Business Law Final Exam Sophia | LATEST UPDATE In which scenario do the different court systems in the U.S. interact properly? A Colorado man is a
... [Show More] 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 __________. 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. 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 [Show Less]