chapter 4 detailed

Business LawBusiness Law

Chapter 4Chapter 4

Mr. WhiselMr. Whisel

Section 4.1 GoalsSection 4.1 Goals

Explain how disputes can be settled Explain how disputes can be settled without resort to the courtswithout resort to the courts

Name the different levels of courts Name the different levels of courts and describe their powersand describe their powers

What’s Your Verdict?What’s Your Verdict?

7-Eleven sells franchises for stores 7-Eleven sells franchises for stores bearing its name. The franchise bearing its name. The franchise agreement specifies that disputes agreement specifies that disputes between 7-Eleven and those who buy between 7-Eleven and those who buy a franchise should be settled by a franchise should be settled by arbitration rather than by a trial in arbitration rather than by a trial in court.court.

Can 7-Eleven compel its franchise to Can 7-Eleven compel its franchise to use arbitration instead of litigation?use arbitration instead of litigation?

Why Arbitration for 7-Eleven?Why Arbitration for 7-Eleven?

The disputing parties avoid costs, The disputing parties avoid costs, delays, and difficulties of a court delays, and difficulties of a court trial.trial.

Even before arbitration the best way Even before arbitration the best way might be to just talk to the people might be to just talk to the people involved.involved.

Too often people quickly litigateToo often people quickly litigate

Litigation Litigation Taking a dispute to court.Taking a dispute to court.

MediatorMediator Third party who tries to develop a solution Third party who tries to develop a solution

acceptable to both sides of a dispute.acceptable to both sides of a dispute. Does not bind either party.Does not bind either party.

ArbitratorArbitrator Person holding an informal hearing to Person holding an informal hearing to

determine what happened.determine what happened. Unlike mediation, arbitration is binding for Unlike mediation, arbitration is binding for

both parties, enforceable by the courtsboth parties, enforceable by the courts

Levels of CourtsLevels of Courts CourtCourt

Government forum that administers justice Government forum that administers justice under the law. Both Civil and Criminalunder the law. Both Civil and Criminal

Award Damages- CivilAward Damages- Civil Impose Imprisonment- CriminalImpose Imprisonment- Criminal Impartial and Thorough Procedures to make a Impartial and Thorough Procedures to make a

decisiondecision Witness- Person who gives an account of how Witness- Person who gives an account of how

they perceived the incident.they perceived the incident. Equal opportunity for Plaintiff and DefendantEqual opportunity for Plaintiff and Defendant Two types of CourtsTwo types of Courts

Trial CourtsTrial Courts Appellate CourtsAppellate Courts


Doyle made and illegal U-turn. A police Doyle made and illegal U-turn. A police officer saw it and gave him a citation officer saw it and gave him a citation (order to appear in court). Doyle (order to appear in court). Doyle claimed that the sign forbidding a U-claimed that the sign forbidding a U-turn at that intersection was obstructed turn at that intersection was obstructed by a tree branch. The officer replied, by a tree branch. The officer replied, “Sorry, Sir Tell it to the judge in court.”“Sorry, Sir Tell it to the judge in court.”

Why is a court necessary in this Why is a court necessary in this situation?situation?

Why courts?Why courts?

Necessary to decide whether Doyle is Necessary to decide whether Doyle is telling the truth and whether the telling the truth and whether the blocked sign would be a valid blocked sign would be a valid defense.defense.

Trial CourtsTrial Courts

First Court to hear a disputeFirst Court to hear a dispute Original JurisdictionOriginal Jurisdiction

Power to hear a case in full for the first Power to hear a case in full for the first time.time.

Information is presented at this level Information is presented at this level to prove alleged factsto prove alleged facts

Consists of Judges and LawyersConsists of Judges and Lawyers Other people involved in the courtOther people involved in the court

Clerks, Sheriffs, Marshalls, Bailiffs, and Clerks, Sheriffs, Marshalls, Bailiffs, and Jury MembersJury Members

OperationOperation ClerksClerks

Enter cases on the court calendarEnter cases on the court calendar Keep Records of ProceedingsKeep Records of Proceedings Compute Court CostsCompute Court Costs

Sheriffs and Marshalls (Federal)Sheriffs and Marshalls (Federal) Summon WitnessesSummon Witnesses Keep Court in orderKeep Court in order Carryout JudgmentsCarryout Judgments

JuriesJuries Sworn in citizens by the court to decide issues Sworn in citizens by the court to decide issues

of fact in court cases.of fact in court cases.

