Test Bank For Business Law 15th Edition by Jane P. Mallor

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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?

A. Jurisdiction

 

B. Prerogative

 

C. Venue

 

D. Assignment

 

17. A long-arm statute allows:

A. criminal courts jurisdiction over civil cases.

 

B. state courts more power than federal ones.

 

C. courts jurisdiction over out-of-state defendants.

 

D. appellate courts to hear new cases.

 

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?

A. No, Teds posting alone is not enough to create sufficient minimum contacts.

 

B. Yes, Teds posting creates sufficient minimum contacts.

 

C. Yes, by creating a Web site that is accessible in California, Calvin has sufficient minimum contacts with that state.

 

D. Calvin has sufficient minimum contacts with California only if Stus claim is in excess of $75,000.

 

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:

A. BWC could not meet its burden of establishing sufficient minimum contacts.

 

B. BWC did not have subject-matter jurisdiction.

 

C. BWC neither had subject-matter jurisdiction nor in personam jurisdiction.

 

D. publishing of those statements did not amount to defamation and thus no injury was caused to BWCs business.

 

20. Jurisdiction based on the presence of property within the state is called _____ jurisdiction.

A. in rem

 

B. personam

 

C. sui iuris

 

D. subject-matter

 

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:

A. in rem jurisdiction.

 

B. in personam jurisdiction.

 

C. quasi in rem jurisdiction.

 

D. venue.

 

22. In general, a court has _____ if it is a territorially fair and convenient forum in which to hear the case.

A. venue

 

B. original jurisdiction

 

C. limited jurisdiction

 

D. standing

 

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?

A. Choice of law clause

 

B. Forum selection clause

 

C. Substantive clause

 

D. Minimum contacts clause

 

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. Confession of judgment clause

 

B. Forum selection clause

 

C. Choice of law clause

 

D. Substantive clause

 

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:

A. long-arm jurisdiction.

 

B. in personam jurisdiction.

 

C. venue.

 

D. standing.

 

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:

A. unenforceable because it was not the result of bargaining.

 

B. unenforceable against a subscriber in another state.

 

C. enforceable if the subscriber does not file a motion to dismiss.

 

D. enforceable if it is considered reasonable by a court.

 

27. For federal diversity jurisdiction to exist:

A. the case must begin in a federal court of appeals.

 

B. the amount in controversy must exceed $75,000.

 

C. both the plaintiff and the defendant must be citizens of the same state.

 

D. the case must pertain to the Constitution, laws, or treaties of the United States.

 

28. Under the doctrine of federal jurisdiction, a corporation is:

A. a citizen of only the place where is has been incorporated.

 

B. a citizen of only it principal place of business.

 

C. a citizen of both its place of incorporation and the state where it has its principal place of business.

 

D. a citizen of that state which has enacted a long-arm statute and thus has jurisdiction.

 

29. _____ jurisdiction exists when the case arises under the Constitution, laws, or treaties of the United States.

A. Original

 

B. Federal question

 

C. Diversity

 

D. Exclusive

 

30. Patent cases being litigated in the federal system are an example of:

A. concurrent jurisdiction.

 

B. original jurisdiction.

 

C. exclusive jurisdiction.

 

D. certiorari jurisdiction.

 

31. In a case where concurrent jurisdiction exists, a state court may decide a case involving federal questions if:

A. it is a criminal case.

 

B. it is a civil case.

 

C. the plaintiff asserts so.

 

D. the defendant belongs to that state.

 

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.

A. appellate

 

B. certiorari

 

C. original

 

D. exclusive

 

33. In which of the following cases will the U.S. Supreme Court have original, but not exclusive, jurisdiction?

A. When the validity of any treaty has been questioned.

 

B. When the validity of a federal statute has been questioned.

 

C. When there is a controversy between two or more states.

 

D. When a state proceeds against citizens of another state.

 

34. Which of the following notifies the defendant that he, she, or it is being sued?

A. Summons

 

B. Complaints

 

C. Pleadings

 

D. Interrogatories

 

35. The _____ are the documents that the parties file with the court when they first state their respective claims and defenses.

A. summons

 

B. pleadings

 

C. appeals

 

D. clauses

 

36. A(n) _____ must state the remedy requested in the case.

A. summons

 

B. interrogatory

 

C. affirmative defense

 

D. complaint

 

37. Which of the following may contain an affirmative defense?

A. Summons

 

B. Interrogatory

 

C. Complaint

 

D. Answer

 

38. A counterclaim differs from an affirmative defense in that, a counterclaim:

A. is a new claim by the plaintiff.

 

B. does not permit a defendant to claim for damages caused by a fraud.

 

C. is merely an attack on the plaintiffs claims.

 

D. attempts legal relief for the defendant.

 

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:

A. motion to dismiss.

 

B. motion for summary judgment.

 

C. motion for judgment not withstanding the verdict.

 

D. motion for a directed verdict.

 

40. The motion to dismiss for failure to state a claim upon which relief can be granted is sometimes called the:

A. deposition.

 

B. demurrer.

 

C. interrogatory.

 

D. directed verdict.

 

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.

