Business Law Exam 1 – 2026 – Study Guide and Practice
Material
Common Law - ANS✔✔ Developed by judges who issue their opinions when deciding a case.
Statutes - ANS✔✔ Written law enacted by the legislative branch of the federal & state
governments that establishes certain courses of conduct that covered parties must adhere to.
Stare Decisis - ANS✔✔ "To stand by the decision"
Precedent - ANS✔✔ -Rule of law established in a court decision.
-Lower courts must follow
Exclusive Jurisdiction - ANS✔✔ Hears cases involving federal crimes, antitrust, bankruptcy,
patent and copyright, suits against the U.S., and most admiralty cases.
Concurrent Jurisdiction - ANS✔✔ Hears cases involving diversity of citizenship and federal
questions over which federal courts do not have exclusive jurisdiction.
In Rem Jurisdiction - ANS✔✔ Jurisdiction to hear a case because of jurisdiction over the
property of the lawsuit.
In Personem Jurisdiction - ANS✔✔ Jurisdiction over the parties to a lawsuit.
Diversity Jurisdiction - ANS✔✔ Means for bringing a lawsuit in federal court that involves a
nonfederal question if the parties are (1) citizens of different states or (2) citizen of a state and a
citizen or subject of a foreign country.
, Standing to Sue - ANS✔✔ Having some stake in the outcome of a lawsuit.
Venue - ANS✔✔ Concept that requires lawsuits to be heard by the court with jurisdiction that is
nearest the location in which the incident occurred or where the parties reside.
U.S. District Courts - ANS✔✔ -Federal court system's intermediate appellate courts
-94 courts
-Empowered to impanel juries, receive evidence, hear testimony, and decide cases.
U.S. Courts of Appeals - ANS✔✔ -Has special appellate jurisdiction to review the decisions of
the Court of Federal Claims, the Patent and Trademark Office, & the Court of International
Trade.
-13 Circuits
U.S. Supreme Court - ANS✔✔ Highest court in the US, located in Washington DC; created by
Article III of the US Constitution.
Plaintiff - ANS✔✔ Party who files the complaint.
Defendant - ANS✔✔ Party who files an answer.
Appellant - ANS✔✔ Appealing party in appeal .
Respondant - ANS✔✔ Responding party in appeal.
Appellee - ANS✔✔ Act of asking an appellate court to overturn a decision after the trial court's
final judgment has been entered.
Material
Common Law - ANS✔✔ Developed by judges who issue their opinions when deciding a case.
Statutes - ANS✔✔ Written law enacted by the legislative branch of the federal & state
governments that establishes certain courses of conduct that covered parties must adhere to.
Stare Decisis - ANS✔✔ "To stand by the decision"
Precedent - ANS✔✔ -Rule of law established in a court decision.
-Lower courts must follow
Exclusive Jurisdiction - ANS✔✔ Hears cases involving federal crimes, antitrust, bankruptcy,
patent and copyright, suits against the U.S., and most admiralty cases.
Concurrent Jurisdiction - ANS✔✔ Hears cases involving diversity of citizenship and federal
questions over which federal courts do not have exclusive jurisdiction.
In Rem Jurisdiction - ANS✔✔ Jurisdiction to hear a case because of jurisdiction over the
property of the lawsuit.
In Personem Jurisdiction - ANS✔✔ Jurisdiction over the parties to a lawsuit.
Diversity Jurisdiction - ANS✔✔ Means for bringing a lawsuit in federal court that involves a
nonfederal question if the parties are (1) citizens of different states or (2) citizen of a state and a
citizen or subject of a foreign country.
, Standing to Sue - ANS✔✔ Having some stake in the outcome of a lawsuit.
Venue - ANS✔✔ Concept that requires lawsuits to be heard by the court with jurisdiction that is
nearest the location in which the incident occurred or where the parties reside.
U.S. District Courts - ANS✔✔ -Federal court system's intermediate appellate courts
-94 courts
-Empowered to impanel juries, receive evidence, hear testimony, and decide cases.
U.S. Courts of Appeals - ANS✔✔ -Has special appellate jurisdiction to review the decisions of
the Court of Federal Claims, the Patent and Trademark Office, & the Court of International
Trade.
-13 Circuits
U.S. Supreme Court - ANS✔✔ Highest court in the US, located in Washington DC; created by
Article III of the US Constitution.
Plaintiff - ANS✔✔ Party who files the complaint.
Defendant - ANS✔✔ Party who files an answer.
Appellant - ANS✔✔ Appealing party in appeal .
Respondant - ANS✔✔ Responding party in appeal.
Appellee - ANS✔✔ Act of asking an appellate court to overturn a decision after the trial court's
final judgment has been entered.