Appellate CourtsAppellate Courts Review the decisions of the lower courts when a Review the decisions of the lower courts when a

party claims an error was made during the party claims an error was made during the previous proceedingprevious proceeding

Do not hear witnesses (generally)Do not hear witnesses (generally) Do not accept new evidence (generally)Do not accept new evidence (generally) Concerned with errors in lawConcerned with errors in law Examine the TranscriptExamine the Transcript

A verbatim record of what went on at trial.A verbatim record of what went on at trial. Appellate BriefsAppellate Briefs

Written arguments on the issues of laws submitted by Written arguments on the issues of laws submitted by attorneysattorneys

After case make decision whether the lower court After case make decision whether the lower court should be affirmed, reversed, or remanded (sent should be affirmed, reversed, or remanded (sent back to lower court).back to lower court).

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Think About Legal ConceptsThink About Legal Concepts Think Critically About EvidenceThink Critically About Evidence


Explain how disputes can be settled Explain how disputes can be settled without resort to the courtswithout resort to the courts

Name the different levels of courts Name the different levels of courts and describe their powersand describe their powers


Identify the source of power of the Identify the source of power of the federal courtsfederal courts

Name the various levels of federal Name the various levels of federal courts and describe their jurisdictionscourts and describe their jurisdictions


Jim and Marla were discussing how Jim and Marla were discussing how U.S. Bankruptcy Courts were U.S. Bankruptcy Courts were empowered to decide cases. Jim said empowered to decide cases. Jim said that federal courts received their that federal courts received their power from the U.S. Constitution. power from the U.S. Constitution. Marla thought Congress had created Marla thought Congress had created and empowered the bankruptcy and empowered the bankruptcy courts.courts.

Who is correct?Who is correct?

Who is Correct?Who is Correct?

BothBoth Federal Courts receive power from Federal Courts receive power from

the Constitutionthe Constitution Constitution granted Congress to Constitution granted Congress to

divide powersdivide powers

Origins of Federal CourtsOrigins of Federal Courts

Article III of ConstitutionArticle III of Constitution Section ISection I

Federal Judiciary ActFederal Judiciary Act Ordained and Established the U.S. Supreme Ordained and Established the U.S. Supreme

Court and the circuit courts of appealsCourt and the circuit courts of appeals Federal District CourtsFederal District Courts

Specialized courts, such as those Specialized courts, such as those concerned primarily with tax or bankruptcy concerned primarily with tax or bankruptcy matters, also were created as the need for matters, also were created as the need for them arosethem arose

JurisdictionJurisdiction

Three Levels of Federal CourtsThree Levels of Federal Courts Federal District CourtsFederal District Courts Federal Courts of AppealsFederal Courts of Appeals U.S. Supreme CourtU.S. Supreme Court

General JurisdictionGeneral Jurisdiction Courts that can hear almost any kind of Courts that can hear almost any kind of

casecase Special JurisdictionSpecial Jurisdiction

Courts that can only hear one type of caseCourts that can only hear one type of case

Federal District CourtsFederal District Courts Lowest level of the Federal Courts with Lowest level of the Federal Courts with

general Jurisdictiongeneral Jurisdiction Trial Court- (First court to hear a dispute)Trial Court- (First court to hear a dispute) Determine the facts and make initial Determine the facts and make initial

determination of the law to use in deciding determination of the law to use in deciding the casethe case

Original Jurisdiction over federal questions, Original Jurisdiction over federal questions, or cases that arise under the Constitution, or cases that arise under the Constitution, U.S. Law, and U.S. Treaties, and Lawsuits U.S. Law, and U.S. Treaties, and Lawsuits between citizens of different states between citizens of different states (diversity of citizenship over $75,000 to (diversity of citizenship over $75,000 to dispute in federal court)(Less than dispute in federal court)(Less than $75,000 goes to state court with power$75,000 goes to state court with power

Federal Court of AppealsFederal Court of Appeals Appellate Court to Federal District CourtAppellate Court to Federal District Court Do NOT accept any new evidence or call Do NOT accept any new evidence or call

witnesseswitnesses Review of lower courts rulingReview of lower courts ruling

Examine transcript/oral argument of attorneyExamine transcript/oral argument of attorney No Appellate Court can change the factual No Appellate Court can change the factual

determinations of a jury.determinations of a jury. 13 Federal Circuit Court of Appeals13 Federal Circuit Court of Appeals

