Legal Environments of Business

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Author:
fruitloop42000
ID:
98545
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Legal Environments of Business
Updated:
2011-08-27 21:47:33
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Chapter 2 & 3 Exam
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  1. Federal Judges:
    • - Nominated by President
    • - Confirmed by majority vote
    • - lifetime
    • - Removal only if impeached
    • - Term begins 1st Monday in October
  2. State Judges:
    • - Choosen by a variety of methods
    • - Served fixed terms
    • - Evidence is - elected judges in tort cases grant larger judgments
    • - Immune from suit
  3. Small Claims Court
    - Limited claims of usually $5000 or less, sometimes up to $7500 will be heard
  4. Jurisdiction
    = POWER
  5. Types of Jurisdiction
    • - Subject Matter Jurisdition
    • - In Personam Jurisdiction
    • - Long-Arm Jurisdiction
    • - Territorial Jurisdiction
    • - Quasi In Rem Jurisdiction
    • - In Rem Jurisdiction
    • - Exclusive Juridiction
    • - Concurrent Jurisdiction
  6. Federal Rules of Civil Procedure
    • - Govern procedural aspects of litigation
    • - Pleadings
    • - Discovery
    • - Trial Procedures
    • - Relevant motions
    • - States are free to develop their own
    • - Most adopt the Fed. Rules of Civ. Proc.
  7. Blimka v. My Web Wholesaler, LLC
    • - Held: Affirmed. Idaho court has jurisdiction.
    • - Defendants actions of fraud invoked the use of Idaho's Long-arm statue
    • - Defendants purposeful false misrepresentation directed into Idaho created minium contacts with Idaho that does not offend 14th Amendment
    • - Blimka award attorneys fees and cost
  8. Long Arm Statute
    - A state statute permitting courts to obtain a personal jurisdiction over non-residents as long as the requirements of the statute are met
  9. In Rem Jurisdiction
    • - The dispute between the parties is over property
    • - Where property is located creates jurisdiction
    • - Whether the property owner / defendant is within the jurisdiction does not matter
    • - Tangible property = real estates & personal property
    • - Intangible property = bank accounts & stocks
  10. Quasi In Rep Jurisdiction

    Answer = E
    • - Defendants property is attached to pay for unrelated matter
    • - Ownership of property within the state is basis of jurisdiction
    • - decision in quasi in rem binds the parties themselves
    • - property can be real estate or personal
    • - property can be tangible or intangible
  11. Concurrent Jurisdiction
    • - When plaintiff can bring suit in either federal or state courts
    • - If plaintiff chooses state court, defendant has right to remove to federal court (right of removal in diversity of citizenship)
    • - If plaintiff files suit in defendants home state, defendant cannot move case to federal court
  12. Diversity of Citizenship
    - An action in which the plaintiff and the defendant are citizens of different states
  13. Minimum Contact
    • - Sales office "transacting business" within the state
    • - Landmark case "International Shoe Co. v. Washington (Supeme Court 1945)
    • - Legal contaxt "legal nexus"
    • - Examples of "minimun contact" within a state : (1) Sales Reps. (2) Selling Product. (3) Advertising. (4) Placing products in specific markets

  14. Applying Appropriate Law in Federal Court

    - Issue: When there is Diversity of Citizenship, which substantive law should the federal court apply?
    - Ex.: Smith and Joes have contract dispute; Smith is from Arizona; Jones from California. Which law applies?

    - See Erie v. Tompkins
  15. Erie RR Co. v. Tompkins (1938)
    - Which law applies
    • - Protruding object from train injures Tohmpkins (a PA citizen)
    • - Erie is incorporated in NY
    • - Accidient in PA
    • -If federal common law applies: Erie is liable
    • - If PA common law applies: Tompkins trespassed & Erie is not liable
  16. Erie RR Co. v. Tompkins (1938)

    - Which law applies
    - Held: Concept of federal common law in diversity of citizenship cases is ended. Courts will apply the relevant state's law, not federal common law

    - PA law applies. Tompkins is a tresspasser. Erie is not liable
  17. Applying Appropriate Law in State Court

    - Incidents of the case take place in more than one state
    • - Conflict of Laws or choice of law rules apply
    • -Rules vary according to nature of dispute
    • (1) Contract cases - laws of state in which contract was made will be applied
    • (2) Tort cases - laws of state wehre tort takes place
    • (3) State try to look at interest of the parties, gov't policies
    • (4) General rule - laws apply for state that has the most "significant interest"
    • - See Miller v. Pilgrim's Pride Corporation
  18. Miller v. Pilgrims Pride Corporation
    • - District Court dismissed PP's claim. PP appealed saying Arkansas law, not Texas law, should govern.
    • - Held: Arkansas has not discarded the lex loci delicti (the law of the place of the wrong) rule.
    • - However, must look at the lex loci delicti with the Leflar 5 factors test:
    • (4) Advancement of the forums's governmental interest (This is important to protect a state's interest of its residents)
    • (5) Applicaton of the better rule of law (aimed at avoiding application of unfair or archaic laws; this does not occur if Texas law applies)
  19. Milller v. Pilgrims's Pride Corporation
    - Affirmed. Texas law should govern the case.
  20. Forum non Conveniens
    - A rule that allows a court, in equity, to decline jurisdiction over a case when it believes the matter would be better resolved in another forum. Usually this is invoked when most of the parties and witnesses to a case are in another location, making it more convenient for the trial to be held there, rather than where the case was filed.
  21. 1st Step to Establish Litigation
    - File a complaint
  22. When served with a complaint, defendant needs to respond
    • - Answer
    • - Motion to Dismiss a/k/a Demurrer
    • - Counterclaim
    • - Reply
    • - Affirmative Defenses
  23. Complaint needs to contain the following information
    • - Alleges facts for jurisdiction & remedy/remedies
    • - Request remedy(ies)
    • - Venue
    • - Cause of action
  24. What is it called when a Plaintiff sues a defendant and then the defendant turns around and sues the plaintiff. Defendant now becomes the Plaintiff and Plaintiff now becomes the Defendant
    - Counterclaim
  25. Discovery
    • - Rules of Civil Procedure set guidelines & limits to the process
    • - Purpose to (1) preserve evidence (2) limit element of surprise (3) encourage settlement
    • - Depos
    • - Rogs
    • - Expert Witness
    • - RFA
    • - Orders for production of documents
    • - Physical / mental exams
    • - RFP
  26. Party fails to comply with discovery
    - There is an order to produce discovery
  27. Pre - Trial Conference
    • - Either party may request
    • - Usually attys and judges attend
    • - Simplify issues
    • - Plan course of trial
    • - Judges get parties to drop party of case
    • - Helps focus on key issues
    • - Try to settle
  28. Damages
    • - Monetary Damages
    • - Compensatory Damages
    • - Specific Performance
    • - Equitable remedies
    • - Exemplary Damages
    • - Nominal Damages
    • - Punitive Damages
  29. Res judicata
    - Let justice be done
  30. Arbitration
    • - Most widely recognized form of ADR
    • - Decision is binding and final
    • - No right to go to trial
    • - Closed doors
    • - Less restrictive
    • -
  31. Can arbitrators award punitive damages
    - they have broad powers to decide remedies
  32. Do judges have the authority to rule in a case where parties refuse to settle
    - False
  33. What 3 things need to be in your answer to a complaint
    • - Admit, Deny or say that it does not know the truth
    • - Affirmative Defenses
    • - Burden of proof

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