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FINANCE 240 (Business Law) Don Harrington Midterm Helper

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Sources of the Law The Restatement of the Law -Trial lawyers working to Let Trespassers Sue You oAmerican Law Institute’s Third Restatement of Torts imposes new duty of “reasonable care” toward all except “flagrant” trespassers. #1 How Many Do We Need On A Jury?-Justice Requires 12 Angry Men oWilliams v. Florida 1970 court said state legislatures could alter the size of juries and not have 12 but must have 6. #1 Civil Contempt

-No Charge: In Civil-Contempt Cases, Jail Time Can Stretch on for Years

oUsually limited to 18 months but not all states are like this. (federal is 18) oIssued when judge feels that a party has disobeyed an order or has disrupted a proceeding The Criminal v. Civil Proceding

-Casey Anthony: The System Worked

oDifference between criminal v. civil

Criminal: Proof beyond a reasonable doubt. Not a search for truth

Civil: seeks justice for the victim. Need only prove liability by a jority

of the evidence.oMore reading: No Charge: In Cilvil-Contempt Cases, Jail Time Can Stretch On For Years California Exempt Property Law -Property Exempt From Execution oCalifornia Constitution requires Legislature to protect “a certain portion” of a debtor’s property from forced sale in a money judgement. #1 The Anatomy of a Demurr -The Anatomy of a Demurr oA demurrer is a pleading in a lawsuit that objects to or challenges a pleading filed by an opposing party. The word demur means "to object"; a demurrer is the document that makes the objection. Lawyers informally define a demurrer as a defendant saying, "So what?" to the pleading.

Jurisdiction Basis Upon Which A Courts Jurisdiction is Established/Analyzing Cyberspace Jurisdiction -Jurisdiction

oPersonal Jurisdiction: Refers to court’s power over either a person (in

personam) or a subject matter (in rem). There are 2 offshoots #1

General Jurisdiction: Applicable when defendant has either substantial

or continuous and systematic activities within a territory.

Specific Jurisdiction: only suitable if the in-state activity of defendant

has significant amount of connection to the case.oTo exercise personal Jurisdiction over an out-of-state resident, must meet 14 th

amendment’s Due Process Clause. #2 oZippo Sliding Scale See which websites internet presence and activity to determine the applicable jurisdiction. #3 oEffects Test #4 Most suits cases of defamation.

-Cyber Squabbles: Where Do You Sue?

o“Diversity Suit”- between citizens of different states where matter (contract or injury) is greater than $75,000 still have to prove Personal Jurisdiction o“Gotcha” Jurisdiction Served a summons while defendant is visiting forum state #1 oPurposefully cause an injury (defamation etc.) in the state jurisdiction #2 oMinimum Contacts (Zippo Sliding Scale used to help test for min. contacts) Business or person with sufficient contacts with a particular state is jurisdiction.oYes and No Personal Jurisdiction examples listed in Cyber Squabbles as well.oJurisdiction is given if both parties agree to consent.Usually states make you consent if you are about to do business in state.oCyberspace Merchant Sues You?If only contact with out-of-state catalog is a occasional purpose, then that is not enough.oInternationally, it is difficult to enforce judgement. Also, only way to have personal jurisdiction is through minimum contacts oCredit cards over $50 purchase make within home state, the credit companies have a dispute resolution procedure that bypasses litigation and personal jurisdiction problems.More suggestions for E-Commerce in end of Cyber Squabbles.Federal Diversity Jurisdiction -Rennert v. Great Dane Limited Partnership

oDiversity Jursidiction: When federal court hears a civil case when the persons

that are parties are diverse in citizenship (different states or non-u.s. citizens) Framers did not want bias for parties from a state oManufacturer has the duty to design a vehicle that is reasonably safe for the occupants, but owes no duty to those who collide with that vehicle #1 Even if accidents are foreseeable.o“We apply the laws of Illionois as we believe the Illinois Supreme Court would apply” The Long-Arm Statute -Bensusan Restaurant Corp. v. King oHelp define parameters of personal jurisdiction in the Internet Context, specifically passive websites that only advertise local services.oNY long-arm statute do not permit personal jurisdiction over King.Violate due process clause of US constitution if NY did have it Due Prcoess requires a non-resident defendant to purposefully establish minimum contact with the state claiming jurisdiction, such that the suit does not offend “traditional notions of fair play and substantial justice” oCase regards minimum contact and long-arm statute Parties Agreeing to Jurisdiction -Janetter Hunt c. Superior Court of SD oQuestion is if the forum selection clause in the guaranty is valid.oCourts repeatedly refused to find minimum contacts under substantively indistinguishable circumstances. (like only 1 purchase from a state as the only contact) #1 oNo adequate notice of a forum selection clause, then the mutual consent is lacking and no valid content with respect to that clause exists. #2 Pavlovich Revisited -Issue is if a state court can exercise jurisdiction over a non-resident whose only connection with the state is an internet posting on the internet.-Merely asserting that a defendant knew or should have known that his intentional acts would cause harm in the forum state is not enough to establish jurisdiction California Long-Arm Statute -“A court of this state may exercise jurisdiction on any basis not inconsistent with the Constitution of this state or of the US. Minimum contacts is huge.By-Laws & Forum Selection -Allowing Firms to Restrict Suits to Delaware to Change Legal Landscape