legal environment of business chapter 4

judicial review

the process by which courts decide on the constitutionality of legislative enactments & actions of the executive branch

in personam jurisdiction

court jurisdiction over the “person” involved in a legal action; personal jurisdiction

jurisdiction

the authority of a court to hear a case & decide a specific

in rem jurisdiction

court jurisdiction over a defendants property

long arm statute

a state statute that permits a state to obtain personal jurisdiction over nonresident defendants. a defendant must have “minimum contracts” with that state the statute to apply

probate courts

a state court of limited jurisdiction that conducts proceedings relating to the settlement of a decreased person’s estate

federal question

a question that pertains to the U.S. constitution, acts of congress, or treaties. a federal question provides a basis for federal jurisdiction

bankruptcy courts

a federal court of limited juridiction that handles only bankruptcy proceedings

diversity of citizenship

under article III, section 2 of the constitution, a basis for federal court jurisdiction over a lawsuit between (1) citizens of different states, (2) a foreign country & citizens of a state of different states or (3) citizens of a state & citizens or subjects of a foreign country. the amount in controversy must be more than $75,000 before a federal court can take jurisdiction in such cases

concurrent jurisdiction

jurisdiction that exists when 2 different courts have the power to hear a case. for example, some cases can be heard in either a federal or state court

exclusive jurisdiction

jurisdiction that exists when a case can be heard only in a particular court or type of court, such as a federal court or a state court

venue

the geographical district in which an action is tried & from which the jury is selected

small claims courts

special courts in which parties may litigate small claims (usually, claims involving $2,500 or less). attorneys are not required in small claims courts & in many states are not allowed to represent the parties

standing to sue

the requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. the plaintiff must demonstrate that he or she has been either injured or threatened with injury

question of fact

in a lawsuit, an issue involving a factual dispute. a question of fact can be decided by a judge or a jury

writ of certiorari

a writ from a higher court asking the lower court for the record of the case for review

question of law

in a lawsuit, an issue involving the application or interpretation of a law. only a judge, & not a jury, can decide a question of law

rule of four

a rule of the U.S. supreme court under which the court will not issue a writ of certiorari unless at least four justices agree to do so

litigation

the process of resolving a dispute through the court system

alternative dispute resolution (ADR)

the resolution of disputes in ways other than those involved in the traditional judicial process. negotiation, mediation, & arbitration are forms of ADR

negotiation

in regard to dispute settlement, a process in which parties attempt to settle their dispute without going to court, with or without attorneys to represent them

mediation

a method of settling disputes outside of court by using the services of a neutral 3rd party, called a mediator. the mediator acts as a communicating agent between the parties & suggests ways in which the parties can resolve their dispute

arbitration

the settling of a dispute by submitting it to a disinterested 3rd party (other than a court) who renders a decision. the decision may or may not be legally binding

award

in the context of litigation, the amount of money awarded to a plaintiff in a civil lawsuit as damages. in the context of arbitration, the arbitrators decision

arbitration clause

a clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court

mini-trial

a private proceeding in which each party to a dispute argues its position before the other side. a neutral 3rd party may be present & act as an advisor if the parties fail to each an agreement

early neutral case evaluation

a form of alternative dispute resolution in which a neutral 3rd party evalutes the strengths & weakness of the disputing parties positions. the evaluators opinions form the basis for negotiating a settlement

summary jury trials

a method of settling disputes in which a trial is held but the jurys verdict is not binding. the verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediatly follow

online dispute resolution (ODR)

the resolution of disputes with the assistance of organizations that offer dispute-resolution services via the internet