Post on 29-May-2018
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Solutions Manual Legal Environment of Business: Online
Commerce, Ethics, and Global Issues 8th Edition Henry R.
Cheeseman
Completed download link:
https://testbankarea.com/download/legal-environment-business-online-
commerce-ethics-global-issues-8th-edition-solutions-manual-henry-r-
cheeseman/
Test Bank for Legal Environment of Business: Online Commerce,
Ethics, and Global Issues 8th Edition by Henry R. Cheeseman
Completed download link:
https://testbankarea.com/download/legal-environment-business-online-
commerce-ethics-global-issues-8th-edition-test-bank-henry-r-cheeseman/
Chapter 3
Courts, Jurisdiction, and Administrative Law
See you in Court!
I. Teacher to Teacher Dialogues
Twenty-first century technological advances have provided our students with all kinds of instant
access to information. These devices have provided students with a variety of preconceptions.
Among these, is the average undergraduate’s notion of how trials are conducted and the role of
attorneys in that process. Invariably these perceptions center on popular television series such as
Law and Order and Court TV. This is not all bad. Current media focus on numerous law-related
issues has generated a whole new wave of public interest in the workings of our legal system. The
downside is that the media has created many myths on the folklore of law and lawyers. In the world
of pop culture, no one knows until the end who really did it until a surprise witness shows up to
identify the bad guy. In more modern versions, the attorney first has a business relationship with the
client and then proceeds to get him or her acquitted. Regardless of the outcome, the process is
always full of glamour and intrigue.
The problem is that a trial rarely resembles the goings on found in the entertainment media.
Trials are long, tedious, emotionally and financially draining processes for all parties concerned. In
many ways, a trial represents a failure by the parties to reach some sort of satisfactory solution of
the issue beforehand. Rarely do the parties actually want to go through a labyrinth of pleadings,
motions, and the like, feeling all the while totally dependent on the sometimes questionable
competence of their attorneys. Unlike the make-believe world of entertainment, the job of an
attorney is to keep his or her client out of court. (This often needs some reinforcement with the
student.) The attorney’s professional advice should anticipate and resolve potential legal problems
before, rather than after the fact if at all possible.
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It is against this backdrop that we should try to present a more realistic picture of how our
system works. We can basically start by discussing how few controversies actually get to the trial
stage and how even fewer of those are actually reported in the National Reporter System.
Additionally, a fair amount of time should be spent reviewing the growing trend towards
alternative dispute resolution (ADR). Personal experience examples might be helpful in illustrating
the growing trends towards ADR. To complete the cycle we can then proceed to itemize the key
steps used in a court trial.
Anyone who has dealt with a large governmental bureaucracy can readily appreciate the
frustrations of trying to get through the maze with sanity intact. The government’s burgeoning
growth of administrative agencies at every level is indeed cause for concern for its constituents.
According to statistics published by the U.S. Congress, the federal government alone has
approximately 2.8 million civilian employees working as of 2012. In spite of constant calls to
reduce the size of government’s role in the average person’s affairs, that role has grown
tremendously as reflected in these statistics. The media headlines may be focused on the goings on
in the capitol, but the real functions of government are carried out “in the trenches” by this “fourth
branch of government” every day. This chapter seeks to outline the basic ground rules about how
the agencies are created, how they are authorized to act, and what controls have been put in place so
as to protect the rights of both citizens and the government.
The basic function undertaken by these administrative agencies is to carry out the ministerial
functions necessary to the operation of the government. These functions are first authorized by what
are called organic statutes, which create the agency, and enabling statutes, which delegate certain
powers to the agency to act for the executive, legislative, or judicial branches of government. It is
interesting to note at the outset that the “clean functional lines” of the executive, legislative, and
judicial branches can and do often become quickly blurred when examining the breadth and scope
of administrative agency activities.
Once the existence of the agency is settled upon and its scope of authority is established, you
must then look to see if it is acting within the scope vis-à-vis the particular issue at hand. Remember
the basic assumption here is that the executive branch, legislative branch, or judicial branch has
chosen to designate and delegate a certain portion of its authority to act. This delegation is based on
the presumption that the agency can be expected to have certain levels of expertise, scales of
economy, and attention to detail which could not be readily expected of the policy makers. The next
step is to see if the power in question was in fact truly delegated, and if so, is it being properly
exercised by the agency?
