Business Law, 8e: Chapter 4

Chapter 4
The American Legal System and Court Jurisdiction:

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1. Lago has never been to Illinois, has never done business in Illinois, and has no contacts with Illinois. Paula sued Lago over a contract dispute in an Illinois state court. If Lago objects, the Illinois state court will be able to decide the case because it does not have jurisdiction.: a. True
b. False

2. Venue refers to the power of a court to hear certain kinds of legal questions.: a. True
b. False

3. Courts always have in personam jurisdiction over plaintiffs because a plaintiff implicitly consents to the court's jurisdiction by filing the lawsuit.: a. True
b. False

4. In rem jurisdiction involves jurisdiction over a particular person.: a. True
b. False

5. "Service of process" includes the use of both actual notice and constructive notice.: a. True
b. False

6. Tzu Ling, a private employer, pays her employees less than federal minimum wage laws allow. Jamal, who works for a different private employer (and receives a salary well above the minimum wage), files a lawsuit in federal court against Tzu Ling for violating the minimum wage laws. The lawsuit will not be dismissed.: a. True
b. False

7. If a court has the proper in personam jurisdiction to hear a case, then it does not need to have subject matter jurisdiction.: a. True
b. False

8. Certiorari means the proper geographical area or district where a suit can be brought.: a. True
b. False

9. A Minnesota State Court is deciding a contract dispute between a resident of Minnesota and a resident of Wisconsin. The contract specified that Wisconsin law would govern the validity and performance of the contract. The Minnesota Court will follow Minnesota's procedural law.: a. True
b. False

10. Ko, a resident of Oklahoma, was seriously injured by a product manufactured by Ultran, Inc. Ko's medical expenses alone have exceeded $100,000. The product which caused the injuries contained component parts manufactured by Quent Company. Ultra is incorporated and has its headquarters in Delaware and Quent Company is an Oklahoma business with its headquarters in Tulsa Oklahoma. Ko has decided to bring one lawsuit against both Ultran and Quent for $500,000. Ko's lawsuit can be heard in federal court based on diversity of citizenship.: a. True
b. False

11. Statutes that allow courts to exercise personal jurisdiction over defendants who are not domiciliaries of the state based upon minimum contacts are called:: a. jurisdictional statutes.
b. in personam statutes.
c. extra territorial statutes.
d. long-arm statutes.

12. In the case of Marbury v. Madison, the U.S. created the doctrine of judicial review. The doctrine of judicial review established that:: a. the courts have the power to declare actions of the legislative and executive branches of government unconstitutional.
b. the Constitution forbids any court from granting a mandamus.
c. the courts will not decide questions that encroach on executive or legislative powers concerning government, the state, or politics.
d. the U.S. Supreme Court has the right to be fully informed.

13. The issue of standing to sue in federal courts was addressed in:: a. Denfunis v. Odergard.
b. Johnson Controls v. United Association of Journeymen.
c. Newdow v. United States Congress.
d. Murphy Brothers Inc. v. Michetti Pipe Stringing, Inc.

14. Choice of laws is the legal doctrine used to decide:: a. a conflict between criminal and civil jurisdiction.
b. a conflict between state and federal jurisdiction.
c. the law that applies when there is a conflict between two or more jurisdictions.
d. whether there is concurrent jurisdiction.

15. Vop, Inc. is a regional grocery store with stores located throughout the upper Midwest. While on vacation in Minnesota, Ashley slipped and fell in a Vop store. Ashley is a resident of Florida. Ashley would have liked to sue Vop in Florida, but Florida did not have in personam jurisdiction. Consequently, Ashley sued Vop in Minnesota state court. Ashley won, however, Vop failed to pay the judgment. Vop owns property in Florida. May Ashley sue in Florida state court for the attachment of Vop's Florida property to help execute the judgment?: a. Yes, because the court has quasi in rem jurisdiction over Vop's Florida property.
b. No, because the Florida court does not have in personam jurisdiction over Vop.
c. No, because Florida property may not be used to execute an Minnesota judgment.
d. Yes, because the court now has in personam jurisdiction over Vop.