates a Web site called But Seriously which acts as an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts a story on the Web site. Stu, a San Diego, California resident, files a lawsuit against Calvin in a federal district court in California, claiming that Calvin had defamed him on his Web site. Based on these facts, does Calvin have sufficient minimum contacts to give the California federal district court in personam jurisdiction over him?
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| 19. | Bubble Wrap Co. (BWC), an Atlanta corporation, has its principal place of business in New York. John, a resident of Florida, asserted on his Web site that BWC is engaged in ongoing criminal activity, scams, and phishing. BWC sued John in the U.S. District Court for the District of New York, alleging defamation and injury to BWCs business in New York. John filed a motion to dismiss the case alleging that neither subject-matter nor in personam jurisdiction existed. The court granted the defendants motion and dismissed the case because:
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| 20. | Jurisdiction based on the presence of property within the state is called _____ jurisdiction.
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| 21. | Jack, a resident of Texas, sued Jill, a resident of Kentucky, alleging breach of contract. Jack may attach Jills bank account in Kentucky to recover the amount of the judgment from the account, if his suit is successful. This is an example of:
|
| 22. | In general, a court has _____ if it is a territorially fair and convenient forum in which to hear the case.
|
| 23. | Contracts sometimes contain a provision reciting that disputes between the parties regarding matters connected with the contract must be litigated in the courts of a particular state. What is such a provision called?
|
| 24. | Bob is a merchant in New York and Betty is a merchant in California. Bob wants to do business with Betty but he is concerned that if a lawsuit should result from their transaction, he might have to travel to California and hire a California litigation lawyer to litigate the dispute. What type of clause should Bob try to include in his contract with Betty that will probably assure him that if litigation ensues, it will take place in New York?
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| 25. | Defending against a federal district court suit by Paul, Dan claims that Paul has sued him in the wrong federal district court. Dan has raised a question of:
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| 26. | Infobox Online, an Internet services provider, includes in its clickwrap contract a clause stating that California courts have exclusive jurisdiction over subscribers disputes with Infobox Online. This clause will most likely be:
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| 27. | For federal diversity jurisdiction to exist:
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| 28. | Under the doctrine of federal jurisdiction, a corporation is:
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| 29. | _____ jurisdiction exists when the case arises under the Constitution, laws, or treaties of the United States.
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| 30. | Patent cases being litigated in the federal system are an example of:
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| 31. | In a case where concurrent jurisdiction exists, a state court may decide a case involving federal questions if:
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| 32. | Today, most appealable decisions from the lower courts fall within the Supreme Courts _____ jurisdiction, under which the Court has discretion whether to hear the appeal.
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| 33. | In which of the following cases will the U.S. Supreme Court have original, but not exclusive, jurisdiction?
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| 34. | Which of the following notifies the defendant that he, she, or it is being sued?
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| 35. | The _____ are the documents that the parties file with the court when they first state their respective claims and defenses.
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| 36. | A(n) _____ must state the remedy requested in the case.
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| 37. | Which of the following may contain an affirmative defense?
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| 38. | A counterclaim differs from an affirmative defense in that, a counterclaim:
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| 39. | Paul sues Dan for aesthetic pollution. The basis for his suit is Dans habit of wearing clothes Paul considers ugly. Pauls complaint offers details of Dans ugly clothing in many separate, numbered paragraphs. However, no law requires one to pay damages for wearing clothes that another considers ugly and for causing aesthetic dissatisfaction to some other party. Thus, Dan wants to defeat Pauls claim as fast as possible. The best procedural device for doing so is the:
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| 40. | The motion to dismiss for failure to state a claim upon which relief can be granted is sometimes called the:
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| 41. | The right of _____ is available for information that is not subject to a recognized legal privilege and is relevant to the case or likely to lead to other information that may be relevant.
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| 42. | Which of the following characterizes discovery?
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| 43. | What are depositions?
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| 44. | Discovery generally takes place without a need for court orders or other judicial supervision. Which of the following is an EXCEPTION to this rule?
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| 45. | Malcolm has brought a lawsuit against Will. Malcolm feels that there is no genuine issue of material fact in dispute, and also that he is entitled to win this case as a matter or law. What legal procedure would allow Malcolm to win this case as quickly as possible?