The mechanisms for control of agency powers are relatively sparse given the scope of agency
activity. The key provisions for control of agency powers are found in the executive branch chain of
command and in the overview powers vested in the judiciary. In addition, there have been a number
of specific information access type statutes such as the Freedom of Information Act, Government in
the Sunshine Act, and the Administrative Procedure Act to help persons dealing with these agencies
to get through the labyrinth.
II. Chapter Objectives 1. Describe state court systems.
2. Describe the federal court system.
3. List and describe the types of decisions that are issued by the U.S. Supreme Court.
4. Compare the jurisdiction of state courts with that of federal courts.
5. Describe administrative agencies and the main features of administrative law.
III. Key Question Checklist If the dispute or controversy needs to be resolved in a court of law, which court has
jurisdiction?
Once jurisdiction is established, was the proper sequence of pretrial steps taken?
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Was the trial sequence properly followed?
After the trial is completed, are any appeals from the decision applicable?
Define administrative law.
List and explain the functions of administrative agencies.
Describe the provisions of the Administrative Procedure Act.
IV. Chapter Outline The chapter discusses the federal court system, state court systems, jurisdiction of courts, and
administrative agencies.
Introduction to Courts, Jurisdiction, and Administrative Law
There are two major court systems in the U.S., the federal court system and the court systems of the
50 states and the District of Columbia. Each of these systems has jurisdiction to hear different types
of lawsuits.
State Court Systems Limited-Jurisdiction Trial Courts
General-Jurisdiction Trial Courts
Intermediate Appellate Courts
Highest State Court
Limited-Jurisdiction Trial Courts – Hear matters of a specialized nature
Traffic courts
Juvenile courts
Justice-of-the-peace courts
Probate courts
Family law courts
Courts that hear misdemeanor criminal law cases
General-Jurisdiction Trial Courts – Hear 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 Courts – Intermediate courts that hear appeals from trial courts
Review the trial court record to determine if there have been any errors at trial that would
require reversal or modification of the decision
Highest State Court – Hears appeals from intermediate state courts
Business Environment: Delaware Courts Specialize in Business Disputes
Delaware has created a special Chancery Court to decide business litigation, with a reputation for
handling corporate matters. Delaware’s laws also tend to favor corporate management, so together
with the Chancery Court, the state has created an environment that encourages incorporation in that
state. Other states are beginning to follow suit and create their own variation of Delaware’s
Chancery Court.
Federal Court System
Special federal courts
U.S. district courts
U.S. courts of appeals
U.S. Supreme Court
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Special Federal Courts – Federal courts that hear matters of specialized or limited jurisdiction
They include:
U.S. Tax Court
U.S. Court of Federal Claims
U.S. Court of International Trade
U.S. Bankruptcy Court
U.S. Court of Appeals for the Armed Forces
U.S. Court of Appeals for Veterans Claims
Contemporary Environment: Foreign Intelligence Surveillance Court
In 1978, Congress created the Foreign Intelligence Surveillance (FISA) Court, which is located in
Washington DC. The FISA Court hears requests by federal law enforcement agencies, such as the
Federal Bureau of Investigation (FBI) and National Security Agency (NSA), for warrants, called
FISA warrants, to conduct physical searches and electronic surveillance of Americans or foreigners
in the United States who are deemed a threat to national security.
U.S. District Courts – The federal court system’s trial courts of general jurisdiction
Most federal cases originate in federal district court
They are empowered to:
Impanel juries
Receive evidence
Hear testimony
Decide cases
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
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
Supreme Court of the United States
The Supreme Court is composed of nine justices who are nominated by the president and confirmed
by the Senate. The president appoints one as the chief justice who is responsible for the
administration of the Court, while the other eight are considered associate justices.
Contemporary Environment: Process of Choosing a U.S. Supreme Court Justice
The president appoints Supreme Court justices, with the advice and consent of the Senate (majority
vote). This allows a form of balance of power between the executive and legislative branches of the
government.
Jurisdiction of the U.S. Supreme Court – The Supreme Court hears appeals from the federal
district courts and from the highest state courts. Legal briefs are filed, oral arguments are made,
lower court records are reviewed, but neither new evidence nor testimony is heard. The Supreme
Court decision is final.
