Chapter 2b Thunder Bay Utility Company And seeks Examine Certain

Document Type
Test Prep
Book Title
The Legal Environment of Business: Text and Cases: Ethical-- Regulatory-- Global-- and Corporate Issues 8th Edition
Frank B. Cross, Roger LeRoy Miller
1. The function of the courts is to interpret and apply the law.
1. State courts are inferior to federal courts.
1. The political branch of government is the final authority concerning the
constitutionality of a law.
1. Under a long arm statute, a court cannot exercise jurisdiction over a
defendant who has minimum out-of-state contacts.
1. A state court can exercise jurisdiction over property located within the
state’s boundaries regardless of the property owners’ location.
1. For purposes of diversity of citizenship, a corporation is a citizen only
of the state in which its principal place of business is located.
1. A business firm may have to comply with the laws of any jurisdiction in
which it actively targets customers for its products.
1. To have standing to sue, a party must have been injured or have been
threatened with injury by the action about which he or she is
1. Small claims courts are inferior trial courts.
1. Courts of appeals conduct new trials in which evidence is submitted to
the court but witnesses are not examined.
1. U.S. district courts have original jurisdiction in matters involving federal
1. The United States Supreme Court can review any case decided by any
of the federal courts of appeals.
1. Before a lawsuit begins, the court must have proof that the defendant
was notified.
1. Discovery is the process of obtaining information from an apposing
party before trial.
1. A deposition is sworn testimony by a party to a lawsuit or any
1. Information stored electronically cannot be the object of a discovery
1. A closing argument is a statement by a party that results in a
summary judgment in that party’s favor.
1. A court of appeals hears all of the same evidence that the trial court
1. A petitioner is the party against whom an appeal is taken.
1. The expenses associated with an appeal are minor.
1. Harvey, a resident of Indiana, has an accident with Janette, a resident
of Kentucky, while driving through that state. Janette files a suit against
Harvey in Kentucky. Regarding Harvey, Kentucky has
a. diversity jurisdiction.
b. in personam jurisdiction.
c. in rem jurisdiction.
d. no jurisdiction.
1. Inferior Company, which is based on South Carolina, makes and sells
products that are poorly made. Jack, who is a resident of North
Carolina, buys an Inferior product and suffers harm through its use.
The diversity of citizenship between these parties means that
a. federal and state courts have concurrent jurisdiction.
b. federal courts have exclusive jurisdiction.
c. no court has jurisdiction.
d. state courts have exclusive jurisdiction.
1. Lora is a resident of Illinois. Ned is a resident of Wisconsin. They
dispute the ownership of a boat docked in a Michigan harbor. This
diversity of citizenship could serve as a basis for
a. federal jurisdiction.
b. general jurisdiction.
c. limited jurisdiction.
d. state jurisdiction.
1. Jo files a suit against Kara in a Missouri state court. Kara’s only
connection to Missouri is an ad on the Web originating in Nebraska.
For Missouri to exercise jurisdiction, the issue is whether Kara, through
her ad, has
a. a commercial cyber presence in Missouri.
b. conducted substantial business with Missouri residents.
c. general maximum contact with Missouri.
d. solicited virtual business in Missouri.
1. Child’s Play, Inc., sells a toy with a dangerous defect. Drew buys the
toy for his son but discovers the defect before the child is injured.
Drew files a suit against Child’s Play. The firm’s best ground for
dismissal of the suit is that Drew does not have
a. certiorari.
b. jurisdiction.
c. standing to sue.
d. sufficient minimum contacts.
1. Lacey files a suit in Michigan against Ned over the ownership of a
boat docked in a Michigan harbor. Lacey and Ned are residents of
Ohio. Ned could ask for a change of venue on the ground that Ohio
a. has a sufficient stake in the matter.
b. has jurisdiction.
c. has sufficient minimum contacts with the parties.
d. is a more convenient location to hold the trial.
1. Kit loses her suit against Lou in a Minnesota state trial court. Kit
appeals to the state court of appeals and loses again. Kit would appeal
next to
a. a U.S. district court.
b. the Minnesota Supreme Court.
c. the United States Supreme Court.
d. the U.S. Court of Appeals for the Eighth Circuit.
1. The Idaho Supreme Court rules against Jiffy Mart in a case against
Kwik Stop Stores, Inc. Jiffy Mart files an appeal with the United States
Supreme Court. The Court does not hear the case. This
a. is a decision on the merits with value as a precedent.
b. indicates agreement with the Idaho court’s decision.
c. means nothing.
d. means that the Idaho court’s decision is the law in Idaho.
