1

In which scenario do the different court systems in the U.S. interact properly?



A Colorado man is a defendant in a personal injury lawsuit for an incident that occurred in

New Mexico when he was under the influence of marijuana. When hearing the case, the New

Mexico judge applies the laws of Colorado, where marijuana is legal, rather than New

Mexico law, which criminalizes it.



A New Jersey resident is sued by an Iowa resident. After a trial in which the New Jersey

resident vigorously defends himself, the Iowa state court finds in favor of the defendant. The

Iowa resident then files the same claim in a New Jersey state court, which dismisses the case.



A convict on death row in Texas sues, claiming that the death penalty violates the prohibition

in the Constitution of cruel and unusual punishment. The federal courts refuse to hear the

case, because the complaint includes questions of Texas state law.



A West Virginia woman was driving across the country on vacation and caused a traffic

accident in Nebraska that resulted in a personal injury tort claim. The case is tried in

Nebraska, but the state court judge applies West Virginia law, since that's where the defendant

is from.

CONCEPT

The Courts and the Legal Process

2

Compared to traditional litigation, arbitration and mediation are both __________.



quicker and more cost-effective



rarely used as forms of dispute resolution



more formal and complex



not favored or supported by courts

CONCEPT

Alternative Dispute Resolution

3

If a breach of contract case is filed in federal court, the court __________.



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has no subject matter jurisdiction, but can hear the case at its own discretion



has subject matter jurisdiction if the claim is for less than $75,000 and no plaintiff lives in the

same state as any defendant



has no subject matter jurisdiction and cannot hear the case



has subject matter jurisdiction if the claim is for more than $75,000 and no plaintiff lives in

the same state as any defendant

CONCEPT

Subject Matter Jurisdiction

4

Select the true statement about statutory law.



Congress may enact statutory law in any area it so chooses.



Statutes at the state level are binding on all states.



Statutes are formed by democratically elected legislative bodies, subject to a system of

checks and balances.



At the federal level, the President has no power whatsoever over the creation of statutory law.

CONCEPT

Legislation and Other Sources of Law

5

Which level of state court would reverse the decision of a lower court for procedural

missteps?



District court



General jurisdiction court



Limited jurisdiction court



Intermediate appellate court

CONCEPT

State Courts in the U.S.

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6

Select the true statement about primary sources of law in the U.S.



Public law governs the citizenry, but not the lawmakers themselves.



Substantive laws are necessary to determine how procedural laws will be enforced.



Procedural laws govern the rights and obligations of people.



A contract between two parties is an example of private law.

CONCEPT

Origins of Law

7

ABC Corporation is one of the largest energy companies in the United States, with over $50

million in publicly traded shares. The corporation's unusual accounting practices have

disguised the fact that the company has accumulated significant losses over the past five

years, making it appear far more profitable than it is. The CEO of ABC Corporation has

decided to continue misleading investors by hiding its mounting debt in order to support the

company's current market valuation.

How would a deontologist evaluate this decision?



ABC Corporation is acting unethically because it is not striving for truthfulness or highmindedness.



ABC Corporation is acting unethically because the results of its dishonesty are likely to be

negative for its employees, for its shareholders, and for society as a whole.



ABC Corporation is acting unethically because it sees the investors' interests as unequal to

the interests of the CEO and the corporation.



ABC Corporation is acting unethically because it has certain rights as a corporation, and

therefore has a corresponding duty to consider the public good.

CONCEPT

Major Ethical Perspectives

8

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The CEO of a multinational retail corporation has decided to raise the minimum wage for its

U.S. employees to three times the current federal minimum wage. The CEO explains that the

company needs to provide its employees a living wage, regardless of what the law requires.

According to Milton Friedman, did the corporation fulfill its duty?



No, because the CEO's salary is still hundreds of times what the corporation's employees will

be paid.



Yes, because employees will now be able to afford to purchase more of the company's

products.



No, because the wage hike will drastically increase the corporation's liabilities and likely

harm its stock price.



Yes, because the corporation is going beyond what the government requires it to do, in order

to advance the public good.

CONCEPT

Corporate Governance

9

Select the example where the court has established personal jurisdiction over the

defendant.



Aisha, a resident of New York, is visited by a process officer at her workplace in New York

City and delivered a summons to appear in court in Maryland. The lawsuit against her relates

to property damage that occurred in a home she rented in New Jersey, which is owned by a

woman from Maryland.



Miguel is being sued by an acquaintance of his over unpaid debts. Both Miguel and the

plaintiff are residents of Colorado. Miguel has not been personally visited by a process server

with a summons to appear in court, but he did receive one in the mail at his home.



Frank, an accountant, is suing a client for unpaid bills. The client is located in Mississippi,

and Frank lives and works in Virginia. Frank initiates his lawsuit in his home state, because

he knows many of the state judges.



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