Decisions of the U.S. Supreme Court – Congress has established the rules for the mandatory
appellate review by the Supreme Court, which may also elect to hear cases at its discretion.
Petitioners file a petition for certiorari asking for the Supreme Court to review their case. If the
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court decides to consider the matter, it issues a writ of certiorari. The court hears about 100 cases
each year.
The U.S. Supreme Court can issue several types of decisions:
Unanimous decision – In this case, all of the justices voting agree as to both the outcome
and the reasoning. Such a decision becomes precedent.
Majority decision – A decision by the Supreme Court is considered a majority decision if a
majority of the justices agree on the outcome and reasoning. This decision becomes
precedent.
Plurality decision – A plurality decision is when the majority of the justices agree on the
outcome, but not the reasoning. This settles the case, but does not serve as precedent.
Tie decision – In this case the winner in the lower court prevails. This does not serve as
precedent.
Concurring opinion – When a justice agrees with the outcome of the majority, but not the reasoning,
the justice will issue a concurring opinion explaining his or her stand.
Dissenting opinion – Any justice who does not agree with the decision may state his or her opinion.
Contemporary Environment: “I’ll Take You to the U.S. Supreme Court!”
This discusses the process necessary to win a review by the U.S. Supreme Court. Having a case
heard by the nation’s highest court is rare. Each year, approximately 10,000 petitioners ask the
Supreme Court to hear their cases, while fewer than 100 of these cases are accepted for full review
in a particular term.
Jurisdiction of Federal Courts
Federal Question – Federal courts have limited jurisdiction to hear cases involving federal
questions with no dollar amount limit.
Diversity of Citizenship – The federal courts have jurisdiction to hear cases involving diversity of
citizenship. There must be diversity of state citizenship or the cases must be between a citizen and a
subject of a foreign country. The amount in controversy must be over $75,000.
Jurisdiction of State Courts – State courts hear cases that the federal courts do not have the
jurisdiction to hear. Federal courts may have concurrent jurisdiction with state courts to hear cases
involving diversity of citizenship.
Standing to Sue, Jurisdiction, and Venue
Standing to Sue – The plaintiff must have a stake in the outcome of the lawsuit.
In Personam Jurisdiction – In personam jurisdiction over the person is achieved by the plaintiff
filing a lawsuit with a court and by serving a summons on the defendant. If personal service is
unavailable, notice of the case by mail or publication in newspapers is allowed. Defendants
disputing the jurisdiction of a court may make a special appearance to argue their case, and cannot
be served while making this appearance.
Federal Court Case
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Case 3.1 Service of Process: Chanel, Inc. v. Zhixian
Facts: Chanel, Inc. manufactures and distributes globally various luxury goods, including handbags
and wallets. The company’s products are protected by the federally-registered trademark “Chanel”
and monogram marks. Its principal place of business is New York City. Chanel filed a lawsuit in
U.S. district court against defendant Liu Zhixian, a resident of China, doing business through
various websites. Chanel alleges trademark infringement by the defendant. Having been
unsuccessful in locating the defendant in China for service of process because the defendant used
false, incomplete, and invalid addresses and phone numbers, Chanel moved for the court to
authorize service of process by e-mail.
Issue: Should the court grant plaintiff Chanel authority to serve the defendant by e-mail?
Decision: The U.S. district court granted plaintiff Chanel’s motion for alternative services of
process on the defendant.
Reason: The U.S. district court reasoned that under the circumstances, service of process by e-mail
satisfied due process requirements.
Ethics Questions: It is not ethical for a person to infringe on the trademarks of others. Trademarks
are, after all, property. Intellectual property has value, and its owner should be able to enjoy its use
and profitability.
Long-Arm Statute –A court can obtain jurisdiction over persons and businesses located in another
state through use of a long-arm statute, provided the defendant has had some minimum contact with
the state.
Landmark U.S. Supreme Court Case Minimum Contacts: International Shoe Company v. State
of Washington
International Shoe had salespeople who sold shoes door-to-door within the state of Washington, and
were paid on a commission basis. They had no office in the state. Washington State determined that
they had failed to pay unemployment taxes on International’s employees, and served notice to the
organization on one of their Washington sales representatives, as well as by mailing the notice to the
company’s headquarters in St. Louis, Missouri. International made a special appearance to argue
that it had insufficient contacts within the state to warrant payment of the tax. The unemployment
office and appeals board, as well as various courts within the state, ruled against International.
