Ch.2 The Resolution Of Private Disputes Verified Test Bank

Business Law, 17e (Langvardt)

Chapter 2 The Resolution of Private Disputes

1) Minor criminal cases and civil disputes are decided in the appellate courts.

2) The plaintiff can sue the defendant in whatever court and  locale that the plaintiff wishes.

3) For a state trial court to have the power to decide a civil case, it must have either in personam jurisdiction or in rem jurisdiction.

4) Due process requirements are satisfied when a state or federal court asserts in personam jurisdiction over a nonresident defendant when he has been shown to have the requisite "minimum contacts" with the forum state or federal district.

5) In rem jurisdiction is based only on the fact that property of the defendant is located within the state.

6) Generally, forum selection clauses in form agreements are unenforceable.

7) In general, a court has venue if it is a territorially fair and convenient forum for both parties to litigate the case in that court.

8) For federal district court diversity jurisdiction to exist the only requirement is that the amount in controversy must be at least $75,000.

9) The doctrine of certiorari jurisdiction makes it mandatory for the U.S. Supreme Court to hear appeals from federal and state courts.

10) 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.

11) The defendant must wait until after the pleadings have been completed before making a motion to dismiss.

12) Interrogatories are a form of discovery requiring a party to file written answers to questions submitted to that party.

13) As in a criminal case, a defendant in a civil case may not be compelled by the plaintiff to testify.

14) Normally, a motion for summary judgment requires that a court decide whether there are genuine questions of material fact and questions of law.

15) The party successful in a civil lawsuit can seek to enforce a judgment by obtaining a writ of execution or by garnishment.

16) The proceedings in courts of limited jurisdiction may be informal, and parties often argue their own cases.

17) The judge, not the jury, always determines the applicable law.

18) A trial court may address venue questions before jurisdiction is established.

19) A defendant who participates in a case with inadequate service of process will be deemed to have waived the objection if it is not made promptly.

20) If the defendant's answer contains a counterclaim, that claim can arise out of any matter between the plaintiff and the defendant.

21) What is a court's power to hear a case and to issue a decision binding on the parties called?

A) Jurisdiction

B) Prerogative

C) Venue

D) Assignment

22) A "long-arm" statute allows:

A) criminal courts jurisdiction over civil cases.

B) state courts more power than federal ones.

C) court's jurisdiction over out-of-state defendants.

D) appellate courts to hear new cases.

23) Calvin, a resident of South Park, Colorado, creates a website called "But Seriously" which acts as an electronic billboard for posting funny stories. Ted, a resident of Northridge, California, posts a story on the website. Stu, another California resident from San Diego, files a lawsuit against Calvin in a federal district court in California, claiming that Calvin had defamed him on his website. Based on these facts, does Calvin have sufficient "minimum contacts" to give the California federal district court in personam jurisdiction over him?

A) No, Ted's posting alone is not enough to create sufficient "minimum contacts."

B) Yes, Ted's posting creates sufficient "minimum contacts."

C) Yes, by creating a website that is accessible in California, Calvin has sufficient "minimum contacts" with that state.

D) Calvin has sufficient "minimum contacts" with California only if Stu's claim is in excess of $75,000.

24) Bubble Wrap Co. (BWC), an Atlanta corporation, has its principal place of business in New York. John, a resident of Florida, asserted on his website that BWC 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 BWC's 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 defendant's motion and dismissed the case because:

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

B) the court did not have subject-matter jurisdiction.

C) the court 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 BWC's business.

25) Jurisdiction based on the presence of property within the state is called ________ jurisdiction.

A) in rem

B) personam

C) sui iuris

D) subject-matter

26) Which of the following is not an example of a court of limited jurisdiction?

A) Traffic court

B) Probate court

C) Trial court

D) Small claims court

27) 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

28) 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

29) 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 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

30) 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.

31) Infobox Online, an Internet access 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.

32) 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.

33) In federal courts, 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 the state where it has been incorporated 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.

34) ________ 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

35) Patent cases being litigated in the federal system are an example of:

A) concurrent jurisdiction.

B) original jurisdiction.

C) exclusive jurisdiction.

D) certiorari jurisdiction.

36) 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 opts for a state court.

D) the defendant belongs to that state.

37) Today, most appealable decisions from the lower courts fall within the Supreme Court's ________ jurisdiction, under which the Court has discretion whether to hear the appeal.

A) appellate

B) certiorari

C) original

D) exclusive

38) 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.

