Business Law: Principles and Practices, 9th Edition solutions manual and test bank by Arnold J. Goldman | William D. Sigismond
Chapter 2—The Legal System in the United States and Its Constitutional Foundation
TRUE/FALSE
1. The United States has two separate and distinct court systems: the federal court system and the state and local court system.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
2. A trial court has the power to hear an appeal of a decision of a lower court.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
3. Courts enforce law by imposing punishment for violations or awarding damages to ones who have been injured.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
4. The federal court system varies from one area of the country to another.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
5. "Jurisdiction over the person" means that a court has the power to hear a case because it has authority over the parties.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 28 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
6. Both the U.S. district courts and the U.S. courts of appeal have jurisdiction to review decisions of the highest state courts.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 39 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
7. The U.S. Supreme Court was established by an act of Congress.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 39 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
8. At least four out of nine justices must agree to hear an appeal from a state or federal court before a case comes before the U.S. Supreme Court.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 41 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
9. The U.S. system of government is based on a concept known as separation of powers.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 43 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
10. Both statute law and case law are used in the United States legal system to reach decisions in civil lawsuits and criminal actions.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 43 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
11. Our legal system operates within the framework of litigation. Litigation refers to a lawsuit or legal action.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 44 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
12. In the United States, courts have the power to offer advisory opinions and answer hypothetical questions put to them by attorneys.
ANS: F PTS: 1 DIF: Difficulty: Easy
REF: p. 44 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
13. The Supreme Court case of Marbury v. Madison established the basis for the concept of judicial review in our legal system.
ANS: T PTS: 1 DIF: Difficulty: Moderate
REF: p. 43 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
14. The Fourth Amendment guarantees the individual's right to free speech.
ANS: F PTS: 1 DIF: Difficulty: Moderate
REF: p. 45 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
15. The first ten amendments to the U.S. Constitution are known as the Bill of Rights.
ANS: T PTS: 1 DIF: Difficulty: Easy
REF: p. 45 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
MULTIPLE CHOICE
1. The power of courts to hear and decide a case is known as
| a. | jurisdiction. |
| b. | constitutionality. |
| c. | judicial review. |
| d. | accommodation of interests. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
2. The role of an appellate court is to
| a. | try a case for the first time. |
| b. | review a case that has already been tried in a lower court. |
| c. | select a jury to help decide a case. |
| d. | select attorneys to present a case. |
ANS: B PTS: 1 DIF: Difficulty: Easy
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
3. A court of original jurisdiction is called a
| a. | trial court. |
| b. | higher court. |
| c. | review court. |
| d. | criminal court only. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 27 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
4. A court that has the power to hear almost any case brought before it is considered to have
| a. | appellate jurisdiction. |
| b. | general jurisdiction. |
| c. | constitutional jurisdiction. |
| d. | limited jurisdiction. |
ANS: B PTS: 1 DIF: Difficulty: Easy
REF: p. 28 OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
5. A small claims court is an example of a(n)
| a. | appellate court. |
| b. | criminal court. |
| c. | district court. |
| d. | local court. |
ANS: D PTS: 1 DIF: Difficulty: Easy
REF: p. 31 OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
6. Most state court systems include all of the following except
| a. | lower-level trial courts. |
| b. | an appellate court of final resort. |
| c. | intermediate-level appeals courts. |
| d. | bankruptcy courts. |
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. 29 OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
7. A federal court has limited jurisdiction in a
| a. | small claims action. |
| b. | constitutional issue. |
| c. | murder case. |
| d. | bankruptcy case. |
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. 38 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
8. The federal court system was established by
| a. | a mandate from the public. |
| b. | Congress. |
| c. | Article III, Section I of the Constitution. |
| d. | a vote of the judges on the Supreme Court. |
ANS: C PTS: 1 DIF: Difficulty: Easy
REF: p. 37 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
9. The trial courts in the federal court system are called
| a. | U.S. district courts. |
| b. | criminal courts. |
| c. | tax courts. |
| d. | bankruptcy courts. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 38 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
10. The Supreme Court of the United States derives its judicial power from the
| a. | U.S. Constitution. |
| b. | U.S. president. |
| c. | U.S. Congress. |
| d. | state courts. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 39 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
11. The thirteen intermediate courts of appeal of the federal court system are called
| a. | circuit courts. |
| b. | district courts. |
| c. | claims courts. |
| d. | supreme courts. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 39 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
12. The only court actually provided for by name in the U.S. Constitution is
| a. | the U.S. Supreme Court. |
| b. | the Court of International Trade. |
| c. | small claims court. |
| d. | commercial claims court. |
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. 39 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
13. A specialized federal court is
| a. | a U.S. district court. |
| b. | a U.S. court of appeals. |
| c. | a U.S. claims court. |
| d. | none of these. |
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. 38 OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
