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Any court can exercise jurisdiction over any person.

A) True
B) False

Correct Answer

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Most states encourage or require parties to undertake a trial before alternative dispute resolution.

A) True
B) False

Correct Answer

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Doing business within a jurisdiction is not enough for most courts to compel a defendant to appear.

A) True
B) False

Correct Answer

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Because the Internet is international in scope, it raises international jurisdictional issues.

A) True
B) False

Correct Answer

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A mandatory arbitration clause in an employment contract may not be enforced if


A) the arbitration rules and procedures are unfair to one of the parties.
B) the parties did not specify limits to the disputes that may be submitted.
C) the relevant arbitration statute does not exclude the claim in dispute.
D) a party who agreed to the clause later opposes arbitration.

E) A) and B)
F) A) and C)

Correct Answer

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The effect of the minimum-contacts standard is that a business firm has to comply with the laws of any jurisdiction in which it targets customers.

A) True
B) False

Correct Answer

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Lazlo, a citizen of Minnesota, wants to file a suit against Nadji, a citizen of Ohio. The diversity of citizenship may be a basis for


A) no court to exercise jurisdiction.
B) a federal court to exercise jurisdiction.
C) any court to exercise jurisdiction.
D) the United States Supreme Court to refuse jurisdiction.

E) None of the above
F) C) and D)

Correct Answer

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When concurrent jurisdiction exists, the decision of whether to litigate in a federal or state court can be affected by the availability of different remedies.

A) True
B) False

Correct Answer

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Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.

A) True
B) False

Correct Answer

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Because litigating a complaint can be costly, and there is a backlog of cases in many courts, a businessperson is likely to attempt to resolve a dispute


A) through the court system.
B) with a method of alternative dispute resolution.
C) by anticipating that the dispute will resolve itself.
D) by filing a writ of certiorari in a different court.

E) C) and D)
F) B) and D)

Correct Answer

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In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online.

A) True
B) False

Correct Answer

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Hobbes, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jules, a resident of Kentucky. Jules files a suit against Hobbes in Indiana. Regarding this suit, Indiana has


A) federal jurisdiction.
B) in personam jurisdiction.
C) in rem jurisdiction.
D) no jurisdiction.

E) C) and D)
F) A) and C)

Correct Answer

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Generally, because the parties to arbitration are free to agree to the means of the method, a court will not hear a complaint from either party about the results.

A) True
B) False

Correct Answer

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Because the courts have defined interstate commerce broadly, arbitration agreements only slightly connected to interstate commerce may be enforced.

A) True
B) False

Correct Answer

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Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have


A) venue.
B) exclusive jurisdiction.
C) standing to sue.
D) minimum contacts.

E) B) and C)
F) A) and D)

Correct Answer

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There are no international conventions or treaties to assist in the enforcement of arbitration clauses because their enforcement is a national domain.

A) True
B) False

Correct Answer

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Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is


A) arbitration.
B) mediation.
C) negotiation.
D) early neutral case evaluation.

E) A) and B)
F) B) and C)

Correct Answer

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Ginny and Haruto present their case to an Idaho state court for resolution. The court defers to a different Idaho court's findings of fact in the case, and focuses on the application and interpretation of the law to the dispute. The court currently deciding Ginny and Haruto's dispute is


A) an appellate court.
B) a trial court.
C) a U.S. magistrate's court.
D) a special inferior court.

E) None of the above
F) A) and B)

Correct Answer

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Liz and Moss disagree over the amount due under their contract. To avoid involving a third party in the resolution of their dispute, Liz and Moss could resolve their dispute through


A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

E) A) and D)
F) None of the above

Correct Answer

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Jurisdiction refers to the right of a citizen to bring a case before a court.

A) True
B) False

Correct Answer

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