LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 1 The Court System Dispute Resolution and the Courts Federal Court System State Court Systems CHAPTER 4 Lessons

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 2 Dispute Resolution and the Courts Explain how disputes can be settled without resort to the courts Name the different levels of courts and describe their powers LESSON 4-1 GOALS

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 3 CAN DISPUTES BE RESOLVED PRIVATELY?  In today’s society, many people decide to take their disputes to court rather than resolve them privately.  Litigation – the process of resolving disputes in court.  By resolving disputes privately, the court system can be left out altogether.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 4 CAN DISPUTES BE RESOLVED PRIVATELY? (cont.)  In most private dispute meetings, the victim and wrongdoer invite an independent party to act as a judge to help make a decision.  Independent parties are called: o Mediators o Arbitrators

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 5 CAN DISPUTES BE RESOLVED PRIVATELY? (cont.)  Mediation o A mediator tries to develop a solution acceptable to both sides of the dispute. o The actions of a mediator are merely suggestions and advisory.  The actions are not binding.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 6 CAN DISPUTES BE RESOLVED PRIVATELY? (cont.)  Arbitration o An arbitrator usually holds an informal hearing to determine what happened. o The arbitrator’s decision is binding on both parties. o The decision can be enforced by court order if necessary. o The parties involved may avoid the costs, delays, and difficulties of a court trial by using arbitration.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 7 Arbitration vs. Mediation

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 8 What’s Your Verdict? (p. 63) 7-Eleven sells franchises for stores bearing its name. The franchise agreement specifies that disputes btween 7-Eleven and those who buy a franchise should be settled by arbitration rather than by a trial in court.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 9 What’s Your Verdict? (p. 63) Questions 1.Can 7-Eleven compel its franchisees to use arbitration? - Yes, if there is a provision in their original agreement or contract 2.Would you use arbitration to settle a personal dispute? Why or why not? - Probably so, saves on fees and is quicker in most cases.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 10 DIFFERENT LEVELS OF COURTS  What is a “court”? o A governmental forum (meeting) that administers justice under the law o Decides civil disputes as well as criminal cases. o May award damages in civil cases and punishments in criminal cases.  The two level of courts are: o Trial courts o Appellate courts

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 11 TRIAL COURTS  A trial court is the first court to hear a dispute. o Has original jurisdiction over a case. o Original jurisdiction - power to hear the case in full for the first time  Consists of judges, lawyers, clerks, sheriffs/marshalls, bailiffs, and jury members. o Jury – sworn citizens that decide issues of fact in court cases

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 12 APPELLATE COURTS  An appellate court reviews decisions of lower courts when a party claims an error was made during the previous proceeding.  Do not hear witnesses and generally do not accept new evidence.  Appellate courts are concerned with errors of law rather than questions of fact

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 13 APPELLATE COURTS (cont.)  They examine the case transcript and read appellate briefs submitted by the opposing attorneys. o Transcript – a verbatim record of what went on at trial. o Appellate brief – written arguments on the issues of law.  They also listen to attorneys’ oral arguments.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 14 POSSIBLE APPELLATE COURT DECISIONS  Affirm (uphold) the decision of the lower court  Reverse (overturn) the decision of the lower court  Amend (change) the decision of the lower court  Remand the case—send it back to the trial court for corrective action or possibly a new trial.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 15 **Quick Recap**  Which dispute resolution is legally binding? Arbitration  Which court hear the initial case? Trial courts

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 16 Federal Court System Identify the source of power of the federal courts Name the various levels of federal courts and describe their jurisdictions LESSON 4-2 GOALS

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 17 ORIGINS OF OUR FEDERAL COURT SYSTEM  The Formation of the Federal Court System o Federal courts received their power from the Constitution.  Article III  The Constitution granted Congress the power to establish courts inferior (lower) to the U.S. Supreme Court.  Federal Judiciary Act – ordained and established the US Supreme Court (USSC) and circuit courts of appeals.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 18 What’s Your Verdict (p.65) Jim and Marla were discussing how U.S. Bankruptcy Courts were empowered to decide cases. Jim said that federal courts received their power from the U.S. Constitution. Marla thought Congress had created and empowered the bankruptcy courts.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 19 What’s Your Verdict (p.65) Questions 1.Who is correct? - They both are because the federal courts received their power from the constitution, but the constitution granted Congress the power to establish lower courts as needed.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 20 JURISDICTION OF THE FEDERAL COURTS  There are currently three levels of federal courts with general jurisdiction: o Federal District Courts o Federal Courts of Appeals o United States Supreme Court  General Jurisdiction - court that can hear almost any kind of case  Specific Jurisdiction - court that hears only one specific type of case

