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Solutions Manual for Cengage Advantage Books Fundamentals of Busines
Law Summarized Cases 9th Edition by Roger LeRoy Miller
,36 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
Chapter 2
Traditional and Online
Dispute Resolution
INTRODUCTION
Despite the substantial amount of litigation that occurs in the United States, the experience of many
students with the American judicial system is limited to little more that some exposure to traffic court.
In fact, most persons have more experience with and know more about the executive and legislative
branches of government than they do about the judicial branch. This chapter provides an excellent
opportunity to make many aware of the nature and purpose of this major branch of our government.
One goal of this text is to give students an understanding of which courts have power to hear what
disputes and when. Thus, the first major concept introduced in this chapter is jurisdiction. Careful
attention is given to the requirements for federal jurisdiction and to which cases reach the Supreme
Court of the United States. It might be emphasized at this point that the federal courts are not
necessarily superior to the state courts. The federal court system is simply an independent system
authorized by the Constitution to handle matters of particular federal interest.
This chapter also covers the nuts and bolts of the judicial process.
Finally, the chapter reviews alternatives to litigation that can be as binding to the parties involved as a
court’s decree. Thus, alternative dispute resolution, including methods for settling disputes in online
forums, is the chapter’s third major topic.
Among important points to remind students of during the discussion of this chapter are that most
cases in the textbook are appellate cases (except for federal district court decisions, few trial court
opinions are even published), and that most disputes brought to court are settled before trial. Of those
that go through trial to a final verdict, less than 4 percent are reversed on appeal. Also, it might be
emphasized again that in a common law system, such as the United States’, cases are the law. Most of
the principles set out in the text of the chapters represent judgments in decided cases that involved
real people in real controversies.
, CHAPTER 2: TRADITIONAL AND ONLINE DISPUTE RESOLUTION 37
Full all chapters instant download please go to Solutions Manual, Test Bank site: downloadlink.org
VIDEO SUPPLEMENTS
The following video supplements relate to topics discussed in this chapter—
PowerPoint Slides
To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint
slides compiled for Chapter 2.
Business Law Digital Video Library
The Business Law Digital Video Library at www.cengage.com/blaw/dvl offers a variety of videos for
group or individual review. Clips on topics covered in this chapter include the following.
• Legal Conflicts in Business
Jurisdiction in Cyberspace—The software company finds itself being sued by a customer in
Montana, but the company claims that it doesn’t do business in Montana.
Alternative Dispute Resolution: International Sales and Lease Contracts—The advertising firm ordered a
quantity of jalapenos from Mexico. When the shipment arrived, the advertiser found that the full
quantity was not delivered.
CHAPTER OUTLINE
I. The Judiciary’s Role in American Government
The essential role of the judiciary is to interpret and apply the law to specific situations.
A. JUDICIAL REVIEW
The judiciary can decide, among other things, whether the laws or actions of the other two
branches are constitutional. The process for making such a determination is known as
judicial review.
B. THE ORIGINS OF JUDICIAL REVIEW
Judicial review was a new concept at the time of the adoption of the Constitution, but it is
not mentioned in the document. Its application by the United State Supreme Court came
soon after the United States began, notably in the case of Marbury v. Madision.
ANSWER TO LEARNING OBJECTIVE/FOR REVIEW QUESTION NO. 1
, 38 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
What is judicial review? The courts can decide whether the laws or actions of the legislative and execut
branches of government are constitutional. The process for making this determination is judicial review.
ENHANCING YOUR LECTURE—
MARBURY V. MADISON (1803)
In the edifice of American law, the Marbury v. Madisona decision in 1803 can be viewed as the
keystone of the constitutional arch. The facts of the case were as follows. John Adams, who had
lost his bid for reelection to the presidency to Thomas Jefferson in 1800, feared the
Jeffersonians’ antipathy toward business and toward a strong central government. Adams thus
worked feverishly to “pack” the judiciary with loyal Federalists (those who believed in a strong
national government) by appointing what came to be called “midnight judges” just before
Jefferson took office. All of the fifty-nine judicial appointment letters had to be certified and
delivered, but Adams’s secretary of state (John Marshall) had succeeded in delivering only forty-
two of them by the time Jefferson took over as president. Jefferson, of course, refused to order
his secretary of state, James Madison, to deliver the remaining commissions.
MARSHALL’S DILEMMA
William Marbury and three others to whom the commissions had not been delivered sought a
writ of mandamus (an order directing a government official to fulfill a duty) from the United
States Supreme Court, as authorized by Section 13 of the Judiciary Act of 1789. As fate would
have it, John Marshall had stepped down as Adams’s secretary of state only to become chief
justice of the Supreme Court. Marshall faced a dilemma: If he ordered the commissions
delivered, the new secretary of state (Madison) could simply refuse to deliver them—and the
Court had no way to compel action, because it had no police force. At the same time, if Marshall
simply allowed the new administration to do as it wished, the Court’s power would be severely
eroded.
MARSHALL’S DECISION
Marshall masterfully fashioned his decision. On the one hand, he enlarged the power of the
Supreme Court by affirming the Court’s power of judicial review. He stated, “It is emphatically
the province and duty of the Judicial Department to say what the law is. . . . If two laws conflict
with each other, the courts must decide on the operation of each. . . . So if the law be in
opposition to the Constitution . . . [t]he Court must determine which of these conflicting rules
governs the case. This is the very essence of judicial duty.”
On the other hand, his decision did not require anyone to do anything. He stated that the
highest court did not have the power to issue a writ of mandamus in this particular case. Marshall
pointed out that although the Judiciary Act of 1789 specified that the Supreme Court could issue
writs of mandamus as part of its original jurisdiction, Article III of the Constitution, which spelled
out the Court’s original jurisdiction, did not mention writs of mandamus. Because Congress did
not have the right to expand the Supreme Court’s jurisdiction, this section of the Judiciary Act of
1789 was unconstitutional—and thus void. The decision still stands today as a judicial and
political masterpiece.
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