14. What are the grounds for trying a case in a federal court?
| a. | State crimes and diversity of citizenship |
| b. | Only diversity of citizenship cases involving $50,000 or more |
| c. | Federal issues and diversity of citizenship |
| d. | Bankruptcy and state crimes |
ANS: C PTS: 1 DIF: Difficulty: Easy
REF: p. 38 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
15. The U.S. Supreme Court consists of
| a. | four justices. |
| b. | five justices. |
| c. | eight justices. |
| d. | nine justices. |
ANS: D PTS: 1 DIF: Difficulty: Easy
REF: p. 41 OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
16. The number of jurors selected for a particular trial will
| a. | depend upon whether the trial is civil or criminal. |
| b. | vary according to the particular state where the jurors reside. |
| c. | vary according to the judge's wishes. |
| d. | be affected by both whether the trial is civil or criminal and by the particular state where the jurors reside, but not according to the judge's wishes. |
ANS: D PTS: 1 DIF: Difficulty: Easy
REF: p. 43 OBJ: LO: 2-4 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
17. The concept of judicial review was established by
| a. | Congress. |
| b. | the president. |
| c. | the judicial branch of government. |
| d. | English common law. |
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. 43 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Comprehension
18. The right of courts to review the decisions of lower courts is called
| a. | separation of powers. |
| b. | judicial review. |
| c. | litigation. |
| d. | none of these. |
ANS: B PTS: 1 DIF: Difficulty: Easy
REF: p. 43 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
19. The amendment to the U.S. Constitution that protects the individual's right to privacy by prohibiting unreasonable search and seizure by government is the
| a. | First Amendment. |
| b. | Fifth Amendment. |
| c. | Fourth Amendment. |
| d. | Sixth Amendment. |
ANS: C PTS: 1 DIF: Difficulty: Easy
REF: p. 46 OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking
STA: AICPA: BB-Legal KEY: Bloom's: Knowledge
COMPLETION
1. "Jurisdiction over the person" means that a court can hear and decide a case because it has authority over the ____________________ in the case.
ANS: parties
PTS: 1 DIF: Difficulty: Easy REF: p. 28
OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Knowledge
2. If a court has the power to hear only certain types of cases, it is said to have ____________________ jurisdiction.
ANS: limited
PTS: 1 DIF: Difficulty: Easy REF: p. 28
OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Knowledge
3. To provide fast and inexpensive hearings on minor claims, many states have established ____________________ courts.
ANS: small claims
PTS: 1 DIF: Difficulty: Easy REF: p. 31
OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
4. A state judicial system usually includes a(n) ____________________ court to handle deceased persons' estates.
ANS:
probate
surrogate's
PTS: 1 DIF: Difficulty: Moderate REF: p. 35
OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Application
5. The ____________________ is the highest court in the United States.
ANS: U.S. Supreme Court
PTS: 1 DIF: Difficulty: Easy REF: p. 38
OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Knowledge
6. The U.S. courts of appeals are divided into ____________________ circuits.
ANS: 13; thirteen
PTS: 1 DIF: Difficulty: Easy REF: p. 39
OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
7. Diversity of citizenship exists when the parties to a lawsuit are from different states and wish to have their case tried in a(n) ____________________ court.
ANS: federal; federal district
PTS: 1 DIF: Difficulty: Moderate REF: p. 38
OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
8. The concept of ____________________ resulted in the establishment of three branches of government.
ANS: separation of powers
PTS: 1 DIF: Difficulty: Moderate REF: p. 43
OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
9. In our courts, litigation is based on the ____________________, where the parties are represented by attorneys who are opponents of each other.