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 21 Federal District Courts  Is the lowest level of federal court with general jurisdiction.  Is also known as the trial court of the federal system.  Has the power to determine the facts and to make initial determinations of the law to use in deciding the case.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 22 Federal District Courts (cont.)  FDC have jurisdiction over: o Federal questions regarding the Constitution, US laws, and US treaties o Lawsuits among citizens of different states and nations.  Diversity of citizenship – must consist of more than $75,000 in disputed money

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 23 What’s Your Verdict (p.65) Susan Bean, a citizen of Illinios, sued Wallis Turk, a citizen of the state of Colorado, for the breach of a construction contract on Bean’s new Chicago residence. More than $600,000 was at stake. Bean filed the suit in Illinios state court. Turk fought to remove the case to the federal courts.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 24 What’s Your Verdict (p.65) Question 1.Should the case be heard in federal or state court? - The case should be held in federal court because the lawsuit is worth more than $75,000 between citizens of different states.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 25 Federal Courts of Appeals  Have appellate jurisdiction over: o the district courts o certain specialized federal courts o many federal administrative agencies  Power is exercised when the result of a case in a lower court is appealed by a party in the case.  Do not accept any new evidence or witnesses.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 26 Federal Courts of Appeals (cont.)  They review the trial transcripts and the written oral arguments of the attorneys to reach a decision.  Cannot change the factual determinations of a jury.  There are 13 federal courts of appeals: o 12 are circuit courts – assigned a geographic area o 1 dedicated court – handles patent cases

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 27 United States Supreme Court (USSC)  Has original and appellate jurisdiction.  Original jurisdiction includes cases involving: o Ambassadors o Public ministers and consuls  The most important function is to exercise its appellate jurisdiction over US Courts of Appeals and state supreme courts. o Writ of certiorari - order to a lower court to produce the record of a case for the Supreme court to review

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 28 FEDERAL COURT SYSTEM United States Supreme Court State Supreme Courts Specialized Federal Courts Many Federal Agencies United States District Courts 13 United States Courts of Appeals (12 Circuit Courts) (1 Court of Appeals for the Federal Circuit) 13 United States Courts of Appeals (12 Circuit Courts) (1 Court of Appeals for the Federal Circuit)

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 29 State Court Systems Compare the structure of a typical state court with the structure of the federal courts Identify state courts of specialized jurisdiction Discuss the jurisdiction of the various typical state courts LESSON 4-3 GOALS

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 30 STRUCTURE OF STATE COURT SYSTEMS  Most state legal systems resemble the federal system. o State Legislature = makes laws o State Executive branch = enforces the laws in court o State Judiciary branch = hears cases and interprets the law

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 31 STRUCTURE OF STATE COURT SYSTEMS (cont.)  The state court system is broken down into three main tiers: o Bottom – trial courts (original/general) o Middle – appellate courts o Top – state supreme court (controls and supervises trial and appellate courts; the ultimate level of appeals in the state).

