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Chapter02 - CHAPTER 2 COURTS AND ALTERNATIVE DISPUTE...

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7 C HAPTER 2 C OURTS AND A LTERNATIVE D ISPUTE R ESOLUTION A NSWER TO C RITICAL A NALYSIS Q UESTION IN THE F EATURE I NSIGHT INTO E THICS C RITICAL T HINKING I NSIGHT INTO THE S OCIAL E NVIRONMENT (P AGE 39) If wealthier individuals increasingly use private judges, how will our justice system be affected in the long run? The government‟s judicial system may become more focused on other proceedings criminal trials, for example, or civil appellate matters rather than civil trials. The private justice system may exist largely to serve the interests of those who pay for it (because the arbitrators, for example, may attempt to rule in favor of those who pay for the arbitrators‟ efforts). A NSWERS TO Q UESTIONS AT THE E NDS OF THE C ASES C ASE 2.1 (P AGE 33) W HAT I F THE F ACTS W ERE D IFFERENT ? If Mastondrea had not seen Libgo and Allegro’s ad, but had bought a Royal Hideaway vacation package on the recommendation of a Liberty travel agent, is it likely that the result in this case would have been different? Why or why not? It is not likely that the court would have concluded there was no personal jurisdiction in this case on the basis of the facts stated in the question. It was the defendant ho tel‟s minimum contacts with the state, and its expectations flowing from those conta cts, that served as the basis for the court‟s assertion of jurisdiction. Those contacts included marketing activities, which were part of the arrangements with Libgo and Liberty. Whether Mastondrea acted in response to an ad placed by Libgo or a verbal suggestion made by a Liberty agent would not seem significant. T HE G LOBAL D IMENSION
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8 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS What do the circumstances and the holding in this case suggest to a business firm that actively attempts to attract customers in a variety of jurisdictions? This situation and the ruling in this case indicate that a business firm actively attempting soliciting business in a jurisdiction should be prepared to appear in its courts. This principle likely covers any jurisdiction and reaches any business conducted in any manner. C ASE 2.2 (P AGE 45) T HE E THICAL D IMENSION Does the holding in this case permit a court to enforce an arbitration agreement in a contract that the arbitrator later finds to be void? Is this fair? Why or why not? The holding in the Buckeye case allows a court to enforce an arbitration agreement in a contract that the arbitrator later finds to be void. This may seem unfair at first but, in the words of the Court, “it is equally true that respondents‟ approach permits a court to deny effect to an arbitration p rovision in a contract that the court later finds to be perfectly enforceable.” This is why the Court ruled that arbitration provisions are separately enforceable.
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