Legal Environments of Business Court Systems Chapter 3

Standards O BMA-LEB-2: O BMA-LEB-2: Compare and contrast ethics and the law for a business. O BMA-LEB-3: O BMA-LEB-3: Explain and illustrate through simulation the process by which a legal dispute is resolved for a business and personal issue. O BMA-LEB-4: O BMA-LEB-4: Investigate major crimes affecting business and the impact on a business. O BMA-LEB-5: O BMA-LEB-5: Evaluate the use of tort law in a business setting. O BMA-LEB-10: O BMA-LEB-10: Explore how student organizations are an integral part of career and technology education courses.

Essential Question O How can you settle a dispute without going to court? O How is a legal dispute resolved through the courts? O What are the different levels of courts, their jurisdictions, and powers?

Dispute Resolution O So often, many people would rather litigate (allow courts to resolve disputes) than try to settle disputes. O Disputes can be settled without going to court. Parties involved can reach a mutually acceptable solution.

mediator O As an alternatives to face-to-face negotiations, parties can invite a mediator to assist them. O Independent third party – no ties. O Actions of a mediator are advisory (not legally binding on the parties).

arbitrator O In some cases, parties may retain and arbitrator who usually holds an informal hearing to determine what happened. O The arbitrator’s decision, unlike that of a mediator, is binding on both parties. O Decision can be enforced by court order if necessary. O Sometimes provisions for arbitration are included in the original agreement between parties.

How Do Courts Settle Disputes? O Court O Court – governmental forum that administers justice under the law. O Courts decide disputes between private individuals and try criminal cases. O Courts may award damages or order other appropriate relief in resolving private disputes and impose punishment (fine and/or imprisonment) in the criminal case.

O Courts follow impartial and thorough procedures to make decisions. O Witnesses are called to give testimony. O The accused party is allowed equal opportunity to argue his/her side of the case.

Levels of Courts O Two levels of courts are involved in deciding a dispute. O Trial courts O Appellate courts

Trial Courts is first heard. O Court in which dispute is first heard. O Trial court hears witness testify, review other pertinent evidence firsthand to determine the facts of a case. verdict O Trial court will apply what it selects as the appropriate law to the facts to reach a verdict (decision) in the case. original jurisdiction O Trial courts have the power to make these initial decisions of fact and law, so trial courts have original jurisdiction over the case.

judge lawyers clerkssheriffsor marshals, bailiffs jury O Trial courts consist not only of a judge, (chief officer of the court) but lawyers (officers of the court) and other court personnel necessary for its operation: clerks, sheriffs or marshals, bailiffs, and if a jury is required in the case, jury members.

Duties of court officers O Clerks O Clerks enter cases on the court calendar, keep records of proceedings, and often compute court costs. O Sheriffsbailiffs O Sheriffs or other deputies serve as bailiffs, who summon witnesses, keep order in the court, and take steps to carry out judgments in the state court systems. O Marshals O Marshals have these duties in the federal court system. O Juries O Juries are citizens sworn by a court to decided issues of fact in court cases.

Appellate Court O Appellate courts O Appellate courts - reviews decisions of lower courts when a party claims and error of law was made during the lower court’s proceedings. appellate court judges determination of fact O Because appellate court judges were not present to evaluate firsthand the truthfulness of witnesses, their testimony, and other evidence, they do not make determination of fact. solely with issues of law O Instead, appellate jurisdiction is concerned solely with issues of law.

transcrip O Appellate courts examine the transcript (which is a verbatim record of what went on at trial). appellate briefs O Read appellate briefs (written arguments on the issues of law, submitted by the opposing attorneys), O Listen to attorney’s oral arguments in support of these briefs and question attorneys about the case.

affirmed reversed amendedremanded O By taking these inputs into consideration, appellate courts decide whether the decision of the lower court should be affirmed (upheld), reversed (overturned), amended (changed), remanded (sent back to the trial court for corrective action or possibly a new trial), or a combination of these.

Federal Court System O Origin of the Federal Court System came about through Article III of the Constitution, the people conferred the power to judge certain criminals and civil matters on a system of federal courts and did not feel a Supreme Court would be needed under the Constitution.

Federal Judiciary Act O As a result, after George Washington’s inauguration as the nation’s first president, it took nearly six months for Congress to utilize the power it was granted under Article III and pass the Federal Judiciary Act. “ordained and established O This act “ordained and established” the U.S. Supreme Court (USSC) and thirteen district courts.

Federal Judiciary Act O In 1891, approximately a century after passing the initial Federal Judiciary Act, Congress passed a Judiciary Act that established the federal Court of Appeals. O Certain specialized courts were created as the need arose (e.g., tax, bankruptcy, juvenile courts) O While the federal courts receive their power to adjudicate cases from the Constitution, the Constitution left it to Congress the power to ordain and establish these courts as deemed necessary.

Jurisdiction of Federal Courts U.S. Supreme Court Federal Court of Appeals Federal District Courts

general jurisdiction O A court with general jurisdiction can hear almost any kind of case. specialized jurisdictions O A court with specialized jurisdictions hears only one specific type of case. O Chart on Pg. 53 in book

Federal Court System UNITED STATES SUPREME COURT 13 UNITED STATES COURTS OF APPEALS (12 Circuit Courts) (1 Court of Appeals for the Federal Circuit) UNITED STATES DISTRICT COURTS SPECIALIZED FEDERAL COURTS MANY FEDERAL AGENCIES STATE SUPREME COURT (Cases Involving Federal Law)

Federal Court of Appeals O Have appellate jurisdiction over district courts, certain federal courts, and many federal agencies. O Power is exercised when a case of a lower court is appealed by one or more parties. O No appellate court, not even the USSC can change the factual determination of a jury.