ANS: adversarial system
PTS: 1 DIF: Difficulty: Moderate REF: p. 44
OBJ: LO: 2-4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
10. One principle of our legal system is to acknowledge the equitable considerations of the parties involved. This principle is referred to as ____________________.
ANS: accommodation of interests
PTS: 1 DIF: Difficulty: Easy REF: p. 44
OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
SHORT ANSWER
1. What is the effect on a lawsuit if the person suing brings his or her case to a court that does not have the proper jurisdiction to hear the case?
ANS:
If a court does not have proper jurisdiction, it (the court) has no legitimate right by which judges can exercise their authority. Thus, in this case, the lawsuit could not be heard. The attorneys would need to reschedule the suit for a hearing in the proper court (i.e., the court with the proper jurisdiction).
PTS: 1 DIF: Difficulty: Moderate REF: p. 28
OBJ: LO: 2-1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Application
2. Dunn, a resident of Florida, was in an automobile accident caused by Greeley, a resident of Alabama. Dunn's van was damaged to the extent of $3,500. May Dunn sue Greeley in the federal district court for Alabama? Why or why not?
ANS:
No. Although federal district courts may hear cases involving parties from different states, the amount of a claim must be more than $75,000.
PTS: 1 DIF: Difficulty: Moderate REF: p. 38
OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Application
3. The ambassador from Austria to the United States wanted to sue the ambassador from Chile for injuries in a car accident caused by the Chilean ambassador. In which court will this suit be brought?
ANS:
U.S. Supreme Court. The Supreme Court has original jurisdiction to try cases involving foreign ambassadors.
PTS: 1 DIF: Difficulty: Moderate REF: p. 39
OBJ: LO: 2-3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Application
4. What is the essential role of Judicial Review in the U.S. Court System?
ANS:
Judicial review allows higher courts to review decisions of a lower court. The review process allows decisions and laws to be reversed or changed if they are not in harmony with existing laws and constitutions. The power of judicial review also enables the judicial branch to act as a check on the other two branches of government. For example, the Federal courts review acts of the U.S. Congress and state legislatures. This process makes judicial review the cornerstone of our Constitution since it assures full protection of our rights as individuals under the U.S. Constitution.
PTS: 1 DIF: Difficulty: Moderate REF: p. 43-44
OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
5. The state needed a portion of Beck's land to construct a highway. If the state decides to take the land for the public welfare over Beck's objection, may Beck have his case heard by a court?
ANS:
Yes. In the United States, based on the concept of judicial review, Beck would have the right to have his interests protected by having his case heard in court and, if he is dissatisfied with the ruling, having a higher court review this lower court's decision.
PTS: 1 DIF: Difficulty: Moderate REF: p. 36
OBJ: LO: 2-5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Application
6. What are the advantages and disadvantages of taking your case to small claims court? Refer to text.
ANS:
Advantages
| 1. | Fast. Once a claim is filed (which is a fairly easy process), your case will be heard shortly thereafter, generally within thirty to ninety days.The actual hearing lasts about one hour or less (sometimes only fifteen minutes). |
| 2. | Informal. Technical rules of evidence and procedure followed in a regular court trial are not strictly applicable in small claims court and an individual can represent himself or herself. |
| 3. | Inexpensive. Since a party is not required to have an attorney, no attorney's fees are required. Only a small filing fee is required. Further, a person with a legal claim might have been discouraged from filing the case in another court where legal fees and court fees might have exceeded the amount of the plaintiff's (person suing) claim. |
Disadvantages
| 1. | The maximum amount for which a person may sue in small claims court is limited by state law in each state. If you are seeking an amount that exceeds the small clailms courtlimit for yur state and you win your case, you will be unable to claim any amount over the state limit. |
| 2. | Most states allow only the loser to appeal. A few states allow no appeal. |
| 3. | Difficult to collect the judgment if you win your case. The court does not participate in the collection process. If you win, you are on your own and may have to take legal action to collect if the loser will not pay. You may have to hire a collection agency at great expense. |
PTS: 1 DIF: Difficulty: Moderate REF: p. 31-33
OBJ: LO: 2-2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal
KEY: Bloom's: Comprehension
CHAPTER 2
The Legal System in the United States and Its Constitutional Foundation
Chapter in a Nutshell