International appealed to the U.S. Supreme Court. The Supreme Court ruled that International had
neither casual nor irregular contacts within the state, and was, therefore, subject to in personam
jurisdiction and service upon one of their agents, based on their “minimum contacts” within the
state. The Supreme Court clearly stated that the Due Process Clause permits jurisdiction over a
defendant in any state in which the defendant has “certain minimum contacts such that the
maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
Federal Court Case
Case 3.2 Long-Arm Statute: MacDermid, Inc. v. Deiter
Facts: MacDermid, Inc. is a chemical company with its principal place of business in Waterbury,
Connecticut. Jackie Deiter, a Canadian citizen, was employed by Macdermid’s Canadian subsidiary
in Canada. MacDermid stores proprietary data on computer servers in Waterbury, Connecticut, and
Deiter had access to those servers. Despite the fact that Dieter had signed an employment contract
agreeing not to misuse or misappropriate MacDermid’s proprietary electronic data, she did so prior
to her termination of employment. MacDermid sued Deiter in U.S. district court in Connecticut,
asserting long-arm jurisdiction and diversity of citizenship. Deiter subsequently filed a motion to
dismiss the lawsuit, claiming the court did not have jurisdiction over her because she lived in
Canada and committed the alleged illegal acts in Canada. The district court granted Deiter’s motion
and dismissed the case for lack of personal jurisdiction. MacDermid appealed.
Issue: Does the U.S. district court in Connecticut have personal jurisdiction over Deiter?
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Decision: The U.S. court of appeals held that the U.S. district court in Connecticut had personal
jurisdiction over Deiter and allowed the case to go to trial in Connecticut.
Reason: The court reasoned that Deiter knew the proprietary information was stored on
MacDermid’s servers in Connecticut. Further, MacDermid was a Connecticut corporation.
Accordingly, the court concluded that jurisdiction in U.S. district court in Connecticut was
appropriate.
Ethics Questions: The defendant did not act appropriately in this case, and it was fair to require the
defendant to defend herself in court in Connecticut.
In Rem Jurisdiction – Courts may have jurisdiction over property found within the state, based on
in rem (over the thing) jurisdiction.
Quasi In Rem Jurisdiction – Attachment jurisdiction occurs when a plaintiff who has obtained a
judgment attempts to satisfy the judgment by attaching property located in another state.
Venue – The court with the jurisdiction that is located closest to where the incident occurred or
where the parties live should hear the lawsuit. Pretrial publicity may prejudice jurors and may lead
to a request for a change of venue in order to get a more impartial jury. Forum shopping is the
process of looking for a more favorable court without a valid reason, and is frowned upon by most
courts.
Forum-Selection and Choice-of-Law Clauses – Because many business agreements are formed
between people from different states and different countries, many contracts have clauses that
specifically address the state’s or country’s laws that will be applied in case of a dispute, in what are
known as choice-of-law clauses. Additionally, through a forum-selection clause, the parties agree
which court will have jurisdiction over a dispute if one should arise in their course of dealings.
Federal Court
Case 3.3 Forum Selection Clause: Fteja v. Facebook, Inc.
Facts: Facebook, Inc. is a Delaware corporation with its principal place of business in Palo Alto,
California. During the Facebook sign-up process, a user is required to indicate that he or she agrees
to Facebook’s Terms of Service. The Terms of Service agreement contains a forum-selection clause
stipulating that any questions between Facebook and the user will be brought exclusively in a state
or federal court located in Santa Clara County, California. Mustafa Fteja, a resident of Staten Island,
New York, was an active user of Facebook.com. In order to create a Facebook account, Fteja
consented to the Terms of Service agreement. Fteja alleged that Facebook terminated his account
for discriminatory reasons. He sued Facebook in New York state court. Facebook moved to transfer
the case to U.S. district court for the northern district of California pursuant to the forum-selection
clause.
Issue: Is the forum-selection clause in the Facebook agreement enforceable?