A. demurrer

 

B. counterclaim

 

C. discovery

 

D. affirmative defense

 

42. Which of the following characterizes discovery?

A. It begins before the pleadings are completed.

 

B. Information may be subject to discovery only if it is ultimately be admissible at trial under the legal rules of evidence.

 

C. It is an efficient and time-saving remedy for litigants.

 

D. Interrogatories are a commonly utilized form of discovery.

 

43. What are depositions?

A. Written questions directed to a party, answered in writing, and signed under oath.

 

B. Documentary evidence introduced at a trial.

 

C. Oral examinations of a party by the opposing partys attorney.

 

D. Written statements made during arbitration.

 

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?

A. A request for written questions directed at the opponent.

 

B. Requests for admission directed at the opponent.

 

C. A request for a physical or mental examination of the opponent.

 

D. Requests for the production of documents in civil cases.

 

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?

A. Discovery

 

B. Voir dire

 

C. Jury trial

 

D. Summary judgment

 

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.

A. demurrer

 

B. directed verdict

 

C. pretrial conference

 

D. minitrial

 

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.

A. motion to dismiss

 

B. motion for a new trial

 

C. motion for summary judgment

 

D. motion for a directed verdict

 

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?

A. Mediation

 

B. Long-arm jurisdiction

 

C. Writ of execution

 

D. In rem jurisdiction

 

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?

A. Demurrer

 

B. Class action

 

C. Directed verdict

 

D. Affirmative defense

 

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?

A. Class action

 

B. Garnishment

 

C. Non obstante veredicto

 

D. Settlement

 

51. A party may win a judgment even after the jury has reached a verdict against it through the procedure of:

A. mens rea.

 

B. non obstante veredicto.

 

C. demurrer.

 

D. habeas corpus.

 

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:

A. will be considered valid by federal courts.

 

B. will be considered unenforceable by all courts.

 

C. will result in employees having to mediate their employment-related claims against Dillons.

 

D. will require an employee to mediate employment-related disputes.

 

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:

A. conciliation.

 

B. mediation.

 

C. minitrial.

 

D. arbitration.

 

54. In the form of alternative dispute resolution (ADR) called court-annexed arbitration:

A. a neutral third party is called in to mediate.

 

B. courts decide on certain types of criminal lawsuits.

 

C. the losing party has the right to a regular trial.

 

D. civil lawsuits are sent to the Supreme Court for a hearing.

 

55. Which of the following is an informal alternative method for promoting settlement of disputes from a formal court trial?

A. Minitrial

 

B. Summary judgment

 

C. Directed verdict

 

D. Peremptory challenges

 

 

Essay Questions

56. What two kinds of jurisdiction are necessary for a state court to have jurisdiction over a case? Describe each briefly.

 

 

 

 

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.

 

 

 

 

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?

 

 

 

 

59. What are the consequences of document alteration or destruction that interferes with legitimate discovery requests?

 

 

 

 

60. Does the Federal Arbitration Act (FAA) override a state law vesting initial decision making authority to a court or administrative agency?

 

 

 

 

 

 

 

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?

A. Jurisdiction

 

B. Prerogative

 

C. Venue

 

D. Assignment

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:

A. criminal courts jurisdiction over civil cases.

 

B. state courts more power than federal ones.

 

C. courts jurisdiction over out-of-state defendants.

 

D. appellate courts to hear new cases.

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?

A. No, Teds posting alone is not enough to create sufficient minimum contacts.

 

B. Yes, Teds posting creates sufficient minimum contacts.

 

C. Yes, by creating a Web site that is accessible in California, Calvin has sufficient minimum contacts with that state.

 

D. Calvin has sufficient minimum contacts with California only if Stus claim is in excess of $75,000.

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:

A. BWC could not meet its burden of establishing sufficient minimum contacts.

 

B. BWC did not have subject-matter jurisdiction.

 

C. BWC neither had subject-matter jurisdiction nor in personam jurisdiction.

 

D. publishing of those statements did not amount to defamation and thus no injury was caused to BWCs business.

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.

A. in rem

 

B. personam

 

C. sui iuris

 

D. subject-matter

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:

A. in rem jurisdiction.

 

B. in personam jurisdiction.

 

C. quasi in rem jurisdiction.

 

D. venue.

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. venue

 

B. original jurisdiction

 

C. limited jurisdiction

 

D. standing

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?

A. Choice of law clause

 

B. Forum selection clause

 

C. Substantive clause

 

D. Minimum contacts clause

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. Confession of judgment clause

 

B. Forum selection clause

 

C. Choice of law clause

 

D. Substantive clause

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:

A. long-arm jurisdiction.

 

B. in personam jurisdiction.

 

C. venue.

 

D. standing.

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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