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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) All of the above

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In a suit to compel arbitration, a court will order a dispute to be arbitrated if


A) both parties consented to it.
B) the rules for the arbitration are fair to at least one of the parties.
C) the relevant state or federal statute does not include such claims.
D) all of the choices.

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

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A question of law is generally the focus of an appellate court.

A) True
B) False

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A court's review of an arbitrator's decision is the same in scope as an appellate court's review of a trial court's decision.

A) True
B) False

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Rock Quarry Inc. and Serene Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with the quarry's representative to discuss the matter without the vineyard's representative being present. If this substantially prejudices the grape grower's rights, a court will most likely


A) dismiss the dispute.
B) review the record of the case.
C) file a complaint against the arbitrator.
D) set aside any award.

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

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The simplest form of alternative dispute resolution is mediation.

A) True
B) False

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Any court can exercise jurisdiction over any person.

A) True
B) False

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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

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Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have


A) concurrent jurisdiction with federal courts.
B) concurrent jurisdiction with other state courts.
C) exclusive jurisdiction.
D) no jurisdiction.

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

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Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing


A) under the minimum-contacts test.
B) on the basis of a federal question.
C) in no circumstances.
D) only if Beef Packing files the suit.

E) All of the above
F) C) and D)

Correct Answer

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A trial court's capacity to directly observe witnesses' gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to


A) conduct a new trial and re-examine the witnesses.
B) apply the trial court's interpretation of the law in the case.
C) defer to the trial court's findings on questions of fact.
D) focus on what really happened in regard to the dispute.

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

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For purposes of diversity jurisdiction, a corporation is not considered a citizen of any particular state.

A) True
B) False

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The jurisdiction of the federal courts is limited because


A) the federal government has limited powers.
B) Congress sets the limits.
C) the territory of the United States is limited.
D) the states can exercise their authority under long arm statutes.

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

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

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

A) True
B) False

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A challenge to the constitutionality of an executive order that limits certain state actions is


A) beyond the jurisdiction of the courts.
B) solely for the executive to decide.
C) subject to the exclusive authority of Congress.
D) within the power of judicial review.

E) All of the above
F) C) and D)

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Large corporations that do business in many states are now automatically subject to jurisdiction in all of them.

A) True
B) False

Correct Answer

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In a case based on diversity of citizenship, a court will apply


A) federal common law.
B) the relevant state law.
C) any law that the parties to the case agree to apply to their dispute.
D) the law that produces the most equitable result.

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

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A dispute between two cheese makers-Cheddar Creamery Company and Deli Dairy Inc.-falls under a state statute on unfair trade practices. The application of this law to these parties must be determined by


A) an appellate court.
B) a trial court.
C) a judge.
D) a jury.

E) All of the above
F) A) and D)

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

A) True
B) False

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