©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law 6 th Edition Chapter 2 Traditional and Online Dispute Resolution

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 2 Judiciary’s Role Judiciary interprets and applies law to resolve disputes. Judicial Review is not mentioned in the Constitution but established in Marbury v. Madison (1803). –Power of the court to “decide what the law is.” Process by which a court decides upon constitutionality of legislative enactments and executive actions. Judiciary interprets and applies law to resolve disputes. Judicial Review is not mentioned in the Constitution but established in Marbury v. Madison (1803). –Power of the court to “decide what the law is.” Process by which a court decides upon constitutionality of legislative enactments and executive actions.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 3 Basic Judicial Requirements Jurisdiction—power of a court to decide a case. –Personal Jurisdiction over people within a court’s geographical area. Long-Arm statutes give jurisdiction over non- residents with “minimum contacts” with court’s geographical area. Corporations: minimum contact if business is transaction within the area. Jurisdiction—power of a court to decide a case. –Personal Jurisdiction over people within a court’s geographical area. Long-Arm statutes give jurisdiction over non- residents with “minimum contacts” with court’s geographical area. Corporations: minimum contact if business is transaction within the area.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 4 Basic Judicial Requirements Jurisdiction (cont’d) –In Rem Jurisdiction over property located within the court’s geographical area. –Subject Matter Jurisdiction over particular types of cases. –Defined by statute: Probate, bankruptcy, divorce, etc. –Original and Appellate Jurisdiction. Jurisdiction (cont’d) –In Rem Jurisdiction over property located within the court’s geographical area. –Subject Matter Jurisdiction over particular types of cases. –Defined by statute: Probate, bankruptcy, divorce, etc. –Original and Appellate Jurisdiction.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 5 Basic Judicial Requirements Federal Courts can exercise jurisdiction over cases involving: –Federal Questions. –Diversity of Citizenship: Parties from different states involving at least $75,000. –Bankruptcy, patents and suits between states. Concurrent jurisdiction with state courts. Federal Courts can exercise jurisdiction over cases involving: –Federal Questions. –Diversity of Citizenship: Parties from different states involving at least $75,000. –Bankruptcy, patents and suits between states. Concurrent jurisdiction with state courts.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 6 Jurisdiction in Cyberspace Internet transcends geographical and political borders. –Case 2.1 International League Against Racism and Antisemitism v. Yahoo! Inc. (2000). Courts use the “sliding-scale” approach to determine jurisdiction. Internet transcends geographical and political borders. –Case 2.1 International League Against Racism and Antisemitism v. Yahoo! Inc. (2000). Courts use the “sliding-scale” approach to determine jurisdiction. Passive AdsE-CommerceSome Business Yes No Depends

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 7 Basic Judicial Requirements Venue—most appropriate location for a trial. –Court balances parties interests. Standing to Sue—plaintiff must have a legally protected and tangible interest which has been injured. Venue—most appropriate location for a trial. –Court balances parties interests. Standing to Sue—plaintiff must have a legally protected and tangible interest which has been injured.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 8 State and Federal Court Systems State Supreme Court State Appellate Courts State Trial Courts Municipal Courts U.S. Supreme Court U.S. Courts of Appeal U.S. District Courts U.S. Specialized Federal Admin.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 9 Following a State Court Case Pleadings. –Plaintiff’s Complaint. Case 2.2 Rio Properties, Inc. V. Rio International Interlink (2002). –Summons. –Defendant’s Answer /Motion to Dismiss. Pre-Trial Motions. –Motion for Judgment on the Pleadings. –Motion for Summary Judgment. Pleadings. –Plaintiff’s Complaint. Case 2.2 Rio Properties, Inc. V. Rio International Interlink (2002). –Summons. –Defendant’s Answer /Motion to Dismiss. Pre-Trial Motions. –Motion for Judgment on the Pleadings. –Motion for Summary Judgment.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 10 Civil Procedures in State Court Discovery. –Depositions and Interrogatories. –Other Information. –Electronic Discovery and Compliance Costs. Case 2.3 Zubalake v. UBS Warburg LLC (2003). Pre-Trial Conference. Jury Selection (Voir Dire). Discovery. –Depositions and Interrogatories. –Other Information. –Electronic Discovery and Compliance Costs. Case 2.3 Zubalake v. UBS Warburg LLC (2003). Pre-Trial Conference. Jury Selection (Voir Dire).

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 11 Civil Procedures in State Court Trial. –Opening arguments. –Plaintiff’s Case in Chief. Defense cross-examines Plaintiff’s witnesses. –Defense Case in Chief. Plaintiff cross-examines Defense witnesses. –Closing Arguments. Verdict / Motion JNOV /Judgment. Appeal. Trial. –Opening arguments. –Plaintiff’s Case in Chief. Defense cross-examines Plaintiff’s witnesses. –Defense Case in Chief. Plaintiff cross-examines Defense witnesses. –Closing Arguments. Verdict / Motion JNOV /Judgment. Appeal.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 12 Courts Adapt to the Online World Electronic Filing. Courts Online (websites, court dockets). Cyber Courts and Online Dispute (Michigan legislation). Alternative Dispute Resolution (ADR): –Negotiation. –Mediation. –Arbitration (employment contracts). Case 2.4 Circuit City Stores, Inc. Adams (2001). Electronic Filing. Courts Online (websites, court dockets). Cyber Courts and Online Dispute (Michigan legislation). Alternative Dispute Resolution (ADR): –Negotiation. –Mediation. –Arbitration (employment contracts). Case 2.4 Circuit City Stores, Inc. Adams (2001).

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 13 Other Types of ADR Early Neutral Case Evaluation. Mini-Trial. Summary Jury Trials. Online Dispute Resolution: –Negotiation (Cybersettle.com). –Arbitration Programs (VirtualMagistrate). Early Neutral Case Evaluation. Mini-Trial. Summary Jury Trials. Online Dispute Resolution: –Negotiation (Cybersettle.com). –Arbitration Programs (VirtualMagistrate).