Business Law Study Set 1

Business

Quiz 2 :

The Court System and Dispute Resolution

Quiz 2 :

The Court System and Dispute Resolution

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The Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the company's CEO, misled investors in 2001 about the true financial condition of the company. During the time of the alleged misrepresentation, Mr. Ellison was working with a biographer on his life story and there are videotapes of Mr. Ellison's interviews with his biographer as well as e-mails between the two that discuss Oracle. Could the Nursing Home Pension Fund have access to the tapes and e-mails Explain how. [ Nursing Home Pension Fund, Local 144 v. Oracle Corp., 380 F.3d 1226 (9th Cir.)]
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In this case the nursing home (plaintiff) would like to seek evidence made by defendant's CEO. The evidence contains email and interviews made by the CEO. The plaintiff can do so during the discovery process of the lawsuit, by requesting defendant to hand over the requested documents and interview tapes. The plaintiff may also request a sub-poena a court order to obtain documents from people in possession of these evidence, such as the author of the CEO's biography.

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Indicate whether the following courts are courts of original, general, limited, or appellate jurisdiction: a. Small claims court b. Federal bankruptcy court c. Federal district court d. U.S. Supreme Court e. Municipal court f. Probate court g. Federal court of appeals
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Courts with original jurisdiction have jurisdiction to try the case first.
Courts with general jurisdiction have jurisdiction on most civil and criminal cases.
Courts with limited jurisdiction have jurisdiction only on certain cases.
Courts with appellate jurisdiction have jurisdiction to decide cases on appeal
a) Small claims court has original and limited jurisdiction on matters of dispute usually less than a set amount of money.
b) Federal Bankruptcy Court has original and limited jurisdiction on matters dealing with bankruptcy proceedings.
c) Federal District Court has original and general jurisdiction. It is the trial court on most matters dealing with federal law, or interstate disputes
d) U.S. Supreme court has original , general, and appellate jurisdiction. It the original court for certain trials affecting states, and foreign ambassadors. It can hear on most matters, and review appeals from lower court systems.
e) Municipal court has original and general jurisdiction. It is the trial court for on most matters within its locality.
f) Probate court has original and limited jurisdiction on matters dealing with the estate of a diseased person.
g) Federal court of appeal has appellate jurisdiction and in the case of the Federal Circuit has limited jurisdiction. The court of appeals review appeals from lower courts and those in the Federal Circuit are limited to hearing cases on certain issues.

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Two doctors had a dispute over who was doing how much work at their clinic. Their dispute was submitted to arbitration and the arbitrator held in favor of the less experienced doctor. The senior doctor wants the arbitration set aside. Is it possible for the arbitrator's decision to be set aside
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In today's world time is an important and most valuable element for businesses. Every second is treated as money. Businesses are required to compete in a huge competitive world by making the best use of time and resources. In spite of well written contracts and agreements disputes are bound to happen. The disputes if any has to be resolved as quickly as possible in order to restore the things back to normal. Business disputes can be resolved through court or through alternative dispute mechanism.
Most of the business try to resolve the disputes through alternative dispute resolution (ADR) and try to avoid court because:
• The legal procedure and paper work involved is more through court procedure
• The lawyers are expensive to be hired and more money has to be invested for court processes
• Courts consume lot of time due to many legal steps
Therefore, to save time and money, businesses use alternate dispute resolution (ADR) methods. ADR refers to settling disputes outside the court using any of the ADR methods such as neutral evaluation, negotiation, mediation, conciliation and arbitration.
Arbitration is one of the methods of alternate dispute resolution. In arbitration, the parties to a dispute select a neutral third party to hear and determine a resolution for which the parties agrees to bound to the arbitrators decision.
Most arbitration is considered to be binding and courts do enforce them when the parties agree that the decision is binding. However an arbitrator's judgement can be set aside only in the following cases:
1. When there is a clear evidence of fraud or corrupt or undue practice on the part of the arbitrator or any of the party in making the judgement
2. Where the arbitrators are guilty of any misconduct
3. When the arbitrator has worked beyond the scope of the arbitration agreement and is not in accordance with the arbitration act
4. When there is a procedural error in the process
In a situation where two doctors had a dispute on who was doing how much work at their place sort to arbitration, arbitrator favoured the less experienced doctor.
The senior doctor can set aside the arbitrators judgement if he can prove that there is unreasonableness and a potential fraud or corrupt action on the part of the arbitrator.

