BUS 206 Milestone One Case Study
A. The appropriate court for this lawsuit depends upon several factors. Three important
considerations include the following:
1. Personal jurisdiction. Is the courts power over a person or business in a case. Without it, a
court has no power over the parties involved and therefore cannot make a decision against that
person or business. In this case and since Funny Face is sold over the internet their geographic
areas they conduct business in is vast. Assuming Mr. Margolin is a resident of New York and in
fact bought the product over the internet, the court would still have personal jurisdiction in this
case even though Funny Face business owners, Chris Matt and Ian live in California. Since they
sell product over the internet, they conduct business in the states the product is purchased in,
including New York, therefore proving this is personal jurisdiction in New York State. The courts
could also consider long arm jurisdiction since the business owners are from California and the
Novelty Now resides in Florida but conduct business in New York.
2. Subject matter jurisdiction. Is a court's power to hear the kind of case a lawsuit involves.
Since the subject matter of Margolin's suit is alleging negligence against Novelty Now and Chris,
Matt and Ian of Funny Face, this type of case would fall under state court jurisdiction. If
Margolin is suing for more than $75000, and since the defendants are citizens of a different state,
this case will satisfy the requirements for a diversity-of-citizenship case which is “concurrent
federal jurisdiction means that both state and federal courts have jurisdiction over a case”
(Kubasek, N. (2014).
3. Minimum contacts. Is a term that is used to determine when it is appropriate for a court in
one state to assert personal jurisdiction over a defendant from another state. “The requirement of
minimum contacts means that the defendant has to have taken actions that were purposefully
, directed towards the forum state.” (Minimum Contacts Law & Legal Definition. (n.d.). In this
case since the product was being sold over the internet via the state of New York, this meets that
minimum contacts requirement therefore the court may exercise personal jurisdiction over the
suit.
B. Alternative dispute resolution (ADR) may be an option to resolve this dispute.
1. “The term ADR refers to the resolution of legal disputes through methods other than litigation,
such as negotiation, mediation, arbitration, summary jury trials, minitrials, neutral case
evaluations, and private trials” (Kubasek, N. (2014). Two types of ADR would be appropriate for
this case, are arbitration and summary jury trial. In arbitration, a neutral person called an
"arbitrator" hears arguments and evidence from each side and then decides the outcome of the
dispute. Arbitration is more efficient, less expensive, there is more control over the process of
dispute, and it offers more flexibility in decision making. However in arbitration, there is finality,
and a final decision is hard to shake and it is very difficult to appeal arbitration ruling. There is
also, no jury and having a jury of their peers is an important right not easily given up. “A
summary jury trial is an abbreviated trial that leads to a nonbinding jury verdict.” (Kubasek, N.
(2014). The summary trial is quick, usually lasting only a few days and at the end of it, there is a
verdict that both parties can see on what the outcome could be if it went to litigation. While it is a
quick process this can also hinder the process as the lawyers only have a limited amount of time
for their presentation. After the verdict, both parties will go into a settlement conference, if they
cannot come to a resolution then, it then goes to trial court where they were trying to avoid in the
first place.
A. The appropriate court for this lawsuit depends upon several factors. Three important
considerations include the following:
1. Personal jurisdiction. Is the courts power over a person or business in a case. Without it, a
court has no power over the parties involved and therefore cannot make a decision against that
person or business. In this case and since Funny Face is sold over the internet their geographic
areas they conduct business in is vast. Assuming Mr. Margolin is a resident of New York and in
fact bought the product over the internet, the court would still have personal jurisdiction in this
case even though Funny Face business owners, Chris Matt and Ian live in California. Since they
sell product over the internet, they conduct business in the states the product is purchased in,
including New York, therefore proving this is personal jurisdiction in New York State. The courts
could also consider long arm jurisdiction since the business owners are from California and the
Novelty Now resides in Florida but conduct business in New York.
2. Subject matter jurisdiction. Is a court's power to hear the kind of case a lawsuit involves.
Since the subject matter of Margolin's suit is alleging negligence against Novelty Now and Chris,
Matt and Ian of Funny Face, this type of case would fall under state court jurisdiction. If
Margolin is suing for more than $75000, and since the defendants are citizens of a different state,
this case will satisfy the requirements for a diversity-of-citizenship case which is “concurrent
federal jurisdiction means that both state and federal courts have jurisdiction over a case”
(Kubasek, N. (2014).
3. Minimum contacts. Is a term that is used to determine when it is appropriate for a court in
one state to assert personal jurisdiction over a defendant from another state. “The requirement of
minimum contacts means that the defendant has to have taken actions that were purposefully
, directed towards the forum state.” (Minimum Contacts Law & Legal Definition. (n.d.). In this
case since the product was being sold over the internet via the state of New York, this meets that
minimum contacts requirement therefore the court may exercise personal jurisdiction over the
suit.
B. Alternative dispute resolution (ADR) may be an option to resolve this dispute.
1. “The term ADR refers to the resolution of legal disputes through methods other than litigation,
such as negotiation, mediation, arbitration, summary jury trials, minitrials, neutral case
evaluations, and private trials” (Kubasek, N. (2014). Two types of ADR would be appropriate for
this case, are arbitration and summary jury trial. In arbitration, a neutral person called an
"arbitrator" hears arguments and evidence from each side and then decides the outcome of the
dispute. Arbitration is more efficient, less expensive, there is more control over the process of
dispute, and it offers more flexibility in decision making. However in arbitration, there is finality,
and a final decision is hard to shake and it is very difficult to appeal arbitration ruling. There is
also, no jury and having a jury of their peers is an important right not easily given up. “A
summary jury trial is an abbreviated trial that leads to a nonbinding jury verdict.” (Kubasek, N.
(2014). The summary trial is quick, usually lasting only a few days and at the end of it, there is a
verdict that both parties can see on what the outcome could be if it went to litigation. While it is a
quick process this can also hinder the process as the lawyers only have a limited amount of time
for their presentation. After the verdict, both parties will go into a settlement conference, if they
cannot come to a resolution then, it then goes to trial court where they were trying to avoid in the
first place.