Court of Appeals O In cases appealed from federal administrative agencies, the Court of Appeals’ review power is even more limited. O Specialized areas of agencies have depth knowledge necessary to justly review cases and are given special status when brought before a Court of Appeals.

O Appellate court O Appellate court can only review decisions of an agency on two grounds: O Did the agency exceed the powers granted it by the statue passed by congress creating the agency? O Did the agency act in an arbitrary (random) and/or capricious (impulsive) fashion in deciding the case? O If the answer to any one of these is yes, then the appellate court may render its decision in the matter or order the agency to reconsider its decision in accordance with the directions from the court.

13 O There are 13 federal court of appeals O 12 O 12 of these are circuit courts (each is responsible for an assigned geographical area) O The thirteenth is dedicated to the “federal circuit” and has exclusive jurisdiction over a variety of courts and boards with specialized jurisdictions such as claims against the federal government, trademarks and patents, veterans for compensation,, etc.)

United States Supreme Court O Has both original and appellate jurisdiction. O Original jurisdiction, according to the constitution, is over “cases affecting ambassadors, other public ministers and consuls, etc. writ of certiorari O If the Supreme Court believes that a case contains a constitutional issue sufficiently important to be decided by it, the court will issue a writ of certiorari to the last court that heard the case. writ O The “writ” or order compels the lower court to turn over the record of the case to the Supreme Court for review.

State Court Systems Legislative (Makes the laws) Executive (enforces the laws) Judicial (court systems)

Typical state’s judicial branch organized into 3 tiers Judicial Branch State Supreme Court (Ultimate level of appeal; both trial and appellate courts are controlled and supervised by the supreme court. ) Appellate Court (do not hear new evidence; only transcripts, briefs, etc.) Trial courts (general or specialized jurisdiction)

State Trial Courts circuit courts O Most states, these courts have general original jurisdiction over both criminal and civil matters (aka circuit courts). superior courts, district courts, or courts of common pleas O Other states refer to them as superior courts, district courts, or courts of common pleas. O Regardless of the name, these trial courts are courts of record in the state system.

O Court of record O Court of record – keeps an exact account of what goes on at trial. O Accuracy of this record is vital, as any appeal that is filed depends on it O Accuracy of this record is vital, as any appeal that is filed depends on it. small claims courts (which are not courts of record O State trial courts also review the decisions of courts of more specialized jurisdiction, such as the small claims courts (which are not courts of record).

Associate Circuit Courts lower courts associate circuit courts or country courts O Referred to as lower courts associate circuit courts or country courts. O Courts hear minor criminal cases, state traffic offense, and lawsuits (relatively small amounts ) usually no more than $25,000. O Generally these courts are not courts of record. However, they take significant burden off higher courts and an appeals from their decisions can be taken to a state trial court for a completely new trial.

City or Municipal Courts municipal courts O Cities typically have courts that administer their ordinances called municipal courts. O Usually divided into traffic and non-traffic divisions. O As city ordinances overlap wit duplicate state laws, less serious violations occurring within the city limits are brought before these courts. ordinances are not considered criminal laws O Although penalties for violating ordinances can be severe, ordinances are not considered criminal laws; only state and federal governments can make an act criminal.

Small Claims Courts O Consists of minor individual suits O Consists of minor individual suits; these courts handle disputes for small amounts, generally $2,500 or less. O Attorneys typically are not required in small claims courts O Attorneys typically are not required in small claims courts. O The judge hears the case without a jury or formal rules of evidence. O Decisions of small claims courts can be appealed to a state trial court.

Juvenile Courts 13 and under 18 juveniles O Consists of members of society –those over 13 and under 18 years of age in most states are referred to as juveniles. O There are minimum ages at which each state tries an individual as an adult (ages range from and up; see map on pg. 58) O Society typically believes that juveniles should not be held as responsible as adults for their criminal acts. juvenile courts O To carry out this policy, special juvenile courts have been set up.

juveniles are entitled to their full constitutional rights O In these courts, juveniles are entitled to their full constitutional rights, including the right to be presented by an attorney. public knowledge. O These courts ensure that most of the criminal cases involving juveniles do not become public knowledge. O Courtroom is closed while and informal hearing on the charges is conducted. court has wide powers in determining what should be done. O If juvenile is found guilty of charges brought, the court has wide powers in determining what should be done. O Possibly open to the court included release into supervisions of parents, guardians, or governmental officials; placement in foster homes; and detention in correctional facilities.

emphasis for juveniles is generally regarding rehabilitation, not punishment, so detention in correctional facilities is usually that option. O However, emphasis for juveniles is generally regarding rehabilitation, not punishment, so detention in correctional facilities is usually that option. O If rehabilitation fails, the young offender can be tried and punished as an adult ( in serious cases such as murder or rape). O Appeals from actions of juvenile courts are directed to circuit courts.

Probate Courts administer wills and estates O Courts that administer wills and estates when individuals dies, and their property and other interest is to be divided according to their wishes and appropriate law.