Decision: The U.S. district court for the southern district of New York enforced the forum-selection
clause of Facebook’s terms of service and transferred Fteja’s case against Facebook to the U.S.
district court for the northern district of California.
Reason: The court concluded that Fteja consented to the terms of use and therefore to the forum-
selection clause. Fjeta agreed to litigate all disputes regarding his Facebook account exclusively in a
state or federal court located in Santa Clara County, California.
Ethics Questions: While it is legal for Facebook to contractually require its users to litigate against
the company only in Santa Clara County, California, some may question the ethics of such a
requirement. Nevertheless, Facebook users are charged with the responsibility of reading the terms
of service. Facebook membership is a choice the user voluntarily and willingly makes.
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Jurisdiction in Cyberspace
Today, with the advent of the Internet and the ability of persons and businesses to reach millions of
people in other states electronically, particularly through websites, modern issues arise as to whether
courts have jurisdiction in cyberspace. Zippo Manufacturing Company v. Zippo Dot Com, Inc. is an
important case that established a test for determining when a court has jurisdiction over the owner
or operator of an interactive, semi-interactive, or passive website.
Administrative Law
Administrative law is a combination of substantive law and procedural law.
Administrative Agencies – Federal administrative agencies are created by either Congress or the
executive branch, and have broad regulatory powers. State administrative agencies have a profound
effect on business. State administrative agencies are empowered to enforce state statutes. They have
the power to adopt rules and regulations to interpret the statutes they are empowered to administer.
Local governments such as cities, municipalities, and counties create local administrative agencies
to administer local regulatory law.
Cabinet-Level Departments – These are federal departments that advise the president and are
responsible for enforcing specific administrative statutes enacted by the U.S. Congress.
Powers of Administrative Agencies – The delegation doctrine states that an administrative agency
can be delegated powers to act in the stead of the legislative, executive, or judicial branches. Acts
outside their assigned scope have been declared unconstitutional.
Rule-making – Statutes have given administrative agencies the power to issue substantive
rules, provided that they follow the procedures established by the APA. They can also issue
rules that interpret existing statutes, as well as statements of policy explaining their
proposed courses of action.
Judicial authority – Administrative agencies often have the power to adjudicate issues
through administrative procedures, provided the procedural Due Process Clause of the
federal and state governments is followed.
Executive power – Administrative agencies are usually granted powers of investigation and
prosecution of violations of statutes and administrative rules and orders. They are also
granted subpoena power in order to acquire the necessary information.
Licensing – In order to enter into certain types of industries, statutes often require licenses
be acquired from administrative agencies.
Landmark Law: Administrative Procedure Act
The Administrative Procedure Act (APA) enacted by the U.S. Congress in 1946, establishes
procedures federal administrative agencies must follow in conducting their affairs. The APA
establishes notice requirements of actions a federal agency plans on taking. It requires hearings to
be held in most cases, and requires certain procedural safeguards and protocols to be followed at
these proceedings.
Administrative Law Judge – Administrative proceedings employ an employee of the agency, an
ALJ, as the sole determiner in each case. They issue an order stating the reason for their decisions,
which become final if not appealed.
Global Law: Judicial System of Japan
Comparatively speaking, there are much fewer lawyers and lawsuits in Japan than in the United
States. Culturally, Japan believes that confrontation should be avoided. In Japan, clients must
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usually pay a large, up-front fee (rather than a contingency fee) for lawyers to represent them, and
plaintiffs must pay a court filing fee based on the amount claimed (rather than a flat fee).
V. Key Terms and Concepts
Administrative agencies—Agencies that the legislative and executive branches of federal
and state governments establish.
Administrative law—Law that governments enact to regulate industries, businesses, and
professionals.
Administrative law judge (ALJ)—A judge, presiding over administrative proceedings, who
decides questions of law and fact concerning the case.
Administrative order—An ALJ’s decision is issued in the form of an administrative order.
The order must state the reasons for the ALJ’s decision. The order becomes final if it is not
appealed.
Administrative Procedure Act (APA)—An act that establishes certain administrative
procedures that federal administrative agencies must follow in conducting their affairs.
Administrative subpoena—An order that directs the subject of the subpoena to disclose the
requested information.
Article III of the U.S. Constitution— It provides that the federal government’s judicial
power is vested in one “Supreme Court.” This court is the U.S. Supreme Court.
