Ch 4

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1
Civil Litigation is
A dispute resolution process where parties and their attorneys argue their positions in a court of law
2
The term “litigation” includes
Trial and pretrial events
3
Who should be involved in planning how to resolve disputes in a business?
Legal counsel and business managers
4
Arbitration is a form of
Nonjudicial dispute resolution
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When parties argue their positions on a business controversy in court, it is called
Civil litigation
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Litigation includes a broad range of events that lead up to a
Trial
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Dispute _____ is an important part of business strategy that requires a cost-benefit analysis.
Resolution
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When a dispute arises, one party may make an informal ________ to the other party outlining the issue and requesting action.
Demand
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Who typically helps business owners resolve disputes?
Attorneys
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Why do pre-litigation negotiations often fail?
The parties are antagonistic or the issues are complex
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What are common dispute resolution methods in the U.S.?
Informal settlement, arbitration, and lawsuits
12
Standing to sue means the party bringing the case must have
Suffered harm that is direct, concrete, and individualized
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What law establishes a deadline for filing a lawsuit?
Statute of limitations
14
Before filing a lawsuit, parties often engage in
Demand and settlement negotiations
15
The party who initiates a civil lawsuit is the
Plaintiff
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Pre-litigation negotiations often fail when the parties are
Hostile toward each other
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The party being sued in a civil lawsuit is called the
Defendant
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To bring a lawsuit, the plaintiff must have
Standing, meaning a direct injury has occurred
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A lawsuit officially begins when the plaintiff files a
Complaint
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If the statute of limitations is missed, what happens?
The lawsuit is permanently barred
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What document formally notifies the defendant that a lawsuit has been filed?
Summons
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A defendant responds to the complaint by filing an
Answer
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If a defendant fails to respond to a lawsuit, a ______ judgment is issued, and they automatically lose.
Default
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In some cases, such as divorce proceedings, the defendant is called the
Respondent
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If a defendant believes the plaintiff has also caused damages, they may file a
Counterclaim
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A cross-claim is filed when the defendant
Believes a third party is responsible for the damages
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A party requests court action by filing a
Motion
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The defendant’s formal response to each paragraph of the complaint is in the
Answer
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During the pretrial phase, parties may file a motion to compel
Discovery
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What process allows parties to exchange evidence before trial?
Discovery
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Relevant evidence must be produced during
Discovery
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An attorney’s work product is ______ if it cannot be obtained otherwise without undue hardship.
Discoverable
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A sworn testimony given before trial is called a
Deposition
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A motion to dismiss due to failure to state a valid claim occurs in the
Pre-trial stage
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What is a court order compelling testimony or evidence production?
Subpoena
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What process ensures an orderly exchange of evidence?
Discovery
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Written questions sent to the opposing party during discovery are called
Interrogatories
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What type of evidence can be withheld in discovery?
Privileged or irrelevant evidence
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Statements sent to determine which facts are disputed and which are agreed upon are called
Requests for admission
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One major limit on discoverable information is
Attorney work product
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Requests to obtain documents, emails, or other materials during discovery are called
Requests for production
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Before trial, a judge meets with both parties in a
Pretrial conference
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What happens if all other dispute resolution methods fail?
The case goes to trial
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The finder of law in a trial is the
Judge
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The finder of fact in a jury trial is the
Jury/juror
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Testimony given under oath before trial may be used as evidence and is called a
Deposition
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A trial without a jury, where the judge decides both law and fact, is a
Bench trial
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To obtain specific evidence like documents or emails, a party files a
Request for production
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The first step in a trial is selecting the
Jury
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A judge’s role in a pretrial conference includes
Encouraging settlement and addressing outstanding motions
51
Voir dire is the process of
Questioning potential jurors to determine bias
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During ______ _______, attorneys present their case theories to the jury.
Opening statements
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A witness is first questioned by the attorney who called them during
Direct examination
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Cross-examination is limited to matters raised during
Direct examination
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Attorneys persuade the jury in their final remarks through
Closing arguments
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When the judge ______ the jury, they provide instructions on how to decide the case.
Charges
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Jurors meet privately to review evidence and reach a verdict during
Deliberations
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A witness being questioned by opposing counsel is undergoing
Cross-examination
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After deliberation, the jury delivers a
Verdict
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The standard of proof in civil trials is
Preponderance of evidence
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The final decision of a jury is called the
Verdict
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When a jury cannot reach a decision, it is called a
Hung jury
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To contest a flawed verdict, the losing party may file a
Post-trial motion
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Courts that review trial court decisions for errors are called
Appellate courts
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A prevailing party may have difficulty collecting a judgment if the losing party is
Insolvent or bankrupt
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Reaching an agreement outside the court system is called
Alternative dispute resolution (ADR)
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Advantages of ADR over litigation include
Lower cost and faster resolution
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Informal ADR may result in
A settlement agreement or contract revision
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To succeed in an appeal, the losing party must prove
A prejudicial error occurred
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Common ADR methods include
Mediation, arbitration, and expert evaluation
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What could prevent a winning party from collecting a judgment?
The losing party’s insolvency or bankruptcy
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Contracts often include ADR clauses related to
Employment, sales, and brokerage agreements
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ADR is a process where disputes are resolved outside court with the help of
Third parties
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Arbitration is a method of ADR where a neutral party
Hears both sides and renders a decision
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ADR is usually conducted in
Private
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Parties seeking arbitration often select an arbitrator through the
American Arbitration Association
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ADR may result in an agreement not to
Sue
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A decision made by an arbitrator is final if it is
Binding
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A key advantage of mandatory arbitration is
It provides a starting point for settlement discussions
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What may require businesses to participate in ADR before litigation?
Contract clauses
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The Federal Arbitration Act promotes arbitration in
Matters governed by federal law
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During arbitration, a neutral third party
Hears arguments and renders a decision
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Courts rarely overturn arbitration decisions unless there is
Fraud or corruption
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Arbitration decisions are usually made by
ADR agencies
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Which ADR method results in a final, unchangeable decision?
Binding arbitration
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Courts generally uphold arbitrators' decisions in
Employment and labor disputes
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Legally mandated arbitration may help parties initiate
Settlement negotiations
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A neutral third party facilitating discussion between disputing parties is called
Mediation
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Like arbitration, the goal of mediation is to
Resolve the case
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When might a court set aside an arbitration decision?
If fraud, corruption, or bias occurred
91
In complex cases, a specialized third party may provide a recommended resolution as an
Expert evaluator
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Med-arb is a process where parties first attempt ______, then move to ______ if necessary.
Mediation; arbitration
93
Arbitration clauses are a major issue in
Employment disputes
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A ______ trial is a short proceeding before a jury that results in a non-binding opinion.
Summary
95
The mediator’s role in mediation is to
Facilitate discussion
96
A condensed version of a case presented to top management instead of a jury occurs in a
Mini-trial
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