Business Law- Chapter 2

Front 1

Alternative Dispute Resolution (ADR)

Back 1

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

Front 2

American Arbitration Association (AAA)

Back 2

The major organization offering arbitration services in the United States.

Front 3

Arbitration

Back 3

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.

Front 4

Arbitration Clause

Back 4

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.

Front 5

Award

Back 5

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.

Front 6

Bankruptcy Court

Back 6

A federal court of limited jursdiction that handles only bankruptcy proceedings. Bankruptcy proceedings are governed by federal bankruptcy law.

Front 7

Concurrent Jurisdiction

Back 7

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 state court.

Front 8

Diversity of Citizenship

Back 8

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 coutnry and citizens of a state or of different states, or (3) citizens of a state or subjects of a foreign country. The amount must be more than $75,000 before federal court can take jurisdiction in such cases.

Front 9

Early Neutral Case Evaluation

Back 9

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

Front 10

Exclusive Jurisdiction

Back 10

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

Front 11

Federal Question

Back 11

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

Front 12

In Personam Jurisdiction

Back 12

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

Front 13

In rem Jurisdiction

Back 13

Court jurisdiction over a defendant's property.

Front 14

Judicial Review

Back 14

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

Front 15

Jurisdiction

Back 15

the authority of a court to hear and decide a specific action.

Front 16

Justiciable Controversy

Back 16

A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.

Front 17

Litigation

Back 17

The processs of resolving a dispute through the court system.

Front 18

Long Arm Statute

Back 18

A state statute that permist a state to obtain personal jurisdiction over nonresident defendants. A defendant must have "minimum contacts" with that state for statutes to apply.

Front 19

Mediation

Back 19

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 suggest ways in which the parties can resolve their dispute.

Front 20

Mini-trial

Back 20

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

Front 21

Negotiation

Back 21

(1) 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. (2) In regard to instruments, the transfer of an instrument in such a way that the transferee (the person to whom the instrument is transferred) becomes a holder.

Front 22

Online Dispute Resolution (ODR)

Back 22

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

Front 23

Probate Court

Back 23

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

Front 24

Question of Fact

Back 24

In a lawsuit, an issue involving a factual dispute that can only be decided by a judge (or, in a jury trial, a jury).

Front 25

Question of Law

Back 25

In a lawsuit, an issue involving the application or interpretation of a law; therefore, the judge, and not the jury, decides the issue.

Front 26

Rule of Four

Back 26

A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.

Front 27

Small Claims Court

Back 27

Special courts in which parties may litigate small claims (usually, claims involving $2,500 or less). Attorneys are not required in small claims courts, and in many states attorneys are not allowed to represent the parties.

Front 28

Standing to Sue

Back 28

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

Front 29

Summary Jury Trial (SJT)

Back 29

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.

Front 30

Venue

Back 30

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

Front 31

Writ of Certiorari

Back 31

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