Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany CONTEMPORARY BUSINESS AND ONLINE COMMERCE LAW 6 th Edition by Henry R. Cheeseman Chapter 3 Court Systems and Jurisdiction

3 - 2Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. There Are Two Major Court Systems in the U.S.: 1.The federal court system 2.The court systems of the 50 states and the District of Columbia Each of these systems has jurisdiction to hear different types of lawsuits.

3 - 3Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Dispute Resolution Litigation The process of bringing, maintaining, and defending a lawsuit difficult time-consuming costly complex procedural rulesLitigation The process of bringing, maintaining, and defending a lawsuit difficult time-consuming costly complex procedural rules Alternative Dispute Resolution Nonjudicial dispute resolution developed in response to the expense and difficulty of bringing a lawsuit. Being used more often to resolve commercial and e-commerce disputes. Alternative Dispute Resolution Nonjudicial dispute resolution developed in response to the expense and difficulty of bringing a lawsuit. Being used more often to resolve commercial and e-commerce disputes.

3 - 4Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. 1. Limited- Jurisdiction Trial Courts 2. General- Jurisdiction Trial Courts 4. State Supreme Court 3. Intermediate Appellate Courts The State Court Systems (1 of 4)

3 - 5Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The State Court Systems (2 of 4) Traffic courts Juvenile courts Justice-of-the-peace courts Probate courts Traffic courts Juvenile courts Justice-of-the-peace courts Probate courts Family law courts Small claims courts Courts that hear misdemeanor criminal law cases and civil lawsuits under a certain dollar amount Family law courts Small claims courts Courts that hear misdemeanor criminal law cases and civil lawsuits under a certain dollar amount Limited – Jurisdiction Trial Court Limited – Jurisdiction Trial Court Hears matters of a specialized or limited nature

3 - 6Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The State Court Systems (3 of 4) General – Jurisdiction Trial Court Hears cases of a general nature that are not within the jurisdiction of limited- jurisdiction courts Testimony and evidence at trial are recorded and stored for future reference General – Jurisdiction Trial Court Hears cases of a general nature that are not within the jurisdiction of limited- jurisdiction courts Testimony and evidence at trial are recorded and stored for future reference Intermediate Appellate Court An intermediate court that hears appeals from trial courts Reviews the trial court record to determine if there have been any errors at trial that would require reversal or modification of the decision Intermediate Appellate Court An intermediate court that hears appeals from trial courts Reviews the trial court record to determine if there have been any errors at trial that would require reversal or modification of the decision

3 - 7Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The State Court Systems (4 of 4) State Supreme Court State Supreme Court The highest court in a state court system Hears appeals from intermediate state courts and certain trial courts No new evidence or testimony is heard Decisions of state supreme courts are final, unless a question of law is involved that is appealable to the U.S. Supreme Court.

3 - 8Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. State Supreme Court State Appeals Courts State Trial Courts of General Jurisdiction Civil Division Criminal Division Probate Division Domestic Relations Division Juvenile Division Small Claims Courts Justice of the Peace Courts Municipal Courts Appeal to U.S. Supreme Court A Typical State Court System

3 - 9Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Factors to Consider in Deciding to Bring or Settle a Lawsuit: (1 of 2) The probability of winning or losing The amount of money to be won or lost Lawyers’ fees and other costs of litigation Loss of time by managers and other personnel The long-term effects on the relationship and reputation of the parties The amount of prejudgment interest provided by law

3 - 10Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Factors to Consider in Deciding to Bring or Settle a Lawsuit: (2 of 2) The aggravation and psychological costs associated with a lawsuit The unpredictability of the legal system and the possibility of error Other factors peculiar to the parties and lawsuit

3 - 11Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. 1. Special Federal Courts 2. U.S. District Courts 4. U.S. Supreme Court 3. U.S. Courts Of Appeals The Federal Court System (1 of 8)

3 - 12Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (2 of 8) Special Federal Courts Special Federal Courts Federal courts that hear matters of specialized or limited jurisdiction They include: U.S. Tax Court U.S. Claims Court U.S. Court of International Trade U.S. Bankruptcy Courts

3 - 13Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (3 of 8) U.S. District Courts U.S. District Courts The federal court system’s trial courts of general jurisdiction. They are empowered to: Impanel juries Receive evidence Hear testimony Decide cases Most federal cases originate in federal district court.

3 - 14Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (4 of 8) U.S. Courts of Appeals U.S. Courts of Appeals The federal court system’s intermediate appellate courts These courts hear appeals from the district courts located in their circuit.

3 - 15Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (5 of 8) U.S. Courts of Appeals U.S. Courts of Appeals (continued) These courts review the record of the lower court or administrative agency proceedings to determine if there has been any error that would warrant reversal or modification of the lower court decision. No new evidence or testimony is heard.

3 - 16Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (6 of 8) U.S. Supreme Court U.S. Supreme Court The Supreme Court was created by Article III of the U.S. Constitution. The Supreme Court is the highest court in the land and is located in Washington, D.C.

3 - 17Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (7 of 8) U.S. Supreme Court U.S. Supreme Court (continued) The Supreme Court hears appeals from federal circuit courts of appeals and, under certain circumstances, from federal district courts, special federal courts, and the highest state courts. No new evidence or testimony is heard.

3 - 18Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System (8 of 8) U.S. Supreme Court U.S. Supreme Court (continued) The lower court record is reviewed to determine whether there has been an error that warrants a reversal or modification of the decision. The Supreme Court’s decision is final.

3 - 19Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Federal Court System U.S. Supreme Court (Washington, D.C.) U.S. Court of Appeals (for 11 Territorial Circuits and D.C. Circuit) U.S. Court of Appeals for the Federal Circuit Federal Adminis- trative Agencies U.S. District Courts U.S. Tax Court U.S. Bankruptcy Courts U.S. Claims Court U.S. Court of Inter- national Trade U.S. Patent and Trademark Office

3 - 20Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Decisions by the U.S. Supreme Court (1 of 2) Petition for Certiorai A petition asking the Supreme Court to hear one’s case Petition for Certiorai A petition asking the Supreme Court to hear one’s case Writ of Certiorai An official notice that the Supreme Court will review one’s case Writ of Certiorai An official notice that the Supreme Court will review one’s case

3 - 21Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Decisions by the U.S. Supreme Court (2 of 2) The Supreme Court can issue the following types of decisions: Unanimous decision Majority decision Plurality decision Tie decision

3 - 22Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. Jurisdiction of Federal and State Courts Exclusive State Jurisdiction Matters not subject to federal jurisdiction Exclusive Federal Jurisdiction 1.Admiralty 2.Antitrust 3.Bankruptcy 4.Copyright 5.Federal Crimes 6.Patents 7.Suits against the U.S. 8.Other specified federal statutes Concurrent Jurisdiction 1.Federal questions 2.Diversity of citizenship cases

3 - 23Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. The Jurisdiction and Venue of Courts 1.Standing to sue 2.Subject matter jurisdiction 3.In personam jurisdiction (or personal jurisdiction) 4.In rem jurisdiction 1.Standing to sue 2.Subject matter jurisdiction 3.In personam jurisdiction (or personal jurisdiction) 4.In rem jurisdiction 5.Quasi in rem jurisdiction 6.Long-arm statutes 7.Venue 8.Forum selection clause 5.Quasi in rem jurisdiction 6.Long-arm statutes 7.Venue 8.Forum selection clause