Copyright © 2011 by Jeffrey Pittman

 Note the difference between federal and state court systems in the U.S., and the key concept of judicial review Jeffrey Pittman - Legal Environment of Business 3

 For a current example of judicial review, see “Six new states seek to join multi-state health care reform challenge.”Six new states seek to join multi-state health care reform challenge Jeffrey Pittman - Legal Environment of Business 4

 Jurisdiction refers to a court’s power to hear and decide a case – the power to “speak” the law  Trial courts have original jurisdiction, that is, trial courts provide a location for lawsuits to begin Jeffrey Pittman - Legal Environment of Business 6

 To begin a lawsuit, a trial court must have subject matter jurisdiction, that is, jurisdiction based on the type of case and the amount in dispute  The trial court usually must also have in personam jurisdiction—jurisdiction over the defendant  Some cases require in rem jurisdiction over properties located within the court’s territory, instead of in personam jurisdiction Jeffrey Pittman - Legal Environment of Business 7

 Issues of venue are also important in a court’s decision to hear a case  Venue pertains to the particular geographic area where a lawsuit should be filed  Venue is often based on issues of convenience and pretrial publicity Jeffrey Pittman - Legal Environment of Business 8

A court acquires personal jurisdiction over a defendant through the following methods:  Waiver or consent by defendant regarding the jurisdiction question  Legal papers served on a defendant while the defendant is present in the forum state Jeffrey Pittman - Legal Environment of Business 9

 Legal service to a defendant located anywhere, where the defendant is a resident of the forum state  Incorporation in the forum state  Use of a long-arm statute Jeffrey Pittman - Legal Environment of Business 10

 Long-arm statutes bring an out-of-state defendant into a state where The defendant has sufficient minimum contacts with the forum state, and Jurisdiction will not offend traditional notions of fair play and substantial justice  The above limitations are to protect defendants as required by the due process clause of the Fourteenth Amendment Jeffrey Pittman - Legal Environment of Business 11

 Mastondrea v. Occidental Hotels presents issues of personal jurisdiction and minimum contacts  The court held that sufficient minimum contacts were present Jeffrey Pittman - Legal Environment of Business 12

 Regarding a Website being in a state, was there substantial, systemic and continuous activity in the forum state?  This usually requires an active Website versus a passive Web presence Jeffrey Pittman - Legal Environment of Business 13

State Trial Courts  Empowered to hear all disputes except exclusive federal questions (see page 34) Federal Trial Courts (District Courts)  Empowered to hear only: Federal question lawsuits, or Diversity of citizenship lawsuits Jeffrey Pittman - Legal Environment of Business 14

 View the Arkansas court structure via the link on the chapter handouts portion of my website  The Arkansas system is similar to a typical state system Jeffrey Pittman - Legal Environment of Business 16

 Each District Court in Arkansas has a small claims court division  In small claims court, you can sue for damages to personal property, for money owed, or for delivery of personal property that is worth $5,000 or less  If you sue for money damages, the maximum amount you may claim is $5000 Jeffrey Pittman - Legal Environment of Business 17

 No attorney or persons other than the plaintiff and the defendant are allowed to take part in the preparation or presentation of a case in small claims court  For more information, visit the Arkansas Judiciary Website, Jeffrey Pittman - Legal Environment of Business 18

 Appellate courts do not “try” cases but generally review only law and procedure - not fact decisions from the trial court  The losing party at trial is guaranteed one appeal; after the first appeal, further review is a matter of court discretion  In a criminal case only the defendant may appeal  Regarding appeals, see the writ of certiorari Jeffrey Pittman - Legal Environment of Business 19

 The Supreme Court, created by Article III of the US Constitution, is the highest court in the US  The Supreme Court is composed of nine justices who are nominated by the President and confirmed by the Senate Jeffrey Pittman - Legal Environment of Business 20

 All federal justices, including those on the Supreme Court, serve for life, absent impeachment  The age breakdown for the Supreme Court follows: Four justices in their 70s (Ginsburg, b. 1933; Scalia, b. 1936; Kennedy, b. 1936; Breyer, b. 1938) Two justices in their 60s (Thomas, b. 1948; Alito, b. 1950; ) Three justices in their 50s (Sotomayor, b. 1954; Roberts, b. 1955; Elena Kagan, b. 1960) Jeffrey Pittman - Legal Environment of Business 21

 Be familiar with the textbook materials in this section, especially Exhibit 2-3 and the related text material, and Concept Summary 2.3 Jeffrey Pittman - Legal Environment of Business 23