Family Business Mediators

1. Rothchild of New York and Wiley of Nevada entered into a sales contract involving goods for the value of $5,050. Rothchild decided not to ship the goods, forcing Wiley to buy the goods for $250 more. Wiley claims that he can now sue Rothchild in federal district court. Is Wiley correct?

a. No, cases involving diversity of citizenship will be tried in a federal district court only when the amounts of money involved exceed $50,000.
b. Yes, cases involving citizens of different states where the amount of money involved exceeds $5,000 will be tried in a federal district court.
c. Yes, all cases involving citizens of different states are automatically referred to the federal court.
d. No, since the amount of money Wiley lost was only $250; this case would be heard in a general trial court.

2. Janina Riley is declaring bankruptcy. What court will have original jurisdiction in this case?

a. general trial courts
b. lower trial courts
c. U.S. district courts
d. special U.S. Courts

3. At the beginning of a lawsuit, the legal papers that are filed establish the issues that the court is to decide by setting forth the plaintiff’s allegations and the defendant’s answers to those allegations. These legal papers are referred to as the

a. answer
b. complaint
c. pleadings
d. summons

4. Out-of-court settlements often occur during what part of the civil trial procedure?

a. pleadings
b. summons
c. methods of discovery
d. pretrial hearing

5. Jeff sold Tyler a used car for $3,500. Five days later, the alternator went out. Tyler believed Jeff had withheld information about the car’s mechanical condition and should pay for the necessary repairs to replace the alternator. After arguing about the situation, they decided to let Justin, an independent third party trained to solve disputes between consumers, businesses, and casual sellers, develop a solution that would be acceptable to both sides. Justin decided that they should split the cost to replace the alternator. Tyler was not satisfied with the decision. Is he nevertheless bound by Justin’s decision?

a. Yes, because Justin became the arbitrator, his decision is legally binding.
b. No, since Justin is the independent third party, he is acting as the mediator whose actions are merely advisory and, therefore, not legally binding.
c. No, because these types of disputes need to be settled by an impartial jury.
d. No, because Justin is not qualified to be an independent third party.

1) The only thing wrong with choice A is that the amount is $75,000. This was just recently changed so if this test is relatively old, then this might be your answer.
Otherwise, D can be correct because in cases where diversity of citizenship is the only basis for federal court standing, state courts only have concurrent jurisdiction. this case would probably be heard in small claims court.

2) D (would be heard in federal Bankruptcy Court)

3) C (answer & complaint combined so pleadings)

4) D

5) B

Recommended Reading

• Business Conflict Resolution Explained
• Have you ever tried to act as a mediator between warring parties in your veterinary practice?
• Mediation – The Business Case
• Annan meets business chiefs – Feb 6, ’08
• BIS Manage Workplace Conflict.wmv
• Dr Mark DeVolder – Business Change Speaker (MCP Speakers)
• The Complete Guide to Conflict Resolution in the Workplace