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| 46. | At a _____, the judge meets informally with the attorneys for both litigants in an attempt to get the attorneys to stipulate, or agree to, a resolution of certain issues in order to simplify the trial.
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| 47. | The American legal system gives considerable power to the jury; however, it also has devices for limiting that power. The _____ provides a judgment to one party before the jury gets a chance to decide the case.
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| 48. | Abby gets a state court civil judgment against Casey, but Casey does not pay. Which of the following is one of the tools available to Abby to enforce the judgment against Casey?
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| 49. | Harvey is planning to file a case against a petrochemical giant which has a plant in his town. The petrochemical plant is dumping toxic wastes into its surrounding areas. Harvey is mobilizing the residents of the town, all of whom have suffered from various health problems due to the activities of the plant. Which of the following would be of most help to Harvey and the other residents?
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| 50. | Which of the following helps a plaintiff to seize the property that belongs to the defendant but is in the hands of a third party?
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| 51. | A party may win a judgment even after the jury has reached a verdict against it through the procedure of:
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| 52. | Dillons, a discount retailer with over 500 employees, includes a clause in its employment application stating that all future employment disputes will be resolved through binding arbitration. This clause most likely:
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| 53. | A method of alternative dispute resolution in which a neutral third party helps the parties reach a resolution of the dispute by facilitating communication, clarifying areas of agreement, helping see each others viewpoints, suggesting settlement options, but who cannot make decisions that bind the parties, is called:
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| 54. | In the form of alternative dispute resolution (ADR) called court-annexed arbitration:
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| 55. | Which of the following is an informal alternative method for promoting settlement of disputes from a formal court trial?
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Essay Questions
| 56. | What two kinds of jurisdiction are necessary for a state court to have jurisdiction over a case? Describe each briefly.
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| 57. | Greg sues Ned in an effort to get title to some land claimed by Ned and located inside the state of Texas. Ned has never been to Texas in his life, has never had any contacts of any kind with the state, and refuses to appear in Texas to defend against Gregs suit. Later, after Greg wins a default judgment against Ned, Ned shows up in Texas to claim that the judgment was invalid because he was totally outside Texas, hence Texas courts had no jurisdiction over him, and for this reason they could not affect his rights to the land. Is Ned right? Why or why not? Assume that subject-matter jurisdiction exists.
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| 58. | Dee sues Gerry for defamation. Dee thinks that the facts clearly are not as stated in Gerrys complaint and that, given Dees version of the facts, Gerry cannot recover for defamation. What motion gives Gerry the best chance of winning the case early? What does it involve?
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| 59. | What are the consequences of document alteration or destruction that interferes with legitimate discovery requests?
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| 60. | Does the Federal Arbitration Act (FAA) override a state law vesting initial decision making authority to a court or administrative agency?
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Chapter 02 The Resolution of Private Disputes Answer Key
True / False Questions
| 1. | Minor criminal cases and civil disputes are decided in the appellate courts.
FALSE Minor criminal cases and civil disputes involving small amounts of money or specialized matters frequently are decided in courts of limited jurisdiction. Appellate courts correct legal errors made by trial judges. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Describe the basic structures of state court systems and the federal court system. Topic: State Courts and Their Jurisdiction |
| 2. | For a state trial court to have the power to decide a civil case, it must have both in personam jurisdiction and in rem jurisdiction.
FALSE In order to decide a civil case, a state trial needs to have either in personam or in rem jurisdiction. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 3. | The assertion of specific in personam jurisdiction satisfies federal due process guarantees so long as the defendant has sufficient minimum contacts with the forum state.
TRUE The assertion of specific in personam jurisdiction satisfies federal due process guarantees so long as the defendant has sufficient minimum contacts with the forum state, such that maintaining an action there comports with traditional notions of fair play and substantial justice. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 4. | In rem jurisdiction is based only on the fact that property of the defendant is located within the state.
TRUE In rem jurisdiction is based on the presence of property within the state and it empowers state courts to determine rights in that property even if the persons whose rights are affected are outside the states in personam jurisdiction. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 5. | Generally, forum selection clauses in form agreements are unenforceable.