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 32 What’s Your Verdict (p.68) When Simon withheld the security deposit after Annie moved out of her apartment, Annie sued him in small claims court to get it refunded. When she lost, she told her friend that she would appeal it directly to the US Supreme Court.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 33 What’s Your Verdict (p.68) Questions 1.Can she do so? - No, she can’t go directly to the USSC because it was a small claims case. There is a chain or process to appeal cases. 2. Do you believe Annie should be able to appeal to the USSC? Why or why not? - No, because the importance of the case is very small and the USSC does not need to waste their time dealing with small, unimportant cases.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 34 State Trial Courts  Trial courts are typically considered circuit courts in most states. o Some states refer to them as superior, district or common pleas courts. o These are known as “courts of record” in the state system.  Court of record – keeps an accurate, detailed report of what went on trial  Review the decisions of, or handles appeals from courts of more specialized jurisdiction. o Family court, Probate court, Criminal court, etc.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 35 State Trial Courts (cont.)  A state trial court makes determinations of the facts in the case by using a jury. o If a jury is not requested, the a judge will determine the facts.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 36 State Courts of Appeals  Oversee cases that have been appealed in a court of record (trial court).  No new evidence or witnesses are introduced at this level.  Judges at this level check to be sure the correct law was used to resolve the case.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 37 State Courts of Appeals (cont.)  If the State Court of Appeals (SCA) judges conclude that the trial court used the incorrect law, they may enter a judgement correcting the ruling from the previous trial.  If the SCA judges conclude that the trial court used the correct law, the trial court’s judgement would stand and the case would be dismissed.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 38 State Supreme Courts  We are all entitled to a trial and to one appeal, if filed in a timely manner and in the proper form.  Only cases that involve the most complex legal issues are taken to the justices of the State Supreme Court (SSC). o Justice – the title given to judges who sit on a supreme (federal/state) court.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 39 State Supreme Courts (cont.)  SSC issue the final decision on matters of law appealed to them unless the US Constitution is involved.  If a matter involving the US Constitution or another federal issue, a further appeal can go to the USSC.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 40 State Courts with Specialized Jurisdiction  There are several courts below the state trial or circuit courts that handle minor, specific cases. Those are: o Associate Circuit Courts (County Courts) o City or Municipal Courts o Small Claims o Juvenile o Probate Courts

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 41 Associate Circuit Courts  Associate Circuit Courts hear cases that pertain to the following: o Minor criminal cases o State traffic offenses o Lawsuits (usually no more than $25,000)  Are not usually courts of record  Sometimes allievate the caseload of district or circuit courts.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 42 City or Municipal Courts  These courts administer city or municipal ordinances.  Municipal Courts are normally divided into traffic and criminal divisions.  Although city ordinances can overlap with state laws, less serious offenses are brought before a city or municipal court for their first trial.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 43 Small Claims Courts  Minor individual lawsuits are heard in Small Claims Courts.  Usually handle disputes that are $2,500 and lower.  A judge hears the case without attorneys and a jury.  Decisions can be appealed to the circuit court.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 44 Juvenile Courts  Juveniles - individuals over 13 and under 18 years of age who have special status under the criminal law  In our society, some believe juveniles should not be held responsible for their actions as adults should.  The emphasis for juveniles is on rehabilitation, not punishment.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 45 Juvenile Courts (cont.)  Juvenile Courts ensure that most of the criminal cases involving juveniles do not become public knowledge.  If rehabilitation fails or is shown to be impossible, the offender can be tried as an adult. o Happens mostly with very serious offenses such as murder or kidnapping.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 46 What’s Your Verdict (p.69) Reid, age 15, was detained by the police for shoplifting and was referred to juvenile court.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 47 What’s Your Verdict (p.68) Questions 1.Will Reid be treated differently in juvenile court than in an adult criminal court? - Yes, due to his age, he would be tried in a juvenile court. 2. Should all juveniles be tried as juveniles? Why or why not? - Not always, their offense should be considered, and it depends on the state whether or not they should be tried as a juvenile or adult.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 48 Probate Courts  Probate Courts administer wills and estates.  Cases in which someone dies and their personal possessions must be divided go to these courts.  This procedure is formal and often complex.

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 49 A TYPICAL STATE COURT SYSTEM Supreme Court Family Court Probate Court Criminal Court Juvenile Court Municipal Court Justice’s Court (The Court of a Justice of the Peace) Justice’s Court (The Court of a Justice of the Peace) Small Claims Court Trial Court (Of Original General Jurisdiction) Trial Court (Of Original General Jurisdiction) Intermediate Appeals Court (In Populous States) Intermediate Appeals Court (In Populous States)

LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 4Slide 50 **Quick Recap**  This state court hears minor criminal cases and lawsuits of usually $25,000 or less? Associate Circuit Courts  What is a court of record? An accurate, detailed report about what went on during a trial