People’s rights are meaningless unless the laws (rules) protecting these rights can be enforced. Under the system of government in the United States, the courts represent the judicial branch of the United States government and serve as the protector of the rights of the individual. They interpret and enforce the laws by settling disputes. Many may think that because of their status that they can enact any laws they deem necessary. This, however, is not true. They first must have jurisdiction, which is the authority to hear a case. The United States has two separate and distinct court systems: the federal court system and the state and local court system. Federal courts are located throughout the country. In contrast, each state has its own court system with courts located in virtually every town and county. The courts carry out their responsibility by listening to and deciding cases that are brought before them according to where their jurisdiction to hear a case lies. Jurisdiction now includes cyberspace. Courts have the authority, in certain circumstances, to hear cases and settle disputes beyond the boundaries of their normal jurisdiction. This extended authority is often based on political and commercial reality. Of special interest in a state’s local court system is the small claims courts (sometimes called magistrate court or justice of the peace court). It is a convenient court to bring local disputes because an attorney is not needed to present your case and its proceedings are informal. In the federal system, the highest court is called the United States Supreme Court. This court is the highest court in the land, and has national jurisdiction. It is the only court created by the U.S. Constitution. When the U.S. Supreme Court rules on constitutional issues, the judgment is virtually final. The concept of judicial review, while not mentioned in the U.S. Constitution, is an important part of our legal system. It gives higher courts the power to review decisions of a lower court and rule on their constitutionality.
teaching POINTS
1. Under the system of government in the United States, the courts represent the judicial branch of the United States government. The essential role of the judiciary in the American governmental system is to interpret and enforce laws. Without this role, the rights of the people would be meaningless. In the United States we, as individuals are guided by the rule of law whether good or bad. No institution is above it.
2. The United States has two separate and distinct court systems: the federal court system and the state and local court system. Federal courts are located throughout the country, principally in the larger cities. Each state, however, has its own court system, with courts located in every town and county.
3. The federal court system uniformly follows the same rules and procedures. Rules and procedures vary among the state courts.
4. The federal courts in contrast to state courts have power to decide only those cases over which the Constitution gives them authority.
5. In spite of their differences, there are similarities between the federal and state court systems. Both systems have various levels of courts with different types of jurisdiction. They both have trial courts, where cases are first tried in lower courts and appellate courts (higher-level courts) that have the authority to review cases that have already been tried in the lower courts. Appellate court judges may affirm the trial court decision, reverse it, or order a new trial. In both federal and state systems, there is the highest court, which has the last say in a case. At both the federal and state levels there are civil and criminal courts. There are also a few special courts at both the federal and state levels that deal with only certain types of cases.
6. Although there are circumstances in which state and federal jurisdiction overlap (e.g., bank robbery and the sale of narcotics), cases generally cannot be tried in both systems.
7. Point out that appellate courts do not decide the facts of a case but consider only errors of law.
8. Basic due process requirements are common to both federal and state courts. Many state courts have modeled their rules after the rules followed in federal courts.
9. Courts have varying jurisdiction because there is a need to limit the work of each court and for certain courts to develop expertise.
10. Emphasize that jurisdiction not only involves the power to try a case or to hear an appeal from a decision but also determines whether a court will hear civil or criminal cases, and whether its jurisdiction will be general or limited.
11. Make the distinction between jurisdiction over the subject matter and jurisdiction over the person.
12. Discuss the impact that the electronic age has had on the term jurisdiction.
13. The Supreme Court of the United States is the highest court in the federal court system and the highest court in the land. It is a unique institution. Very few countries in the world have a court that functions like it. The Supreme Court can review decisions of both state and federal courts and rule on their constitutionality. It limits the number and types of cases that it hears so as to give the maximum amount of attention to the most important cases and to avoid decisions on matters that are best left to Congress and the state legislatures. It also limits the number and types of cases that it hears so that it does not appear to be interfering unduly in the lives of American citizens.
