Chapter 2 - Courts and Alternative Dispute Resolution

Question 1

Alternative Dispute Resolution (ADR)

Answer 1

The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation, mediation, and arbitration are forms of ADR

Question 2

Arbitration

Answer 2

The settling of a dispute by submitting it to a disinterested third party (other than a court), who renders a decision. The decision may or may not be legally binding.

Question 3

Arbitration Clause

Answer 3

A clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court.

Question 4

Award

Answer 4

In the context of litigation, the amount of money awarded to a plaintiff in a civil lawsuit as damages. In the context of arbitration, the arbitrator’s decision.

Question 5

Bankruptcy Court

Answer 5

A federal court of limited jurisdiction that handles only bankruptcy proceedings.

Question 6

Concurrent jurisdiction

Answer 6

Jurisdiction that exists when two different courts have the power to hear a case. For example, some cases can be heard in either a federal or a state court.

Question 7

Diversity of Citizenship

Answer 7

Under Article III, Section 2, of the Constitution, a basis for federal court jurisdiction over a lawsuit between (1) citizens of different states, (2) a foreign country and citizens of a state or of different states, or (3) citizens of a state and citizens or subjects of a foreign country. The amount in controversy must be more than $75,000 before a federal court can take jurisdiction in such cases.

Question 8

Early Neutral Case Evaluation

Answer 8

A form of alternative dispute resolution in which a neutral third party evaluates the strengths and weakness of the disputing parties’ positions. The evaluator’s opinion forms the basis for negotiating a settlement.

Question 9

Exclusive Jurisdiction

Answer 9

Jurisdiction that exists when a case can be heard only in a particular court or type of court, such as a federal court or a state court.

Question 10

Federal Question

Answer 10

A question that pertains to the U.S. Constitution, acts of Congress, or treaties. A federal question provides a basis for federal jurisdiction.

Question 11

In Personam Jurisdiction

Answer 11

Court jurisdiction over the “person” involved in a legal action; personal jurisdiction.

Question 12

In Rem Jurisdiction

Answer 12

Court jurisdiction over a defendant’s property.

Question 13

Judicial Review

Answer 13

The process by which courts decide on the constitutionality of legislative enactments and actions of the executive branch.

Question 14

Jurisdiciton

Answer 14

The authority of a court to hear a case and decide a specific action.

Question 15

Litigation

Answer 15

The process of resolving a dispute through the court system.

Question 16

Long Arm Statute

Answer 16

A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have “minimum contacts” with that state for the statute to apply.

Question 17

Mediation

Answer 17

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.

Question 18

Mini-Trial

Answer 18

A private proceeding in which each party to a dispute argues its position before the other side. A neutral third party may be present and act as an adviser if the parties fail to reach an agreement.

Question 19

Negotiation

Answer 19

In regard to dispute settlement, a process in which parties attempt to settle their dispute without going to court, with or without attorneys to represent them. In regard to negotiable instruments, the transfer of an instrument in such a way that the transferee (the person to whom the instrument is transferred) becomes a holder.

Question 20

Online Dispute Resolution (ODR)

Answer 20

The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.

Question 21

Probate Court

Answer 21

A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person’s estate.

Question 22

Question of Fact

Answer 22

In a lawsuit, an issue involving a factual dispute. A question of fact can be decided by a judge or a jury.

Question 23

Question of Law

Answer 23

In a lawsuit, an issue involving the application of interpretation of a law. Only a judge, and not a jury, can decide a question of law.

Question 24

Rule of Four

Answer 24

A rule of the United States Supreme Court under which the Court will not issue a with or certiorari unless at least four justices agree to do so.

Question 25

Small Claims Court

Answer 25

Special courts in which parties may litigate small claims (usually, calims involving $2,500 or less). Attorneys are not required in small claims courts and in many states are nor allowed to represent the parties.

Question 26

Standing to Sue

Answer 26

The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.

Question 27

Summary Jury Trial

Answer 27

A method of settling disputes in which a trial is held, but the jury’s verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately follow the summary jury trial.

Question 28

Venue

Answer 28

The geographical district in which an action is tried and from which the jury is selected.

Question 29

Writ of Certiorari

Answer 29

A writ from a higher court asking the lower court for the record of a case.