1. Jason files a suit against Maybelline. If Maybelline fails to respond,
a. must appeal the case to a different court.
b. must refile the suit in the same court.
c. will be awarded the remedy sought.
d. will have a default judgment entered against him.
1. Liv wants to initiate a suit against Mortgage Mart Corporation by filing a
complaint. The complaint should include
a. an explanation of the proof to be offered at trial.
b. defenses to any possible counterclaim.
c. a motion for judgment on the pleadings.
d. the facts showing that the court has jurisdiction.
1. Solar Power, Inc., files a suit against Thunder Bay Utility Company and
seeks to examine certain documents in Thunder’s possession. A
legitimate reason for this examination is that the documents contain
a. evidence about the case.
b. private information about Thunder’s operations.
c. public information about energy generation.
d. irrelevant data that can be eliminated from consideration.
1. During the trial phase of Fuel Corporation’s suit against Gas Stations,
Inc., their attorneys engage in voir dire. This is
a. an assessment of the arguments on the issues.
b. a determination of the issues to be argued.
c. litigation of the issues and arguments.
d. the jury selection process.
1. During a trial between Laramie and Mikayla over a sale of allegedly
diseased livestock, Mikayla’s attorney asks questions of the plaintiff’s
witness Nilson. This is
a. a cross-examination.
b. a deposition.
c. a direct examination.
d. an interrogatory.
1. Toppers, Inc., files a suit against Sports Cap Company. Toppers’s
attorney calls Renalda, the first witness, and questions her. This
questioning is
a. cross-examination.
b. direct examination.
c. a rebuttal.
d. a rejoinder.
1. Irma files a civil suit against Jim. To succeed, Irma must prove her
a. beyond a reasonable doubt.
b. by a preponderance of the evidence.
c. by indisputable proof.
d. within an iota of the truth.
1. In Brick ‘n Mortar Corporation’s suit against Online Mall, Inc. (OMI), the
jury returns a verdict in Brick ‘n Mortar’s favor. OMI files a motion
asking the judge to set aside the verdict and begin new proceedings.
This is a motion for
a. a summary judgment.
b. a directed verdict.
c. a new trial.
d. judgment n.o.v.
1. In Chickenpot Cafe’s suit against Dawg Carts, Inc., the jury returns a
verdict in Chickenpot’s favor. Chickenpot will most likely ask the court
to enter
a. a judgment in accordance with the verdict.
b. a judgment n.o.v.
c. a summary judgment.
d. a directed verdict.
1. In Midnight Motel’s suit against Natural Mattress Company, the jury
returns a verdict in Midnight’s favor. Natural files a motion stating that
even if the evidence is viewed in the light most favorable to Midnight,
a reasonable jury should not have found in its favor. This is a motion
a. a summary judgment.
b. a writ of execution.
c. a directed verdict.
d. judgment n.o.v.
1. Stefani files a suit against Thomasina. The document that informs
Thomasina that she is required to answer the complaint is
a. the motion.
b. the complaint.
c. the service of process.
d. the summons.
1. In Phil’s suit against Riley, the court issues a judgment in Riley’s favor.
If the case is appealed to an appropriate court of appeals, the
appellate court will hear
a. all of the evidence.
b. most of the evidence.
c. none of the evidence.
d. select pieces of evidence.
1. MicroWare hosts a Web site that advertises its software products, fea-
tures upgrades and “patches” for its existing software products, and ac-
cepts orders for the products from consumers throughout the world.
Mary, who owns and operates Business Records, Inc,, a small
bookkeeping and payroll business in Colorado, orders from the Web
site a copy of MicroWare’s Office Books software. Office Books is
designed to help accountants and bookkeepers keep accurate business
records. When Office Books is found to have a defect in its calculating
program, MicroWare offers a patch on its Web site to fix the problem.
Mary has already lost several customers because of the miscalculating
defect, however, and files a suit against MicroWare in a Colorado state
court. Can the court exercise jurisdiction over MicroWare? Why or why
1. Worldwide Trucking Corporation files a suit in a state court against XL
Service Company, and wins. XL appeals the court’s decision, asserting
that the evidence presented at trial to support Worldwide’s claim was
such that no reasonable jury could have found for the plaintiff. There-
fore, argues XL, the appellate court should reverse the trial court’s de-
cision. May an appellate court ever reverse a trial court’s findings with
respect to questions of fact?

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