BUSINESS LAW EXAM 1 (CH. 1, 4, 5) (15TH EDITION CLARKSON, MILLER) QUESTIONS WITH VERIFIED
ANSWERS 2025/ 2026
jusrisdictionq-qCORRECTqANSWERStheqauthorityqofqaqcourtqtoqhearqandqdecideqaqspecificqaction
judicialqreviewq-
qCORRECTqANSWERSjudicialqbranchq(court)qcanqdeclareqaqstatuteqofqbeingqunconstitutional
whoqisqtheqpowerqofqjudicialqreviewqexercisedqby?q-
qCORRECTqANSWERSbothqtheqfederalqandqstateqcourts.
plantiffq-qCORRECTqANSWERSaqpersonqwhoqbringsqaqcaseqagainstqanotherqinqaqcourtqofqlaw.
defendantq-qCORRECTqANSWERStheqpartyqbeingqsued,qaccusedqpersonqinqcriminalqproceedings
whatqareqtheqtypesqofqjurisdiction?q-
qCORRECTqANSWERSinqpersonam,qinqrem,qsubjectqmatter,qoriginalqv.qappellate
inqpersonamq(orqpersonal)qjurisdictionq-qCORRECTqANSWERSplaintiffqv.qdefendantq
jurisdictionqoverqanyqpersonqorqbusinessqinvolvedqinqaqlegalqaction.qInqPersonamqjurisdictionqisqdetermine
dqbyqtheqgeographicqareaqofqtheqpersonqorqbusiness.q(ex.qsomeoneqinqLAqcanqhaveqjurisdictionqoverqsome
oneqinqSanqFran.)
InqRemqJurisdictionq(orq"jurisdictionqoverqtheqthing")q-qCORRECTqANSWERS-basedqonqlocation
-
courtqjurisdictionqoverqaqdefendant'sqproperty.qinqremqjurisdictionqisqdeterminedqbyqtheqgeographicqlocati
onqofqtheqpropertyqdispute`
long-armqstatutesqandqminimumqcontactsq-
qCORRECTqANSWERSallowsqcourtqtoqhaveqaqlongqarmqandqhaveqjurisdictionqoverqsomeoneqinqaqdifferentqst
ate.q
minimumqcontacts-qhaveqtheyqbeenqthere?
corporateqcontactsq-
qCORRECTqANSWERScorporationsqnormallyqareqsubjectqtoqpersonalqjurisdictionqinqtheqstateqinqwhichqtheyq
areqincorporated,qhaveqtheirqpersonalqoffice,qand/orqareqdoingqbusiness.qcourtsqapplyqtheqminimumqcont
actsqtestqtoqdetermineqofqtheyqcanqexerciseqjurisdictionqoverqout-of-stateqcorporations.
subject-matterq-
qCORRECTqANSWERSyouqhaveqtoqfileqyourqcaseqinnqtheqspecial/typeqofqcourtqrelatedqtoqyourqcase.
, courtsqofqgeneralqjurisdictionq-
qCORRECTqANSWERSsuchqasqaqstateqtrialqcourtqorqaqfederalqdistrictqcourtqcanqdecideqcasesqinvolvingqaqbro
adqarrayqofqissues
courtsqofqlimitedqjurisdictionq-
qCORRECTqANSWERSsuchqasqprobateqorqbankruptcyqcourtsqcanqhearqonlyqspecificqtypesqofqcases
courtqofqoriginalqjurisdictionq-qCORRECTqANSWERStrialqcourt,qwhereqcasesqoriginateqcrossqexaminations.