14. Point out that most criminal cases take place in state courts.
15. Many cases are tried in a small claims court (sometimes called magistrate court or justice or justice of the peace court), a local court established to provide a fast and inexpensive hearing on a claim. (See boxed insert below.) The downside is that if you win your case you are on your own in collecting from the loser. Further, if the loser is “judgment proof,” don’t bother trying to collect. Mention that in those few states where businesses are not allowed to sue in small claims court, they may sue in a commercial claims court. Keep in mind that a person in a serious dispute with someone should not turn to small claims court to bring a claim. While on the topic of small claims court, the section on “How to Make a Winning Case in Court” should precipitate some interesting responses from students.
16. Discuss the meaning of the term certiorari.
17. Point out that at the federal level, in some situations an appeal can be taken directly from a U.S. District Court to the U.S. Supreme Court; and at the state level, in some situations an appeal can be taken directly from a state trial court of general jurisdiction to the highest-level state appellate court.
18. Point out that our legal system is unique. Although other countries have legal systems that resemble ours, the U.S. system combines elements almost unknown in other countries. At this point, discuss the constitutional principles on which our system is based with emphasis on our constitutional rights under the Bill of Rights. Point out that under the First Amendment, protected speech now includes electronic speech (the Internet). This move to electronics has been the subject of controversy as pointed out in the chapter.
19. Drug courts seem to be getting more “play” today. Point out that all fifty states have working drug courts.
SMALL CLAIMS COURT: IMPORTANT CHARACTERISTICS
2. It is economical because no attorneys’ fees are involved and court fees are minimal.
3. A small claim can be for money only. The dollar amount you may sue for varies from state to state. The range in many states falls between $2,500 and $25,000 with a concentration in the $5,000 and $10,000 range.
4. Typical small claims include an action to recover money from:
· a tenant who fails to repay rent due the landlord, or for a landlord who for no good reason refuses to return the tenants security deposit
· a person who fails to pay a loan you made to him or her
· a travel agent who fails to arrange a tour properly
· an appliance repairperson who has done a poor job at repairing your appliance and refuses to correct the situation
· a business firm who has broken its contract and refuses to return your cash deposit
· some negligence cases
5. Any adult person may bring an action in a small claims court in the city, town, or village where the party being sued lives, works, or has a place of business.
6. A non-jury trial in front of a judge is held. At this trial, each party (Plaintiff and Defendant) gives testimony (his or her side of the story). Each party should be brief and clear when explaining her case to the judge. Creditable documentation to support your testimony (evidence) would be very helpful. (An example is a letter written by the plaintiff to the defendant asking for payment but with no response from the defendant. Evidence of telephone conversations is also creditable evidence.) After all the evidence is in, the judge will consider this evidence and render a decision. The decision is usually mailed to the parties within a few days of the trial. In rare cases, the decision may be announced immediately after the trial.
7. The winning party is entitled to collect money from the losing party once the judge’s decision is entered in the court records, but keep in mind that the court that awarded the money to the winning party is not legally obligated to help collect that money. The entry of the decision in the court records is called a judgment. Don’t always count on collecting the money especially if the losing party is “judgment proof.”
8. The judge’s decision may be appealed (reviewed by a higher court) only if the losing party believes that justice was not done (i.e., that the judge did not render a just and fair decision). Technical mistakes made during the trial are not grounds for an appeal.
challenges in the chapter
1. The fact that our legal system has two separate court systems may be confusing to students. Consequently, they may not understand why some courts can hear particular cases but not others. Most cases are tried in state courts, which are established in each state under the authority of the state government. Federal courts are fewer in number. Only about 10 percent of all cases are tried in these courts. A case may be filed in federal court only if there is a specific statute or constitutional provision granting the federal courts jurisdiction to hear the case.
2. Separation of powers is often a difficult concept for students to understand, particularly when there is overlapping of the powers of the three branches of government. Point out that although each branch of government has its function as specified in the Constitution, there was never any intent to have the three branches of government totally and completely independent of one another.
3. A question often raised about the adversarial system concerns the validity of such a system when attorneys vary in both ability and experience. Another concern is that some people can hire qualified attorneys, whereas others cannot. In spite of these concerns, the system has worked quite well.
