Business 18: Introduction to Business Law (S.

Spencer)
CHAPTER THREE: THE RESOLUTION OF PRIVATE DISPUTES
As you know, the Natue o! Law" has se#ea$ %o&'onents:
Po(u%t ) Le*a$ Ru$es to +e !o$$owe( (Types of law: const, statutes, treaties, etc.)
Po%ess ) Le*a$ Syste& ,n '$a%e (Federal, State, Adin. A!encies, court "ierarc"y)
Pa%t,%e-A''$,%at,on ) .hat a%tua$$y ha''ens (Sc"ools of t"ou!"t, Le!al reason#!)
To(ay /%ha'te 01, .ILL Fo%us on the Po%ess
2: How ae P,#ate D,s'utes eso$#e(3
A: T,a$s ae the &ost #,s,+$e 4 !a&,$,a #eh,%$e !o (,s'ute
sett$e&ent, howe#e, &ost ae /an( shou$( +e1 sett$e( +y
ne*ot,at,on5
2: .hen ne*ot,at,ons !a,$, shou$( one 'o%ee( ,&&e(,ate$y to
the %out syste&3 I! not, what a$tenat,#es ae a#a,$a+$e3
TODA6:
A$tenat,#e D,s'ute Reso$ut,on 7etho(s
State 4 Fe(ea$ Cout Stu%tue
8u,s(,%t,on 4 Venue
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Business 18: Introduction to Business Law (S.Spencer)
ALTERNATIVE DISPUTE RESOLUTION
Advantages over Trials
2u,%ke eso$ut,on o! (,s'ute
Chea'e
(lower cost in time, money $ aggravation)
Less %o&'$,%ate( 'o%e(ua$$y
Re(u%es sta,n on an a$ea(y o#e$oa(e( %out syste&
Re%e,#es $ess 'u+$,%,ty
Use o! (e%,s,on &akes w,th e;'et,se
7oe ea(,$y a(a'ts to %o&'o&,se so$ut,ons" un$,ke t,a$s w-w,nne" 4 $ose"
Fa%,$,tates a %ont,nuat,on o! +us,ness +etween 'at,es a!te sett$e&ent
Potent,a$ D,sa(#anta*es
S$o''y, +,ase( o $aw$ess (e%,s,ons se%on( %$ass" <ust,%e !o o(,nay 'eo'$e
CO77ON FOR7S OF ADR
7e(,at,on
A+,tat,on
Cout Anne;e( A+,tat,on
7,n,=T,a$
Su&&ay 8uy T,a$
Othe:
O&+u(s'eson
P,#ate Pane$s
So&e !o&a$ $e*a$ 'o%e(ues
Ea$y Neuta$ E#a$uat,on
P,#ate 8u(*,n*
Mediation
Fa%,$,tate( +y a neuta$ 0
(
'aty 7e(,ato"
Ro$e o! 7e(,ato:
He$' 'at,es ea%h eso$ut,on
>y %$a,!y,n* aeas o! a*ee&ent 4 (,sa*ee&ent
He$' 'at,es see ea%h othes #,ew'o,nt
Su**est sett$e&ent o't,ons
I! su%%ess!u$, %an esu$t ,n a &e(,at,on a*ee&ent" !o%erned &y contract law
I! unsu%%ess!u$, &ay +e !o$$owe( +y A+,tat,on o %out a%t,on5
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Business 18: Introduction to Business Law (S.Spencer)
Use( ,n a #a,ety o! s,tuat,ons
(la&or, coercial, en%ironental, $ failydisputes)
7ay +e a*ee( to a!te a (,s'ute a,ses o &ay +e 'at o! a %onta%tua$ a*ee&ent5
Arbitration
Su+&,ss,on o! a (,s'ute to a neuta$ 0
(
'aty a+,tato" who ,ssues a $e*a$$y
>INDIN@ (e%,s,on eso$#,n* the (,s'ute5
Usua$$y esu$ts !o& 'at,esA a*ee&ent +e!oe (,s'ute a,ses #,a an a+,tat,on %$ause"
,n a %onta%t5
7ay +e %o&'e$$e( +y statute
Usua$$y $ess !o&a$
Ru$es 4 'o%e(ues an( e%o( kee',n* ty',%a$$y NOT as ,*oous
