1. Copyright 2010 by South-Western/Cengage Learning Chapter 3 The Court System and Dispute Resolution

2. Copyright 2010 by South-Western/Cengage Learning Business Disputes Hilton and Starwood Resorts Wal-Mart and a customer injured by a falling reindeer Sometimes you just need to know where you stand – Brighton Collectibles 1-1

3. Copyright 2010 by South-Western/Cengage Learning 3-2 Types of ADR Arbitration—Oldest Form of ADR –Parties submit grievances and evidence to a third party expert in an informal setting –American Arbitration Association provides many arbitrators and rules

4. Copyright 2010 by South-Western/Cengage Learning 3-3 Types of ADR Mediation –Parties use a go-between to negotiate and communicate Used in international transactions Mediator can offer suggestions for resolution Not binding Medarb –Recent creation in which arbitrator first attempt to mediate settlement –If unsuccessfully the case goes to arbitration

5. Copyright 2010 by South-Western/Cengage Learning 3-4 Types of ADR Minitrial –Small-scale trial where parties present case to a judge with experience in the field or to a neutral advisor Advisor or judge makes decision Can motivate parties to resolve differences even if the results are not binding

6. Copyright 2010 by South-Western/Cengage Learning 3-5 Types of ADR Rent-a-Judge –Trial held in commercial as opposed to a public court Pay fees for courtroom and judge Example: “The People’s Court” TV show Summary Jury Trials –Gives parties an idea about jury’s perceptions –Used after discovery is complete

7. Copyright 2010 by South-Western/Cengage Learning 3-6 Types of ADR Early Neutral Evaluation –Consultant or volunteer gives parties an assessment of the position Generally used prior to discovery Saves expenses if parties settle following the evaluation Peer Review –Review of Management’s action against employee by a group of peer – employees –Reduces litigation cost

8. Copyright 2010 by South-Western/Cengage Learning 3-7 Litigation vs. ADR ExpensiveLess expensive (some changes here) Strict procedures and timing Flexible Judge and juries unknown Parties select Judicial enforcementEnforcement by good faith

9. Copyright 2010 by South-Western/Cengage Learning 3-8 Litigation vs. ADR Technical discovery rules Open lines of communication Judicial constraints of precedent Parties can agree to virtually anything Remedies limitedCreative remedies Docket backlogParties set time line Public proceedingPrivate Control by lawyersControl by parties

10. Copyright 2010 by South-Western/Cengage Learning 3-9 Trial Courts –Place where case begins –Jury hears cases and decides disputed issues of fact –Single judge presides over case Appellate Courts –Review actions of trial court –Usually have published opinions for uniformity and consistency –No trials held - panel of judges hears case Types of Courts

11. Copyright 2010 by South-Western/Cengage Learning 3-10 Consider 3.1 The GPA Computation Rule –A course in which a grade of “C” or better has been earned may not be repeated. The second entry will not be counted in earned hours or grade index for graduation

12. Copyright 2010 by South-Western/Cengage Learning 3-11 The Federal Court System

13. Copyright 2010 by South-Western/Cengage Learning 3-12 State Court Systems

14. Copyright 2010 by South-Western/Cengage Learning SOX and Privilege 3-13 1.Lawyers for corporation represent corporation, not employees 2.Lawyers for corporation must report fraud to CEO 3.If no action, must notify board 4.If no action, must resign

15. Copyright 2010 by South-Western/Cengage Learning 3-43 The Trial Process

16. Copyright 2010 by South-Western/Cengage Learning 3-15 Steps in Civil Litigation

17. Copyright 2010 by South-Western/Cengage Learning 3-16 Steps in Civil Litigation (cont’d)