4. Jurisdiction is a difficult concept to understand, particularly jurisdiction over the subject matter. Emphasize that it is important to limit the activities of courts so that parties to a lawsuit can have a quick and fair hearing. It is also important to have courts specialize in various types of cases so that they can become expert in hearing specific matters.
5. Some students have never read the Constitution. Time permitting, you may wish to review with students at least Articles I, II, and III, the Bill of Rights, and the Fourteenth Amendment. (A copy of the Constitution is found in Appendix D of the text). Discussions about the topic of constitutional rights is a topic that most students want to talk about and could prove to be time consuming to the point where you will need to move on because of all the material left to cover in the course. Nevertheless you will need to hear students out. In your planning set a time limit and then express your need to move on.
TEACHING TIPS
1. An important point to make is the uniqueness of our system of government. There are three separate branches with each one keeping “checks and balances” on the other. The legislative branch - Congress creates laws; the executive branch - the president of the U.S. carries out the laws passed by Congress; the judicial branch - the Supreme Court of the United States which has the power to declare whether laws passed by Congress meet constitutional requirements and whether the executive branch is carrying out the laws passed by the legislative branch in accordance with the constitution.
2. Use a PowerPoint® presentation while discussing the Federal Courts. You can customize the presentation to depict the court system specific to your state, since the PowerPoint® presentation available with this text is general in character.
3. Students who have had experience in the state court system may wish to share it with the class.
4. The concept of judicial review is very important. Mention the case of Marbury v. Madison which established the doctrine of judicial review giving the Supreme Court of the U.S. the power to determine if Congress has acted constitutionally. Note that stare decisis is not as important when higher courts such as federal courts and the U.S. Supreme Courts review decisions of lower courts under the concept of judicial review. Courts with the power of judicial review are more willing to overrule prior case law statutes and other regulations.
5. Take typical cases, such as an automobile accident, a burglary, a breach of contract, or a constitutional issue, and illustrate how these cases would proceed through the courts, including possible appeal to the U.S. Supreme Court. Also show how a case has its beginning and end in the state court system and that in certain cases cannot be appealed to the U.S. Supreme Court.
6. Compare the functions of the courts with those of other decision-making agencies such as legislative bodies and administrative agencies.
7. You may want to focus on some of the issues surrounding the amendments contained in the Bill of Rights, especially the First and Fourth Amendments. I’m sure issues related to these two amendments will generate lots of discussion (e.g., placing electronic speech under the umbrella of speech protected by the First Amendment). Students should feel free to express ideas even if they seem to be unconventional or unpopular. I say this with some reservation because in “Challenges to the Chapter” I make the point that you need to limit time on this topic because of all the major topics that need to be covered in a business law course. Seems to be a catch 22.
8. If you have international students in the class, discuss the differences between the court systems in their countries and the system in your state or locality.
9. Have students research the case of Dr. Samuel Sheppard (384 U.S. 333). It is an older case but very interesting because of the many court battles involved. Sheppard was convicted of murdering his wife, but the Supreme Court reversed the conviction based upon a clear infringement of his due process rights in not receiving a fair trial.
10. If possible, schedule a trip to the local, federal, or state court. Contact the clerk of the particular court you wish to visit or your local bar association to arrange a tour that would be interesting and meaningful to you students.
ANSWERS TO THE CHAPTER ACTIVITIES
Questions and Problems for Discussion
1. In the United States, the courts represent the judicial branch of the U.S. Government. Their role is to settle disputes by interpreting and enforcing law. The courts carry out their responsibility by deciding cases that are brought up before them. To decide a case means to listen to a dispute generally before an impartial jury and two opposing attorneys. Various issues are decided by the court—civil and criminal; breach of contract; constitutional questions; equity questions. When a case is decided, the court will enforce the law by imposing punishment on a guilty person in a criminal action; award damages to an injured party in a civil action; or grant relief in an equity case.
2. The vast majority of legal disputes in the U.S. are handled at the state court level subject only to the limits of the U.S. Constitution, their own state constitutions and state statutes. State and local courts are the courts which citizens are most likely to have contact. They handle criminal matters, legal business concerning probate of estates, traffic and family matters, real estate and business contracts, and personal injury claims.