De%,s,on /%a$$e( an Awa("1 ,s !,$e( w- the %out
8UDICIAL REVIE. o! A+,tat,on 'o%ee(,n* ,s LI7ITED5 Poss,+$e *oun(s to
o#etun:
95
?5
05
COURT ANNEXED ARBITRATION
Ceta,n %,#,$ $awsu,ts ae (,#ete( ,nto a+,tat,on5
O!ten &an(atoy ) o(ee( +y the <u(*e
O't,ona$ ,n so&e <u,s(,%t,ons
Los,n* 'aty st,$$ has ,*ht to a <uy t,a$
MINITRIAL
In!o&a$, a++e#,ate( ',#ate t,a$
A,& ,s to 'o&ote sett$e&ent o! (,s'utes
No&a$$y a,ses out o! a ',#ate a*ee&ent
Counse$ 'esent %ase to 'ane$ o! sen,o &*&t !o& ea%h s,(e
Neuta$ a(#,so &ay +e 'esent
7ana*es atte&'t to ne*ot,ate sett$e&ent a!te 'esentat,ons
SUMMAR! "UR! TRIAL
A++e#,ate(, non='u+$,% &o%k <uy t,a$ that (oes NOT +,n( the 'at,es
I! no sett$e&ent ea%he(, st,$$ ent,t$e( to a e*u$a %out t,a$
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Standing To S#e
o "#sti$iable Controvers%
o Su!!,%,ent stake /Legall% &rote$ted ' tangible interest1 ,n &atte to <ust,!y seek,n*
e$,e! thou*h %out syste&
o A$t#al &art% ha&e( &ust +,n* su,t
E;%e't,on:
"URISDICTION
8u,s (,%t,on C 't"e power to spea( t"e law)
8" ,s the autho,ty o! a %out to hea an( (ete&,ne (,s'utes an( ha#e ,ts (e%,s,on
+,n(,n* on the 'at,es5
Two ReDu,e&ents:
95 8u,s(,%t,on o#e the 'at,es ,n (,s'ute
?5 8u,s(,%t,on o#e the su+<e%t &atte
8 o#e the 'at,es &ay +e sat,s!,e( ,! the 'aty ,s a es,(ent o! the state, %on(u%ts
a%t,#,t,es w,th,n the stateE, o ,s %o#ee( +y a states $on*=a& statute5
E 7ust ha#e 'sufficient iniu contacts)
8 o#e the 'at,es &ay +e o+ta,ne( +y e;e%,s,n* one o! the !o$$ow,n*:
In 'esona&
In e&
2uas, ,n e&
State Lon*=a& statute
In Pesona& 8 ,s +ase( on the:
Residen$e
lo$ation o
a$tivities o! the (e!en(ant
Or $onsent o( D
In Re& 8 ,s +ase( on the:
Presen$e o( &ro&ert% w,th,n the state
Pro&ert% is s#b)e$t o( dis&#te
2uas, In Re& ,s +ase( on the:
Presen$e o( &ro&ert% w,th,n the state
Pro&ert% is NOT s#b)e$t o( dis&#te +ut ,s se,Fe(
State Lon*=A& Statutes
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Business 18: Introduction to Business Law (S.Spencer)
Po#,(e state %outs ,n 'esona& <u,s(,%t,on o#e %eta,n out=o!=state (e!en(ants5
How (o Non=es,(ent ,n(,#,(ua$s 4 +us,nesses +-% su+<e%t to 83
SUB"ECT MATTER "URISDICTION
o A %outAs 'owe to (e%,(e the T*+, o! (,s'ute ,n#o$#e( ,n the %ase5
Co#rts o( *eneral "#risdi$tion
o -ay "ear cases in%ol%in! a variety of subjects.
Co#rts o( Li+ited "#risdi$tion
o Typically address minor criminal cases and civil disputes in%ol%in! small
amounts of money or specialized matters.
o ,.!. pro&ate court, ta. court, /u%enile court atters, sall clais court and
traffic court.
8u,s(,%t,on &ay +e $,&,te( ,n se#ea$ ways:
95 L,&,te( +y su+<e%t &atte ) %out %an on$y hea %ases ,n#o$#,n* %eta,n ty'es o!
%onto#es,es5
?5 L,&,te( +y a&ount o! (a&a*es +e,n* sou*ht /o 'ena$ty to +e assesse(1
05 L,&,te( +y ty'e o! %,&e %o&&,tte(
B5 L,&,te( *eo*a'h,%a$$y /A$$ %outs1
Othe 8u,s(,%t,ona$ ,ssues:
O,*,na$ #s5 A''e$$ate 8
Con%uent #s5 E;%$us,#e 8
Fe(ea$ 8u,s(,%t,on
VENUE
A,ses a!te <u,s(,%t,on ,s esta+$,she(
A %out has #enue ,! ,t ,s a territoriall% (air an( $onvenient (or#+ ,n wh,%h to hea
the %ase
Re,#ire+ents t%&i$all% set b% state stat#te
E*5 7ay state %ounty ,n wh,%h %ase shou$( +e t,e(
C-ange o( Ven#e
7ay +e o+ta,ne( ,! <ust,%e eDu,es
E5*5 I! !a, t,a$ ,&'oss,+$e w-n a 'at,%u$a %ounty /+eterson1
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STATE COURT STRUCTURE
./ In(erior Co#rts
o Fun%t,ons:
i/ F,n( e$e#ant !a%ts
ii/ ID a''o',ate u$e o! $aw 4
iii/ Co&+,ne !a%ts 4 $aw to ea%h a (e%,s,on
o Couts o! $,&,te( <u,s(,%t,on
o NOT %outs o! e%o( (so no appeal, instead new trial in court of record 0
'trial de no%o))
o ,.!. Traffic court, /ustice of t"e peace, and sall clais courts
0/ Trial Co#rts
o Fun%t,ons: SA7E AS A>OVE
o D,!!een%es:
i/ Couts o! general )#risdi$tion
,.ception: S'e%,a$ %outs o! $,&,te( <u,s(,%t,on &ay +e esta+$,she(
(e.!. pro&ate, conciliation, /u%enile)
ii/ Co#rts o( re$ord
iii/ "#dge +#st be a la1%er 4 <u,es ae 'o#,(e( !o
2/ A&&ellate Co#rts
@enea$$y de$ide onl% legal ,#estions
o 7ust a%%e't t,a$ %tAs !,n(,n*s o! !a%t unless ,t *oes a*a,nst a$$ o! the
e#,(en%e
o 8o+ ,s to e#,ew t,a$ %t 'o%ee(,n*s 4 %oe%t $e*a$ eos &a(e +y t,a$
<u(*e
o 7ay hea a''ea$s !o& state a(&,n5 a*en%y (e%,s,ons
o So&e states ha#e two $e#e$s o! a''e$$ate %outs
o Th,s !,st e#,ew *enea$$y +y ,*ht
3/ 0
nd
Level o( A&&eal4 State 5S#&re+e Co#rt6
H,*hest state %out
De%,s,ons on Duest,ons o! state $aw ae !,na$ 4 +,n(,n* on a$$ %outs
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Ceta,n ty'es o! %ases (e.!. deat" penalty) &ay +e a''ea$e( (,e%t$y to the stateAs
h,*hest %out
Th,s e#,ew *enea$$y at %ts (,s%et,on
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FEDERAL COURT S6STE7
Article III of 1onstitution states <u(,%,a$ 'owe o! U5S5 sha$$ +e #este( ,n one
Su'e&e Cout an( su%h $owe %outs as Con*ess &ay esta+$,sh5
./ U/S/ Distri$t Co#rts
EDu,#a$ent o! state t,a$ %out o! *enea$ <u,s(,%t,on
Ha#e o,*,na$ <u,s(,%t,on ,n !e(ea$ &attes so !e(ea$ %ases ty',%a$$y
o,*,nate hee5
At $east one (,st,%t %out ,n e#ey state5
0/ U/S/ Cir$#it Co#rts o( A&&eal
No !a%t=!,n(,n* Revie1s legal $on$l#sions o( lo1er (ederal $o#rts 4 heas
a''ea$s !o& &any !e(ea$ a(&,n5 a*en%,es
90 U5S5 C,%u,t Couts o! A''ea$
9? hea a''ea$s !o& !e(ea$ (,st,%t %outs $o%ate( w,th,n the, es'e%t,#e
%,%u,ts /*eo*a'h,% e*,ons1
De%,s,ons ae +,n(,n* on a$$ %outs w,th,n the %,%u,tAs <u,s(,%t,on5
The 90th /The Fe(ea$ C,%u,t1 has nat,ona$ <u,s(,%t,on o#e %eta,n ty'es o!
%ases
2/ U/S/ S#&re+e Co#rt
H,*hest Cout o! the Lan(
Has o,*,na$ <u,s5 ,n so&e %ases
P,n%,'a$ !un%t,on 4 wok ,s as an a''e$$ate %out e#,ew,n* (e%,s,ons o! Fe(ea$
Couts o! A''ea$ an( so&et,&es (e%,s,ons o! h,*hest state %out5
Ro#tes to t-e S#&re+e Co#rt4
95 A''ea$ +y R,*ht (Alost copletely eliinated &y 1on!ress in 1288 le!islation)
?5 D,s%et,onay 7rit o( Certiorari
I! B <ust,%es #ote to hea the %ase, the %out *ants the w,t ,! e,the o! the !o$$ow,n*
a''$,es:
91 1-en t-ere is a (ederal ,#estion o( s#bstantial i+&ortan$e OR
?1 1-en t-ere is a $on(li$t in t-e de$isions o( t-e U/S/ Cir$#it Co#rts o( A&&eal5
8o1 is denial inter&reted9
NOT a (e%,s,on on the &e,ts
DOES NOT ,n(,%ate a*ee&ent w,th $owe %outAs (e%,s,on
HAS NO VALUE as 'e%e(ent
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::Si+&l% +eans t-at t-e de$ision o( t-e lo1er $o#rt re+ains t-e la1 1it-in t-at $o#rt;s )#risdi$tion/
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