Associate Justices of the U.S. Supreme Court—The eight other justices apart from the Chief
Justice of the U.S. Supreme Court.
Cabinet-level federal departments—Federal departments that advise the president and are
responsible for enforcing specific administrative statutes enacted by Congress.
Change of venue—In certain circumstances, when pretrial publicity may prejudice jurors, a
change of venue may be requested so that a more impartial jury can be found.
Chief Justice of the U.S. Supreme Court—Appointed by the president and responsible for
administration of the U.S. Supreme Court.
Choice-of-law clause— A contract provision that designates a certain state’s law or
country’s law that will be applied in any dispute concerning nonperformance of the
contract.
Circuit—The geographical area served by each U.S. court of appeals.
Concurrent jurisdiction—Jurisdiction shared by two or more courts.
Concurring opinion—An opinion that can be issued by a justice of the Supreme Court who
agrees with the outcome of a case but not the reason proffered by the other justices.
Delaware Court of Chancery—A special court which decides cases involving corporate
governance, fiduciary duties of corporate officers and directors, mergers and acquisitions,
and other business issues.
Dissenting opinion—An opinion which sets forth the reason why a justice of the Supreme
Court does not agree with a decision.
District—The geographical area served by a U.S. district court.
District of Columbia—Washington DC
Diversity of citizenship—A case between (1) citizens of different states and (2) a citizen of
a state and a citizen or subject of a foreign country.
En banc review—A review that can be requested by a petitioner in the U.S. court of appeals
after a decision is rendered by a three-judge panel.
Exclusive jurisdiction—Jurisdiction held by only one court.
Executive power—Administrative agencies are usually granted executive powers, such as
the power to investigate and prosecute possible violations of statutes and rules. This often
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25
includes the power to issue an administrative subpoena to a business or person to obtain
information.
Federal administrative agencies—Agencies created by the federal government to enforce
federal regulatory statutes. Examples include the Food and Drug Administration (FDA), the
National Labor Relations Board (NLRB), and the Equal Employment Opportunity
Commission (EEOC).
Federal question case—A case arising under the U.S. Constitution, treaties, and federal
statutes and regulations.
FISA warrant—Empowers a federal administrative agency, such as the Federal Bureau of
Investigation (FBI) or the National Security Agency (NSA), to conduct physical searches
and electronic surveillance of Americans or foreigners in the United States who are deemed
a threat to national security.
Forum-selection clause (choice of forum clause)—Contract provision that designates a
certain court to hear any dispute concerning nonperformance of the contract.
Forum shopping—Looking for a favorable court without a valid reason.
Full Faith and Credit Clause—A clause of the U.S. Constitution under which a judgment of
a court of one state must be given “full faith and credit” by the courts of another state.
General-jurisdiction trial court (court of record)—A court that hears cases of a general
nature that are not within the jurisdiction of limited-jurisdiction trial courts. Testimony and
evidence at trial are recorded and stored for future reference.
Highest state court—The highest court in a state court system; it hears appeals from
intermediate appellate state courts and certain trial courts.
In personam jurisdiction—Jurisdiction over the parties to a lawsuit.
In rem jurisdiction—Jurisdiction to hear a case because of jurisdiction over the property of
the lawsuit.
Intermediate appellate court (appellate court or court of appeals)—An intermediate court
that hears appeals from trial courts.
International Shoe Company v. State of Washington— A landmark U.S. Supreme Court
case that established the minimum contacts standard.
Judicial authority—Authority of an administrative agency to adjudicate cases in an
administrative proceeding.
Judicial review—Where an enabling statute does not provide for review, the APA
authorizes judicial review of federal administrative agency actions.
License—Many administrative agencies are empowered to issue a license before a person
can engage in certain professions or businesses. For example, the Office of the Comptroller
of the Currency (OCC), a federal government agency, issues charters for national banks.
Limited-jurisdiction trial court (inferior trial court)—A court that hears matters of a
specialized or limited nature.
Local administrative agencies—Agencies created by cities, municipalities, and counties to
administer local regulatory law.
Long-arm statute—A statute that extends a state’s jurisdiction to nonresidents who were not
served a summons within the state.
Majority decision—A decision of the U.S. Supreme Court where a majority of the justices
agree as to the outcome and reasoning used to decide a case.
