business law: types of jurisdiction

Business Law:

Jurisdiction

Presentation by Paul Donion

Questions of Law

❖ One of the most fundamental questions of law is whether a given court has jurisdiction to preside over a given case.

Source: https://www.law.cornell.edu/wex/jurisdiction

https://www.law.cornell.edu/wex/jurisdiction

A jurisdictional question may be broken down into 3 components:

1. whether there is jurisdiction over the person,

2. whether there is jurisdiction over the subject matter, and -

3. whether there is jurisdiction to render the particular judgement sought.

Source: https://www.law.cornell.edu/wex/jurisdiction

https://www.law.cornell.edu/wex/jurisdiction

Here are some descriptions to the 9 Types of Jurisdictions in

Business Law

1. Personal Jurisdiction

❖ Exists when a defendant is located within the territorial boundaries within which a court has the right and power to decide cases.

Source: Clarkson, K. W. (2009). Business law: Text and cases: Legal, ethical, global, and e-commerce environments. Mason, OH: South-Western Cengage Learning.

❖ Jurisdiction may be exercised over out-of-state defendants under state long arm statutes. Courts have jurisdiction over corporate defendants that do business within the state, as well as corporations that advertise, sell, or place goods into the steam of commerce in the state.


2. Property Jurisdiction

❖ Exists when the property that is subject to a lawsuit is located within the territorial boundaries within which a court has the right and power to decide cases.


3. Subject Matter Jurisdiction

❖ Limits the court’s jurisdictional authority to particular types of cases.


❖ Limited jurisdiction — exists when a court is limited to a specific subject matter, such as probate or divorce.

❖ General jurisdiction — exists when a court can hear cases involving a broad array of issues.


4. Original Jurisdiction

❖ Exists with courts that have authority to hear a case for the first time (trial courts).


5. Appellate Jurisdiction

❖ Exists with courts of appeal and review. Generally, appellate courts do not have original jurisdiction.


6. Federal Jurisdiction

❖ 1. Federal questions— A federal court can exercise jurisdiction when the plaintiff’s cause of action is based at least in part of the U.S. Constitution, a treaty, or a federal law.


❖ 2. Diversity of citizenship— A federal court can exercise jurisdiction in cases between citizens of different states when the amount in controversy exceeds $75,000 (or in cases between a foreign country and citizens of a state or of different states and in cases between citizens of a state and citizens or subjects of a foreign country.)


7. Concurrent Jurisdiction

❖ Exists when both federal and state courts have authority to hear the same case.


8. Exclusive Jurisdiction

❖ Exists when only state courts or only federal courts have authority to hear a case.


9. Jurisdiction in Cyberspace

❖ Because the Internet does not have physical boundaries, traditional jurisdictional concepts have been difficult to apply in cases involving activities conducted via the Web.


❖ Gradually, the courts are developing standards to use in determining when jurisdiction over a Web site owner or operator in another state is proper.

❖ Jurisdictional disputes involving international cyberspace transactions present a significant legal challenge.


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Paul Donion is a professor at the University of Washington at Tacoma where he teaches courses in international business law. He holds a JD degree from Seton Hall School of Law as well as a Master’s degree in International Finance from Harvard University.

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