FALSE Forum selection clauses are generally enforced by courts unless they are shown to be unreasonable in a given set of circumstances. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 6. | For federal district court diversity jurisdiction to exist, the amount in controversy must exceed $500,000.
FALSE Diversity jurisdiction exists when (1) the case is between citizens of different states (2) the amount in controversy exceeds $75,000. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-04 Explain what is necessary in order for a federal court to have subject matter jurisdiction over a civil case. Topic: Federal Courts and Their Jurisdiction |
| 7. | Often, federal district courts have concurrent jurisdiction with state courts.
TRUE Often, federal district courts have concurrent jurisdiction with state courtsmeaning that both state and federal courts have jurisdiction over the case. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-04 Explain what is necessary in order for a federal court to have subject matter jurisdiction over a civil case. Topic: Federal Courts and Their Jurisdiction |
| 8. | The doctrine of certiorari jurisdiction makes it mandatory for the U.S. Supreme Court to hear appeals from federal and state courts.
FALSE The doctrine of certiorari jurisdiction grants the U.S. Supreme Court the discretion to decide whether it wants to hear a case or not. The court hears only a small percentage of the many appeals that come to it. |
| AACSB: Ethics Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Explain what is necessary in order for a federal court to have subject matter jurisdiction over a civil case. Topic: Federal Courts and Their Jurisdiction |
| 9. | Brennan sues Melissa for breach of contract. In her reply, Melissa claims, among other things, that she should not be liable as she only entered the contract because Brennan defrauded her. This assertion is called an affirmative defense.
TRUE A successful affirmative defense enables the defendant to win the case even if all the allegations in the complaint are true and, by themselves, would have entitled the plaintiff to recover. |
| AACSB: Analytic AACSB: Ethics Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Identify the major steps in a civil lawsuits progression from beginning to end. Topic: Civil Procedure |
| 10. | The defendant must wait until after the pleadings have been completed before making a motion to dismiss.
FALSE The motion to dismiss is often made after the filing of a complaint. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-05 Identify the major steps in a civil lawsuits progression from beginning to end. Topic: Civil Procedure |
| 11. | Interrogatories are a form of discovery requiring a party to file written answers to questions submitted to that party.
TRUE Interrogatories are written questions directed by the plaintiff to the defendant, or vice versa. The litigant on whom interrogatories are served must provide written answers, under oath, within a time period prescribed by applicable law. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Describe the different forms of discovery available to parties in civil cases. Topic: Civil Procedure |
| 12. | As in a criminal case, a defendant in a civil case may not be compelled by the plaintiff to testify.
FALSE In a criminal case, a defendant may be compelled by the plaintiff to testify; but in a civil case, it is not so. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 Describe the different forms of discovery available to parties in civil cases. Topic: Civil Procedure |
| 13. | Normally, a motion for summary judgment requires that a court decide both questions of fact and questions of law.
TRUE A summary judgment involves factual determinations. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Describe the different forms of discovery available to parties in civil cases. Topic: Civil Procedure |
| 14. | The losing party usually can appeal a trial courts decision to grant a motion for a directed verdict against that party.
TRUE The motion for a directed verdict may be made by either party; it usually occurs after the other (nonmoving) party has presented his/her evidence. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-06 Describe the different forms of discovery available to parties in civil cases. Topic: Civil Procedure |
| 15. | The judgment winner can seek to enforce the judgment by obtaining a writ of execution or by garnishment.
TRUE The motion for a directed verdict may be made by either party; it usually occurs after the other party has presented her evidence. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Describe the different forms of discovery available to parties in civil cases. Topic: Civil Procedure |
Multiple Choice Questions
| 16. | What is a courts power to hear a case and to issue a decision binding on the parties called?