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What would happen if lawyers for one side withheld evidence in a case How could the party affected have the problem corrected
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Winona Ryder was arrested for shoplifting from Saks Fifth Avenue in California. One of the members of the jury panel for her trial was Peter Guber, a Hollywood executive in charge of the production of three films in which Ms. Ryder starred, including Bram Stoker's Dracula, The Age of Innocence, and Little Women. If you were the prosecuting attorney in the case, how could you discover such information about this potential juror, and what are your options for excluding him from selection [Rick Lyman, "For the Ryder Trial, a Hollywood Script," New York Times , November 3, 2002, SL-1
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List the steps in a lawsuit. Begin with the filing of the complaint, and explain the points at which there can be a final determination of the parties' rights in the case.
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Ceasar Wright was a longshoreman in Charleston, South Carolina, and a member of the International Longshoremen's Association (AFLCIO). Wright used the union hiring hall. The collective bargaining agreement (CBA) of Wright's union provides for arbitration of all grievances. Another clause of the CBA states: "It is the intention and purpose of all parties hereto that no provision or part of this Agreement shall be violative of any Federal or State Law." On February 18, 1992, while Wright was working for Stevens Shipping and Terminal Company (Stevens), he injured his right heel and back. He sought permanent compensation from Stevens and settled his claims for $250,000 and another $10,000 in attorney fees. Wright was also awarded Social Security disability benefits. In January 1995, Wright, whose doctor had approved his return to work, returned to the hiring hall and asked to be referred for work. Wright did work between January 2 and January 11, 1995, but when the companies realized Wright had been certified as permanently disabled, they deemed him not qualified for longshoreman work under the CBA and refused to allow him to work for them. Wright did not file a grievance under the union agreement but instead hired a lawyer and proceeded with a claim under the Americans with Disabilities Act. The district court dismissed the case because Wright had failed to pursue the grievance procedure provided by the CBA. Must Wright pursue the dispute procedure first, or can he go right to court on the basis of his federal rights under the Americans with Disabilities Act [ Wright v. Universal Maritime Service Corp., 525 U.S. 70]
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John Watson invested $5,000,000 in SmartRead, Inc., a company that was developing an electronic reading device. Within a few months, the $5,000,000 was spent but SmartRead never developed the reading device. John filed suit against directors of SmartRead for their failure to supervise SmartRead's CEO in his operation of the company. The directors used an expert on corporate governance to testify that the directors had done all that they could to oversee the company. The expert did not disclose that he had served as a director of a company and had been found to be negligent in his role there and had been required to pay $370,000 to shareholders. The directors won the case. Is there anything Watson can do
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Carolyn, Elwood, and Isabella are involved in a real estate development. The development is a failure, and Carolyn, Elwood, and Isabella want to have their rights determined. They could bring a lawsuit, but they are afraid the case is so complicated that a judge and jury not familiar with the problems of real estate development would not reach a proper result. What can they do
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Larketta Randolph purchased a mobile home from Better Cents Home Builders, Inc., and financed her purchase through Green Tree Financial Corporation. Ms. Randolph signed a standard form contract that required her to buy Vendor's Single Interest insurance, which protects the seller against the costs of repossession in the event of default. The agreement also provided that all disputes arising from the contract would be resolved by binding arbitration. Larketta found that there was an additional $15 in finance charges that were not disclosed in the contract. She and other Green Tree customers filed a class-action suit to recover the fees. Green Tree moved to dismiss the suit because Larketta had not submitted the issue to arbitration. Larketta protests, "But I want the right to go to court!" Does she have that right What are the rights of parties under a contract with an arbitration clause [ Green Tree Financial Corp. v. Randolph , 531 U.S. 79]
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Mostek Corp., a Texas corporation, made a contract to sell computer-related products to North American Foreign Trading Corp., a New York corporation. North American used its own purchase order form, on which appeared the statement that any dispute arising out of an order would be submitted to arbitration, as provided in the terms set forth on the back of the order. Acting on the purchase order, Mostek delivered almost all of the goods but failed to deliver the final installment. North American then demanded that the matter be arbitrated. Mostek refused to do so. Was arbitration required [ Application of Mostek Corp. , 502 N.Y.S.2d 181 (App. Div.)]
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Ralph Dewey has been charged with a violation of the Electronic Espionage Act, a federal statute that prohibits the transfer, by computer or disk or other electronic means, of a company's proprietary data and information. Ralph is curious. What type of court has jurisdiction Can you determine which court
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Explain why a business person would want to use alternative dispute resolution methods. Discuss the advantages. What disadvantages do you see
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Jerry Lewinsky was called for jury duty. When voir dire began, Jerry realized that the case involved his supervisor at work. Can Jerry remain as a juror on the case Why or why not
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Martha Simms is the plaintiff in a contract suit she has brought against Floral Supply, Inc., for its failure to deliver the green sponge Martha needed in building the floral designs she sells to exclusive home decorators. Martha had to obtain the sponge from another supplier and was late on seven deliveries. One of Martha's customers has been called by Martha's lawyer as a witness and is now on the witness stand, testifying about Martha's late performance and the penalty she charged. The lawyer for Floral Supply knows that Martha's customer frequently waives penalties for good suppliers. How can Floral Supply's lawyer get that information before the jury
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