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

A) Summons

B) Motion to Dismiss

C) Deposition

D) Interrogatories

40) The ________ are the documents the parties file with the court when they first state their respective claims and defenses.

A) summons

B) pleadings

C) appeals

D) clauses

41) A(n) ________ must state the remedy requested in the case.

A) summons

B) interrogatory

C) affirmative defense

D) complaint

42) Which of the following may contain an affirmative defense?

A) Summons

B) Interrogatory

C) Complaint

D) Answer

43) 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 plaintiff's claims.

D) is the defendant's attempt to obtain legal relief.

44) Mike sues Randy for "aesthetic pollution." The basis for his suit is Randy's habit of wearing clothes that Mike considers to be ugly. Mike's complaint offers details of Randy's "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, Randy wants to defeat Mike's 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 notwithstanding the verdict.

D) motion for a directed verdict.

45) 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.

46) 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

47) 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 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.

48) 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 or a likely witness by the opposing party's attorney.

D) Written statements made during arbitration.

49) 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.

50) Malcolm has brought a lawsuit against Will. Malcolm feels that there is no genuine issue of material fact in dispute and that he is entitled to win this case as a matter of 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

51) 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

52) 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

53) 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

54) Harvey is planning to file a case against a petrochemical giant that 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

55) 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

56) A party may win a judgment even after the jury has reached a verdict against that party through the procedure of:

A) mens rea.

B) non obstante veredicto.

C) demurrer.

D) habeas corpus.

57) Dillon's, 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 Dillon's.

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

58) A method of alternative dispute resolution in which a neutral third party helps the parties reach a cooperative resolution of their dispute by facilitating communication between them, clarifying their areas of agreement and disagreement, helping see each other's viewpoints, and suggesting settlement options, but who cannot make decisions that bind the parties, is called:

A) conciliation.

B) mediation.

C) minitrial.

D) arbitration.

59) In the form of alternative dispute resolution 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.

60) 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

61) Which of the following statements is false regarding appellate courts?

A) They gather new evidence to reach the correct conclusion.

B) They review the record of the trial court proceedings.

C) They correct legal errors made by the trial judge.

D) They usually accept the trial court's finding of fact.

62) Which of the following is not considered when a court determines if it has in personam jurisdiction over the defendant?

A) Residence

B) Location

C) Property

D) Activities

63) Which of the following circumstances would not give a state court in personam jurisdiction over the defendant?

A) The defendant is a citizen or resident of the state.

B) The defendant previously owned property in the state.

C) The defendant is within the state's borders when process is served on him.

D) The defendant voluntarily appears in court.

64) John lives and works in State A. While driving through State B, he negligently collided his car with another vehicle driven by Barbra, a resident of State B. If Barbra sues John in a State B trial court for injuries she sustained as a result of the accident, how might the court have personal jurisdiction over John?

A) Through the state's long-arm statute because John committed a tort outside of State B that nonetheless produced harm within the state.

B) Through the state's long-arm statute because John committed a tort within the state.

C) In rem jurisdiction

D) State B does not have personal jurisdiction over John.

65) Which of the following situations would not satisfy a state's long-arm statute?

A) The defendant committed a tort while in the state.

B) The defendant wrote a defamatory statement about one of the state's residents on a website.

C) The defendant committed a tort outside of the state that nonetheless caused harm to the state.

D) A business buys and sells good within the state.

66) What was the court's holding in the case in the text Abdouch v. Lopez?

A) The plaintiff's complaint adequately pleaded facts that demonstrated the defendants expressly aimed their tortious conduct at Nebraska.

B) The plaintiff's complaint failed to plead facts to demonstrate defendants knew their conduct would reach Nebraska.

C) The plaintiff's complaint adequately pleaded facts that demonstrated the defendants had sufficient "minimum contacts" with Nebraska to create personal jurisdiction.

D) The plaintiff's complaint failed to plead facts to demonstrate that the defendants had sufficient "minimum contacts" with Nebraska to create personal jurisdiction.

67) In the case in the text Daimler AG v. Bauman, why did the Court conclude the district court did not have jurisdiction over the defendant?

A) The defendant received inadequate service of process under the rules for foreign defendants.

B) The defendant only sold products and services in California but was not incorporated there.

C) The defendant's affiliations with California were not so continuous and systematic as to render it essentially at home.

D) Based on the allegations in the plaintiffs' complaint, the defendant did not harm any citizen in California.

68) The case in the text Hertz Corp. v. Friend, is an example of when a defendant can have a case removed from state court to federal court based on what kind of jurisdiction?