Jurisdiction is a courts power to hear a case and to issue a decision binding on the parties. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-02 Explain the difference between subject matter jurisdiction and in personam jurisdiction. Topic: State Courts and Their Jurisdiction |
| 17. | A long-arm statute allows:
Most states have enacted long-arm statutes that give their courts in personam jurisdiction over certain out-of-state defendants. Under these statutes, nonresident individuals and businesses become subject to the jurisdiction of the states courts by doing business within the state, contracting to supply goods or services within the state, or committing a tort within the state. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 Describe the basic structures of state court systems and the federal court system. Topic: State Courts and Their Jurisdiction |
| 18. | Calvin, a resident of South Park, Colorado, creates a Web site called But Seriously which acts as an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts a story on the Web site. Stu, a San Diego, California resident, files a lawsuit against Calvin in a federal district court in California, claiming that Calvin had defamed him on his Web site. Based on these facts, does Calvin have sufficient minimum contacts to give the California federal district court in personam jurisdiction over him?
When the parties have a contractual relationship, minimum contacts may be shown by the parties negotiations preceding their agreement, the course of dealing between the parties, the terms of the agreement, and foreseeable future consequences arising out of the agreement. In this case, there is no such agreement and hence, it does not apply. |
| AACSB: Ethics AACSB: Reflective Thinking Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 19. | Bubble Wrap Co. (BWC), an Atlanta corporation, has its principal place of business in New York. John, a resident of Florida, asserted on his Web site that BWC is engaged in ongoing criminal activity, scams, and phishing. BWC sued John in the U.S. District Court for the District of New York, alleging defamation and injury to BWCs business in New York. John filed a motion to dismiss the case alleging that neither subject-matter nor in personam jurisdiction existed. The court granted the defendants motion and dismissed the case because:
When the parties have a contractual relationship, minimum contacts may be shown by the parties negotiations preceding their agreement, the course of dealing between the parties, the terms of the agreement, and foreseeable future consequences arising out of the agreement. In this case, there is no such agreement and hence, it does not apply. |
| AACSB: Ethics AACSB: Reflective Thinking Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 20. | Jurisdiction based on the presence of property within the state is called _____ jurisdiction.
In rem jurisdiction is based on the presence of property within the state. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 21. | Jack, a resident of Texas, sued Jill, a resident of Kentucky, alleging breach of contract. Jack may attach Jills bank account in Kentucky to recover the amount of the judgment from the account, if his suit is successful. This is an example of:
Quasi in rem jurisdiction is also based on the presence of property within the state. Cases based on quasi in rem jurisdiction do not necessarily determine rights in the property itself. Instead, the property is regarded as an extension of the out-of-state defendantan extension that sometimes enables the court to decide claims unrelated to the property. |
| AACSB: Ethics AACSB: Reflective Thinking Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 22. | In general, a court has _____ if it is a territorially fair and convenient forum in which to hear the case.
A court has venue if it is a territorially fair and convenient forum in which to hear the case. Even if a court has jurisdiction, it may be unable to decide the case because venue requirements have not been met. |
| AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 23. | Contracts sometimes contain a provision reciting that disputes between the parties regarding matters connected with the contract must be litigated in the courts of a particular state. What is such a provision called?
Contracts sometimes contain a forum selection clause reciting that disputes between the parties regarding matters connected with the contract must be litigated in the courts of a particular state. Depending on its wording, a forum selection clause may have the effect of addressing both jurisdiction and venue issues. |
| AACSB: Ethics Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 24. | Bob is a merchant in New York and Betty is a merchant in California. Bob wants to do business with Betty but he is concerned that if a lawsuit should result from their transaction, he might have to travel to California and hire a California litigation lawyer to litigate the dispute. What type of clause should Bob try to include in his contract with Betty that will probably assure him that if litigation ensues, it will take place in New York?
A forum selection clause may address both jurisdiction and venue issues. Hence, it would be a useful tool for Bob in case any type of litigation takes place in the future. |
| AACSB: Analytic AACSB: Ethics Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 25. | Defending against a federal district court suit by Paul, Dan claims that Paul has sued him in the wrong federal district court. Dan has raised a question of:
Even if a court has jurisdiction, it may not be able to decide a case because of venue requirements. A court has venue if it is a territorially fair and convenient forum in which to hear the case. |
| AACSB: Analytic AACSB: Ethics Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-03 Identify the major legal issues courts must resolve when deciding whether in personam jurisdiction exists with regard to a defendant in a civil case. Topic: State Courts and Their Jurisdiction |
| 26. | Infobox Online, an Internet services p
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