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BLAW 3201 (13)
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Chapter 2

Chapter 2 Outline (got 94% in the course)

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Business Law
BLAW 3201
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Chapter 2Courts and Alternative Dispute ResolutionIn the US there are 52 court systemsone for each of the 50 states the District of Columbia and a federal systemThe federal courts are NOT superior to the state courts they are simply an independent system of courts which derives its authority from Article III of the US ConstitutionThe US Supreme Court is the final controlling voice over all of these 52 court systems at least when questions of federal law are involvedIThe Judiciarys Role in American GovernmentaThe essential role of the judiciarythe courtsin the American government system the interpret the laws and apply them to specific situationsbJudicial review is the process by which courts decide on the constitutionality of legislative enactments and actions of the executive branch The power of judicial review enables the judicial branch to act as a check on the other two branches of government in line with the system of check and balances established by the US Constitution iEstablished by the court case Marbury v Madison which the Supreme Court stated It is emphatically the province and duty of the Judicial Department to say what the law isIf two laws conflict with each other the courts must decide on the operation of eachSo if the law be in opposition of the Constitution the Court must determine which of these conflicting rules govern the case This is the very essence of judicial dutyIIBasic Jurisdiction RequirementsaJurisdiction Juris means law and diction means to speakthe power to speak the law iBefore any court can hear a case it must have two types of jurisdictionJurisdiction over the person defendant or property involved andJurisdiction over the subject matter of the dispute AJurisdiction Over Persons or PropertyaIn personal jurisdiction personal jurisdiction over any person or business that resides in a certain geographic area bIn rem jurisdiction jurisdiction over the thing jurisdiction over property that is located within the boundaries of an areaiLong arm statute a court can exercise personal jurisdiction over certain outofstate defendants based on activities that took place within the state 1The court must demonstrate that the defendant had sufficient contacts or minimum contacts with the state to justify the jurisdiction iiCorporate Contacts in regard to corporations the minimum contacts requirement is usually met if the corporation does business within the states advertises or sells its products within the state or places its goods into the stream of commerce with the INTENT that the good be sold in the state BJurisdiction Over Subject MatterSubject matter jurisdiction refers to the limitations on the types of cases a court can hear
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