Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Slides developed by Les Wiletzky PowerPoint Slides to Accompany ESSENTIALS OF BUSINESS AND ONLINE COMMERCE LAW 1 st Edition by Henry R. Cheeseman Chapter 3 Traditional, Alternative, and E-Commerce Dispute Resolution Chapter 3 Traditional, Alternative, and E-Commerce Dispute Resolution

Copyright © 2006 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

Copyright © 2006 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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Limited- Jurisdiction Trial Courts 2. General- Jurisdiction Trial Courts 3. Intermediate Appellate Courts 4. Supreme Court The State Court Systems (1 of 4)

Copyright © 2006 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 Hears matters of a specialized or limited nature

Copyright © 2006 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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The State Court Systems (4 of 4)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved A Typical State Court System State Trial Courts of General Jurisdiction State Supreme Court State Appeals Courts Civil Division Criminal Division Probate Division Domestic Relations Division Juvenile Division Municipal Courts Justice of the Peace Courts Appeal to U.S. Supreme Court Small Claims Courts

Copyright © 2006 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

Copyright © 2006 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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Special Federal Courts 2. U.S. District Courts 3. U.S. Courts of Appeals 4. U.S. Supreme Court The Federal Court System (1 of 9)

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (2 of 9)  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 Court

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (3 of 9)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (4 of 9)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (5 of 9)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (6 of 9)  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.

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (7 of 9)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (8 of 9)  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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Federal Court System (9 of 9) U.S. Supreme Court U.S. Court of Appeals (11 Territorial Circuits & D.C. Circuit) U.S. Court of Appeals for the Federal Circuit Many Federal Adminis- trative Agencies U.S. District Courts (96 Districts U.S. Tax Court U.S. Bankruptcy Courts U.S. Claims Court U.S. Court of International Trade U.S. Patent and Trademark Office

Copyright © 2006 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

Copyright © 2006 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

Copyright © 2006 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

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Jurisdiction and Venue of Courts (1 of 2)  Not every court has the authority to hear all types of cases standing to sue  To bring a lawsuit in a court the plaintiff must have standing to sue jurisdiction  The court must have jurisdiction to hear the case venue  The case must be brought in the proper venue

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Jurisdiction and Venue of Courts (2 of 2) 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.Forum selection clause 8.Venue 5.Quasi in rem jurisdiction 6.Long-arm statutes 7.Forum selection clause 8.Venue

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Pleadings 2. Discovery 3. Dismissals and Pretrial Discovery 4. Settlement Conference The Pretrial Litigation Process

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Statute of Limitations  Establishes the period during which a plaintiff must bring a lawsuit against a defendant  If a lawsuit is not filed within this time period, the plaintiff loses his or her right to sue  A statute of limitations begins to “run” at the time the plaintiff first has the right to sue the defendant

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Trial  Pursuant to the Seventh Amendment to the U.S. Constitution, a party to an action at law is guaranteed the right to a jury trial in cases in federal court  Most state constitutions contain a similar guarantee for state court actions  If either party requests a jury, the trial will be by jury  If both parties waive their right to a jury, the trial will be without a jury

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Phases of a Trial 1.Jury Selection 2.Opening Statements 3.The Plaintiff’s Case 4.The Defendant’s Case 5.Rebuttal and Rejoinder 6.Closing Arguments 7.Jury Instructions 8.Jury Deliberation 9.Entry of Judgment 1.Jury Selection 2.Opening Statements 3.The Plaintiff’s Case 4.The Defendant’s Case 5.Rebuttal and Rejoinder 6.Closing Arguments 7.Jury Instructions 8.Jury Deliberation 9.Entry of Judgment

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved The Appeal civil case  In a civil case, either party can appeal the trial court’s decision, once a final judgment is entered criminal case  In a criminal case, only the defendant can appeal  Notice of appeal  Notice of appeal must be filed within a prescribed time after judgment is entered to the appropriate appellate court

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Alternative Dispute Resolution (ADR)  Nonjudicial means  Nonjudicial means of resolving legal disputes  Developed in response to the expense and difficulty of bringing a lawsuit  ADR  ADR usually saves time and money of costly litigation

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Minitrial Fact-Finding Judicial Referee Mediation Conciliation Arbitration Types of ADR

Copyright © 2006 by Pearson Prentice-Hall. All rights reserved Key ADR Legislation  Federal Arbitration Act Arbitration agreements involving commerce are valid, irrevocable, and enforceable contracts  Uniform Arbitration Act Adopted by half of the states Promotes the arbitration of disputes at the state level