3. Yes. Because the amount of the claim exceeds $75,000.
4. A small claims court (magistrate court; justice of the peace court) is a local curt established to provide a fast, and in expensive forum for resolving civil matters. Technical rule of evidence and procedure normally followed in a formal court trial are not strictly applicable but the laws applied are the same. The average case is heard within thirty to ninety days after the complaint is filed. The actual hearing generally lasts one hour or less and there is no jury. In many cases, the parties may proceed without attorneys which saves on the cost of attorney’s fees.
5. In the Fifth and Fourteenth Amendments to the U.S. Constitution. These amendments provide that no person shall be deprived “of life, liberty, or property, without due process of law.”
6. Yes. While the gang is criminally liable for what they did you may bring a civil law suit for the injuries and pain as well as pain and suffering in the appropriate state court. State trial courts have authority to hear cases involving any questions (civil or criminal), any amount of money, or any degree of crime. They generally handle all serious disputes such as the one in this example.
7. No. A federal court cannot hear an appeal from a state court unless a federal question is involved. Here, the facts indicate that the controversy concerned a money dispute between two citizens of the same state. Thus, the appellate jurisdiction lies within the state system.
8. (Answers will vary.) The Supreme Court of the U,S, in Lost Angeles City Council v. Taxpayers for Vincent, 466 U.S. 789 (104 S.Ct. 2118, 80 L.Ed. 2d 772) in a similar case upheld the ordinance. The court felt that a city ordinance passed to improve the appearance of the entire city outweighed the slight curtailment of free expression in denying the request of the mayoral candidates. Besides, the court felt that the candidates had numerous other forms for free public expression related to the campaign.
Legal Literacy
Discussion Questions
(Answers to questions may not necessarily be found in the chapters where the questions appear.)
1. Are the rights provided by the Bill of Rights absolute?
2. Why is the Fifth Amendment significant?
3. Do you think that speech on the internet should be protected by the First Amendment?
4. A case can be properly brought in a certain court only if the court has jurisdiction. There are two types of jurisdiction the court must possess. Name and describe each type.
Investigating the Law In or Out of Class
Issues to debate:
1. The Supreme Court alone is the final interpreter of the Constitution.
2. The Supreme Court alone is not the final interpreter of the Constitution. Members of each branch of government (executive, legislative, and judicial) possess legitimate and sometimes necessary authority to interpret the constitution.
To Do: Set the stage for two groups of students (two students in each group) chosen from volunteers for extra credit to debate the above issue (or the class instructor may determine the configuration of the groups). Obviously the students selected for the debate will need to do some preparation (including research) before the debate. The college research librarian is an excellent contact. Faculty in the History and Political Science Department are also excellent contacts. Rather than conduct a debate, the instructor could use the topic during an in class discussion.
Solutions
Suppose You’re the Judge
1. The Sixth Amendment through the Fourteenth Amendment.
2. A writ of certiorari.
3. No.
You React
1. Reynolds’ Fifth and Sixth Amendment rights.
2. Criminal court.
3. Yes.
4. Under his rights under the Sixth Amendment, the courts will appoint one to represent him.
Legal Literacy
1. No. They are written in general terms; consequently challenges have left the U.S. Supreme Court to finally interpret the meaning of an amendment when called upon to do so.
2. It guarantees due process of law throughout the criminal justice process. It mandates that the justice system respect the rights of the accused person.
3. (Answers will vary.) There are those who will say absolutely that everyone should be able to have their views fully expressed on any form of medium without worry of legal sanctions. Then there are those who have strong feelings about not allowing this form of protection in space. Of course, this latter group will never get far in trying to disallow it. The U.S. Supreme Court has already ruled in Reno v. ACLU (1997) that speech on the Internet already receives the highest level of protection. It stated “our cases provide no basis for qualifying the level of First Amendment scrutiny that should be applied to this medium.”
4. First a court must have jurisdiction over the subject matter of the dispute. This means the court can hear and decide only certain types of cases as for example, misdemeanor criminal cases and civil damages up to certain amount of money. Some courts may deal only with domestic relations such as divorce or juvenile delinquents. Secondly, a court must have jurisdiction over the parties in the case as for example the defendant who lives in a certain geographic area. If you go the wrong court, proper jurisdiction will not exist and you cannot obtain a hearing.
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