A) Exclusive jurisdiction

B) General jurisdiction

C) Specific jurisdiction

D) Concurrent jurisdiction

69) Where concurrent jurisdiction exists and the plaintiff opts for a state court, the defendant has the option to ________ the case to an appropriate federal district court.

A) redirect

B) remove

C) dismiss

D) dissolve

70) Which of the following is not an example of a specialized federal court?

A) Bankruptcy court

B) District court

C) Court of federal claims

D) Tax court

71) The federal court system consists of ________ circuit courts of appeals.

A) 11

B) 13

C) 9

D) 10

72) When the U.S. Supreme Court has ________ it acts as a trial court.

A) exclusive jurisdiction

B) original jurisdiction

C) limited jurisdiction

D) concurrent jurisdiction

73) Which of the following situations gives the U.S. Supreme court both original and exclusive jurisdiction?

A) A controversy between the United States and a state.

B) A controversy between two or more states.

C) A controversy involving a foreign ambassador.

D) A controversy between a state and a citizen of another state.

74) The set of legal rules establishing how a civil lawsuit proceedings from beginning to end is called ________.

A) discovery

B) jurisdiction

C) civil procedure

D) procedural due process

75) Which of the following is the standard of proof in a civil case?

A) Substantial evidence

B) Clear and convincing

C) Beyond a reasonable doubt

D) Preponderance of the evidence

76) Which of the following does not set standards for the proper service of the summons?

A) Treaties

B) Statutes

C) Court rules

D) Constitutional due process guarantees

77) Why have most courts significantly relaxed their pleading rules?

A) Because they define the issues for trial.

B) Because the purpose of pleading rules is to give the parties general notice of each other's claims and defenses.

C) Because courts are less concerned with procedural rules and more concerned with substantive law.

D) Because courts believe this is within the professional responsibility of the attorneys involved.

78) Which of the following is not a requirement of a complaint?

A) It must be accompanied by an affidavit.

B) It must allege sufficient facts to show that the plaintiff would be entitled to legal relief.

C) It must give the defendant reasonable notice of the nature of the plaintiff's claim.

D) It must state the remedy requested.

79) A(n) ________ is the plaintiff's point-by-point response to the allegations in the answer or counterclaim.

A) affirmative defense

B) interrogatory

C) motion to dismiss

D) reply

80) ________ are one party's written demand that the other party admit or deny, in writing, certain statements of supposed fact or of the application of law to fact.

A) Demurrers

B) Interrogatories

C) Requests for admissions

D) Depositions

81) Which of the following would be subject to e-discovery?

A) Any relevant electronic material even if it is highly burdensome.

B) Electronic business records that are relevant to the litigation and easily accessible.

C) Electronic communication protected by the attorney-client privilege.

D) Electronic business records that are not relevant to the litigation.

82) ________ refers to the pretrial jury screening process when biased potential jurors may be removed for cause.

A) Pretrial conference

B) Minitrial

C) Voir dire

D) Summary judgment

83) A ________ is when the jury makes specific, written findings of fact in response to questions posed by the trial judge.

A) directed verdict

B) general verdict

C) special verdict

D) judgment notwithstanding the verdict

84) What was the Court's holding in the case in the text Tyson Foods, Inc. v. Bouaphakeo?

A) The granting of class certification was improper because the class members waited too long to bring their complaint.

B) The granting of class certification was improper because the class members did not perform similar work and their complaints did not arise out of the same matter.

C) The granting of class certification was proper because the class members worked for the defendant for a similar period of time and all were refused overtime.

D) The granting of class certification was proper because the class members worked in the same facility, did similar work, and were paid under the same policy.

85) In the text case AT&T Mobility LLC v. Concepcion, why did the U.S. Supreme Court majority believe that the case was subject to arbitration?

A) Disputes involving such nominal amounts, such as the $30.22 the plaintiffs claimed, are better suited for arbitration.

B) Contract provisions requiring arbitration of claims on an individual basis are both permissible and enforceable under the Federal Arbitration Act, which takes priority over any conflicting state law.

C) The applicable state law and the Federal Arbitration Act required the plaintiffs arbitrate their claims, despite any provision stated in the contract.

D) The plaintiffs' claim did not meet joinder requirements to join the class action.

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

87) Greg sues Ned in an effort to obtain 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 Greg's 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.

88) Dee sues Gerry for defamation. Dee thinks that the facts clearly are not as stated in Gerry's complaint and that, given Dee's 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?

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

90) Does the Federal Arbitration Act override a state law vesting initial decision-making authority to a court or administrative agency?