appellateqjurisdictionq-
qCORRECTqANSWERSaqdifferentqcourtqhouse,qnoqjury,qnoqnewqevidence,qthreeqjudges
jurisdictionqofqtheqfederalqcourtsq-qCORRECTqANSWERSlimited.qhaveqsubjectqmatterqinqtwoqsituations
federalqquestionq-
qCORRECTqANSWERSaqquestionqpertainingqfederalqlaw,qU.S.qconts.,qactsqofqCongress,qorqtreaties
diversityqofqcitizenshipq-
qCORRECTqANSWERSmustqexceedq$75,000qbeforeqaqfed.qcourtqcanqtakeqjurisdiction,qaqlawsuitqbtwnq(1)qcit
izensqofqdiff.qstates,q(2)qaqforeignqcountryqandqcitizensqofqaqstateqorqdiffqstates,q(3)qcitizensqofqaqstateqandqc
itizensqorqsubjectsqofqaqforeignqcountry.
exclusiveqjurisdictionq-qCORRECTqANSWERScanqonlyqbeqheardqinqaqparticularqcourtqorqtypeqofqcourt.
federalqcourtqcases:q-
qCORRECTqANSWERSfederalqcrimes,qbankruptcy,qmostqpatentqandqcopyrightqclaims,qsuitsqagainstqtheqUS,q
andqsomeqareasqofqadmiraltyqlaw
stateqcourtsq-qCORRECTqANSWERSdivorceqandqadoptionqcases
concurrentqjurisdictionq-
qCORRECTqANSWERSoneqorqmoreqcourtqcanqhearqtheqcase.q(whenqtheqfederalqandqstateqcourtqhaveqtheqpo
werqtoqhearqaqcase)
jurisdictionqinqcyberspaceq-
qCORRECTqANSWERSifqtheqdefendant'sqonlyqcontactqwithqtheqstateqareqthroughqaqwebsite,qitqcanqbeqdiffic
ultqtoqdetermineqwhetherqtheseqcontactqareqsufficientqforqaqcourtqtoqexerciseqjurisdiction.
"sliding-scale"qstandardq-
qCORRECTqANSWERSthreeqtypesqofqinternetqbusinessqcontactsqandqoutlinesqtheqfollowingqrulesqforqjurisdi
ction:q
1.qwhenqtheqdefendantqconductsqsubstantialqbusinessqoverqtheqinternet,qjurisdictionqisqproper.q
ANSWERS 2025/ 2026
jusrisdictionq-qCORRECTqANSWERStheqauthorityqofqaqcourtqtoqhearqandqdecideqaqspecificqaction
judicialqreviewq-
qCORRECTqANSWERSjudicialqbranchq(court)qcanqdeclareqaqstatuteqofqbeingqunconstitutional
whoqisqtheqpowerqofqjudicialqreviewqexercisedqby?q-
qCORRECTqANSWERSbothqtheqfederalqandqstateqcourts.
plantiffq-qCORRECTqANSWERSaqpersonqwhoqbringsqaqcaseqagainstqanotherqinqaqcourtqofqlaw.
defendantq-qCORRECTqANSWERStheqpartyqbeingqsued,qaccusedqpersonqinqcriminalqproceedings
whatqareqtheqtypesqofqjurisdiction?q-
qCORRECTqANSWERSinqpersonam,qinqrem,qsubjectqmatter,qoriginalqv.qappellate
inqpersonamq(orqpersonal)qjurisdictionq-qCORRECTqANSWERSplaintiffqv.qdefendantq
jurisdictionqoverqanyqpersonqorqbusinessqinvolvedqinqaqlegalqaction.qInqPersonamqjurisdictionqisqdetermine
dqbyqtheqgeographicqareaqofqtheqpersonqorqbusiness.q(ex.qsomeoneqinqLAqcanqhaveqjurisdictionqoverqsome
oneqinqSanqFran.)