12 Assigned to a geographical area12 Assigned to a geographical area 1 “Federal Circuit”1 “Federal Circuit”

Handles patent cases appealed from district courts Handles patent cases appealed from district courts Handles special jurisdiction casesHandles special jurisdiction cases

United States Supreme CourtUnited States Supreme Court

Original ( State Supreme Courts) and Original ( State Supreme Courts) and Appellate Jurisdiction (District Court of Appellate Jurisdiction (District Court of AppealsAppeals

Highest form of CourtHighest form of Court Must find an issue with Constitution (if Must find an issue with Constitution (if

proven request a Writ of Certiorari)proven request a Writ of Certiorari) Writ of CertiorariWrit of Certiorari

Turning over the record of the case for Turning over the record of the case for reviewreview

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Think About Legal ConceptsThink About Legal Concepts Think Critically About EvidenceThink Critically About Evidence


Identify the source of power of the Identify the source of power of the federal courtsfederal courts

Name the various levels of federal Name the various levels of federal courts and describe their jurisdictionscourts and describe their jurisdictions


Compare the structure of a typical Compare the structure of a typical state court with the structure of the state court with the structure of the federal courtsfederal courts

Identify typical state courts of Identify typical state courts of specialized jurisdictionspecialized jurisdiction

Discuss the jurisdiction of the various Discuss the jurisdiction of the various typical state courtstypical state courts

State Legal SystemState Legal System

Resembles FederalResembles Federal Three TiersThree Tiers

Geographical based Trial CourtsGeographical based Trial Courts Appellate Level of CourtsAppellate Level of Courts State Supreme CourtsState Supreme Courts

State Trial CourtsState Trial Courts

Known as Circuit Courts, District Known as Circuit Courts, District Courts, or Court of Common PleasCourts, or Court of Common Pleas

Court of RecordCourt of Record Keeps an exact account of what goes on Keeps an exact account of what goes on

at trialat trial Accuracy VitalAccuracy Vital Also known as a transcriptAlso known as a transcript

Original JurisdictionOriginal Jurisdiction

State Court of AppealsState Court of Appeals

Panel of JudgesPanel of Judges No more than threeNo more than three

Examine Transcript and Oral Examine Transcript and Oral ArgumentArgument

No new evidence or witnessesNo new evidence or witnesses If find that wrong law used, sent back If find that wrong law used, sent back

down to trial court to be retrieddown to trial court to be retried

State Supreme CourtsState Supreme Courts

Case that involves the most complex legal Case that involves the most complex legal issues are taken to the justices of the stateissues are taken to the justices of the state

JusticeJustice Title given to Judge that sits on State and Title given to Judge that sits on State and

Federal Supreme CourtFederal Supreme Court Review legal issues at hand and oral Review legal issues at hand and oral

argumentargument Final measure in the states unless Final measure in the states unless

Constitution or Federal issues are Constitution or Federal issues are involved, next step U.S. Supreme Courtinvolved, next step U.S. Supreme Court

State Courts with Special State Courts with Special JurisdictionJurisdiction

Associate Circuit CourtsAssociate Circuit Courts Hear minor criminal cases, traffic offenses, and lawsuits which Hear minor criminal cases, traffic offenses, and lawsuits which

small amount are involved (<$25,000)small amount are involved (<$25,000) City or Municipal CourtsCity or Municipal Courts

Traffic and Criminal Traffic and Criminal Less serious violationsLess serious violations

Small Claims CourtsSmall Claims Courts Handle disputes that are generally less than $2500Handle disputes that are generally less than $2500 No JuryNo Jury

Juvenile CourtsJuvenile Courts Over 13 but under 18Over 13 but under 18 Criminal acts that should not be considered adultsCriminal acts that should not be considered adults Full Constitutional RightsFull Constitutional Rights

Probate CourtsProbate Courts Courts that administer wills and estatesCourts that administer wills and estates

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Think About Legal ConceptsThink About Legal Concepts Think Critically About EvidenceThink Critically About Evidence Do all What’s Your Verdicts?Do all What’s Your Verdicts?


Compare the structure of a typical Compare the structure of a typical state court with the structure of the state court with the structure of the federal courtsfederal courts

Identify typical state courts of Identify typical state courts of specialized jurisdictionspecialized jurisdiction

Discuss the jurisdiction of the various Discuss the jurisdiction of the various typical state courtstypical state courts

Chapter in ReviewChapter in Review

Page 62-65Page 62-65

chapter 4 detailed

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