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Chapter 2 - The Legal Environment of Business Chapter 2 The...

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The Legal Environment of Business Chapter 2 The Court System
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The Role of the Judiciary • Courts have the power to interpret  the law • Judicial Review – the power of the  courts to determine the  constitutionality of actions of the  other branches of government. – Marbury v. Madison
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Jurisdiction • Jurisdiction – the power of a court to hear a  particular case. – Personal Jurisdiction • Long arm statute -  Mastondrea v. Occidental Hotels  – Minimum contacts: » Def must purposefully avail himself of acting in the forum  state » Cause of action must arise from contacts » Def’s actions must have substantial connection with state  to make jurisdiction reasonable – In Rem jurisdiction – Subject Matter jurisdiction • Limited jurisdiction • General jurisdiction
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Jurisdiction in Cyberspace Zippo Dot Com  – Sliding Scale test – Active Website – doing substantial  business over the Internet, vs.
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