InqRemqJurisdictionq(orq"jurisdictionqoverqtheqthing")q-qCORRECTqANSWERS-basedqonqlocation
-
courtqjurisdictionqoverqaqdefendant'sqproperty.qinqremqjurisdictionqisqdeterminedqbyqtheqgeographicqlocati
onqofqtheqpropertyqdispute`
long-armqstatutesqandqminimumqcontactsq-
qCORRECTqANSWERSallowsqcourtqtoqhaveqaqlongqarmqandqhaveqjurisdictionqoverqsomeoneqinqaqdifferentqst
ate.q
minimumqcontacts-qhaveqtheyqbeenqthere?
corporateqcontactsq-
qCORRECTqANSWERScorporationsqnormallyqareqsubjectqtoqpersonalqjurisdictionqinqtheqstateqinqwhichqtheyq
areqincorporated,qhaveqtheirqpersonalqoffice,qand/orqareqdoingqbusiness.qcourtsqapplyqtheqminimumqcont
actsqtestqtoqdetermineqofqtheyqcanqexerciseqjurisdictionqoverqout-of-stateqcorporations.
subject-matterq-
qCORRECTqANSWERSyouqhaveqtoqfileqyourqcaseqinnqtheqspecial/typeqofqcourtqrelatedqtoqyourqcase.
, courtsqofqgeneralqjurisdictionq-
qCORRECTqANSWERSsuchqasqaqstateqtrialqcourtqorqaqfederalqdistrictqcourtqcanqdecideqcasesqinvolvingqaqbro
adqarrayqofqissues
courtsqofqlimitedqjurisdictionq-
qCORRECTqANSWERSsuchqasqprobateqorqbankruptcyqcourtsqcanqhearqonlyqspecificqtypesqofqcases
courtqofqoriginalqjurisdictionq-qCORRECTqANSWERStrialqcourt,qwhereqcasesqoriginateqcrossqexaminations.
appellateqjurisdictionq-
qCORRECTqANSWERSaqdifferentqcourtqhouse,qnoqjury,qnoqnewqevidence,qthreeqjudges
jurisdictionqofqtheqfederalqcourtsq-qCORRECTqANSWERSlimited.qhaveqsubjectqmatterqinqtwoqsituations
federalqquestionq-
qCORRECTqANSWERSaqquestionqpertainingqfederalqlaw,qU.S.qconts.,qactsqofqCongress,qorqtreaties
diversityqofqcitizenshipq-
qCORRECTqANSWERSmustqexceedq$75,000qbeforeqaqfed.qcourtqcanqtakeqjurisdiction,qaqlawsuitqbtwnq(1)qcit
izensqofqdiff.qstates,q(2)qaqforeignqcountryqandqcitizensqofqaqstateqorqdiffqstates,q(3)qcitizensqofqaqstateqandqc
itizensqorqsubjectsqofqaqforeignqcountry.
exclusiveqjurisdictionq-qCORRECTqANSWERScanqonlyqbeqheardqinqaqparticularqcourtqorqtypeqofqcourt.
federalqcourtqcases:q-
qCORRECTqANSWERSfederalqcrimes,qbankruptcy,qmostqpatentqandqcopyrightqclaims,qsuitsqagainstqtheqUS,q
andqsomeqareasqofqadmiraltyqlaw
stateqcourtsq-qCORRECTqANSWERSdivorceqandqadoptionqcases
concurrentqjurisdictionq-
qCORRECTqANSWERSoneqorqmoreqcourtqcanqhearqtheqcase.q(whenqtheqfederalqandqstateqcourtqhaveqtheqpo
werqtoqhearqaqcase)
jurisdictionqinqcyberspaceq-
qCORRECTqANSWERSifqtheqdefendant'sqonlyqcontactqwithqtheqstateqareqthroughqaqwebsite,qitqcanqbeqdiffic
ultqtoqdetermineqwhetherqtheseqcontactqareqsufficientqforqaqcourtqtoqexerciseqjurisdiction.
"sliding-scale"qstandardq-
qCORRECTqANSWERSthreeqtypesqofqinternetqbusinessqcontactsqandqoutlinesqtheqfollowingqrulesqforqjurisdi
ction:q
1.qwhenqtheqdefendantqconductsqsubstantialqbusinessqoverqtheqinternet,qjurisdictionqisqproper.q