Minimum contact— A nonresident defendant in a civil lawsuit must have had some
minimum contact with the state such that the maintenance of that lawsuit in that state does
not offend traditional notions of fair play and substantial justice.
Petition for certiorari—A petition asking the Supreme Court to hear one’s case.
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Plurality decision—A decision of the U.S. Supreme Court where a majority of the justices
agree as to the outcome of a case but not as to the reasoning for reaching the outcome.
Procedural administrative law—Establishes the procedures that must be followed by an
administrative agency while enforcing substantive laws.
Quasi in rem jurisdiction (attachment jurisdiction)—Jurisdiction allowed a plaintiff who
obtains a judgment in one state to try to collect the judgment by attaching property of the
defendant located in another state.
Rule of four— The votes of four justices are necessary to grant an appeal and schedule an
oral argument before the Supreme Court.
Rules and regulations—Adopted by administrative agencies to interpret the statutes that
they are authorized to enforce.
Service of process—A summons is served on the defendant to obtain personal jurisdiction
over him or her.
Small claims court—A court that hears civil cases involving small dollar amounts.
Special federal courts—Federal courts that hear matters of specialized or limited
jurisdiction.
Standing to sue—The plaintiff must have some stake in the outcome of the lawsuit.
State administrative agencies—Administrative agencies that states create to enforce and
interpret state law.
State courts—A separate court system that is present in each state, Washington, DC and
each territory of the United States. It includes limited-jurisdiction trial courts, general-
jurisdiction trial courts, intermediate appellate courts, and a supreme court.
State supreme court—The highest court in a state court system; it hears appeals from
intermediate state courts and certain trail courts.
Substantive administrative law—Substantive administrative law is law that an
administrative agency enforces—federal statutes enacted by Congress or state statutes
enacted by state legislatures.
Substantive rules—Rules issued by an administrative agency that has the force of law and
to which covered persons and businesses must adhere.
Supreme Court of the United States (U.S. Supreme Court)— The highest court in the land
located in Washington, DC.
Tie decision—A Supreme court decision where the number of votes cast by the justices
leads to a tie and the decision of the lower court is affirmed. It occurs when all nine judges
are not present.
Unanimous decision— A Supreme court decision where all the justices voting agree as to
the outcome and reasoning used to decide a case.
U.S. Bankruptcy Court—Special federal court that hears cases involving federal bankruptcy
laws.
U.S. Court of Appeals—The federal court system’s intermediate appellate court.
U.S. Court of Appeals for the Armed Forces—Special federal court that exercises appellate
jurisdiction over members of the armed services.
U.S. Court of Appeals for the Federal Circuit—A U.S. Court of Appeals in Washington,
D.C. that has special appellate jurisdiction to review the decisions of the Court of Federal
Claims, the Patent and Trademark Office, and the Court of International Trade.
U.S. Court of Appeals for Veterans Claims—Special federal court that exercises jurisdiction
over decisions of the Department of Veterans Affairs.
U.S. Court of Federal Claims—Special federal court that hears cases brought against the
United States.
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27
U.S. Court of International Trade—Special federal court that handles cases that involve
tariffs and international trade disputes.
U.S. district courts—The federal court system’s trial courts of general jurisdiction.
U.S. District of Columbia Circuit—The 12th circuit court, located in Washington, DC.
U.S. Foreign Intelligence Surveillance Court of Review (FISCR)—An appellate court that
reviews an appeal by a federal law enforcement agency when it is denied a FISA warrant.
U.S. Foreign Intelligence Surveillance (FISA) Court—A court located in Washington, DC
that hears requests by federal law enforcement agencies, such as the Federal Bureau of
Investigation (FBI) and the National Security Agency (NSA), for FISA warrants.
U.S. Tax Court—Special federal court that hears cases that involve federal tax laws.
Venue—A concept that requires lawsuits to be heard by the court with jurisdiction that is
nearest the location in which the incident occurred or where the parties reside.
Writ of certiorari—An official notice that the Supreme Court will review one’s case.
Zippo Manufacturing Company v. Zippo Dot Com, Inc.—An important case that established
a test for determining when a court has jurisdiction over the owner or operator of an
interactive, semi-interactive, or passive website.
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