Deck 2: The Court System and Dispute Resolution

Question 1

Mostek Corp., a Texas corporation, made a contract to sell computer-related products to North American Foreign Trading Corp., a New York corporation. North American used its own purchase order form, on which appeared the statement that any dispute arising out of an order would be submitted to arbitration, as provided in the terms set forth on the back of the order. Acting on the purchase order, Mostek delivered almost all of the goods but failed to deliver the final installment. North American then demanded that the matter be arbitrated. Mostek refused to do so. Was arbitration required? [ Application of Mostek Corp. , 502 N.Y.S.2d 181 (App. Div.)]

Answer 1

Refer Matter of Mostek Corp (120 A.D.2d 383) to answer question as below:
The following facts are relevant:
1) Mostek Corp, a Texas Company, is in business with North American Foregin Trading Corp (NAFTC) , a New York Company.
2) NAFTC issued purchase order forms with an arbitration clause that states disputes to be resolved by arbitration to Mostek. The clause was on the back of the form. The arbitration clause was not discussed by representatives of both parties, but it was signed by Mostek.
3) Mostek delivered goods as on the purchase order but failed to make the final delivery
4) NAFTC asked for arbitration, Mostek refused. The trial court (special terms) held that the clause was unenforceable based on fact (2) it was not discussed. NAFTC appealed to the Supreme Court of New York
The Supreme Court of New York reviewed the decision and found the clause enforceable. The contract was signed by Mostek and there was no intention of NAFTC to conceal the clause. Absent of not reading the clause or no knowledge of it doesn't make it unenforceable, as the Court opined "We find no compelling considerations of inequitable conduct or unequal bargaining power which would justify revocation of the contract. The buyer and seller are sophisticated corporate entities."

Question 2

Ceasar Wright was a longshoreman in Charleston, South Carolina, and a member of the International Longshoremen's Association (AFL-CIO). Wright used the union hiring hall. The collective bargaining agreement (CBA) of Wright's union provides for arbitration of all grievances. Another clause of the CBA states: "It is the intention and purpose of all parties hereto that no provision or part of this Agreement shall be violative of any Federal or State Law."
On February 18, 1992, while Wright was working for Stevens Shipping and Terminal Company (Stevens), he injured his right heel and back. He sought permanent compensation from Stevens and settled his claims for $250,000 and another $10,000 in attorney fees. Wright was also awarded Social Security disability benefits.
In January 1995, Wright, whose doctor had approved his return to work, returned to the hiring hall and asked to be referred for work. Wright did work between January 2 and January 11, 1995, but when the companies realized Wright had been certified as permanently disabled, they deemed him not qualified for longshoreman work under the CBA and refused to allow him to work for them.
Wright did not file a grievance under the union agreement but instead hired a lawyer and proceeded with a claim under the Americans with Disabilities Act. The district court dismissed the case because Wright had failed to pursue the grievance procedure provided by the CBA. Must Wright pursue the dispute procedure first, or can he go right to court on the basis of his federal rights under the Americans with Disabilities Act? [ Wright v. Universal Maritime Service Corp., 525 U.S. 70]

Answer 2

The Collective Bargaining A greement(CBA) is the written agreement between the employer and the employee which is enforceable by law. This agreement defines various terms and conditions of job such as employee wage, incentives, bonuses, vacations, medical benefits, dispute resolution mechanism etc.
Case summary:
W (Plaintiff) was injured and determined disabled. Plaintiff was refused employment by defendant on knowledge of his disability. U (defendant) has a collective bargaining agreement (CBA) with the plaintiff's union that states disputes must go through arbitration. Plaintiff sued on grounds of American Disabilities Act (ADA), employer discriminated because of his disability. District court dismissed case since plaintiff did not go through arbitration set by the CBA.
The legal clauses in ADA shall be applied to the CBA agreement to determine whether the W is qualified to continue his employment.
The fact that CBA provide arbitration for all grievances is very common and general, it gives right of arbitration only under the matter of dispute. There, is no specific reference to the ADA in the agreement. However, the any dispute clause could contain the federal statutory claims under the ADA.
The CBA arbitration clause that" it is the intention and purpose of all parties here to that provision or part of this agreement shall be violative of any federal law" requires the arbitrator to judge whether the clause defined in the ADA forms the legal bases to be applied to CBA. If the compliance is found, the appeal could be made in federal court.
Contract clause did not have language that excludes lawsuit dealing with the ADA.
Therefore, Wright can go to court on basis of his federal rights.

Question 3

Winona Ryder was arrested for shoplifting from Saks Fifth Avenue in California. One of the members of the jury panel for her trial was Peter Guber, a Hollywood executive in charge of the production of three films in which Ms. Ryder starred, including Bram Stoker ' s Dracula, The Age of Innocence, and Little Women. If you were the prosecuting attorney in the case, how could you discover such information about this potential juror, and what are your options for excluding him from selection? [Rick Lyman, "For the Ryder Trial, a Hollywood Script," New York Times , November 3, 2002, SL-1]

Answer 3

The 6 th Amendment guarantees a right for an impartial jury. During the jury selection process, voir dire , the lawyer can question the jury member. Since the jury member has relation with one of the parties in the case the lawyer can challenge for cause , stating that the juror is bias because of conflict of interest. In this case the juror is a producer of the film that stars the defendant, so this would be sufficient cause.

Question 4

doctors had a dispute over who was doing how much work at their clinic. Their dispute was submitted to arbitration and the arbitrator held in favor of the less experienced doctor. The senior doctor wants the arbitration set aside. Is it possible for the arbitrator's decision to be set aside?

Question 5

Martha Simms is the plaintiff in a contract suit she has brought against Floral Supply, Inc., for its failure to deliver the green sponge Martha needed in building the floral designs she sells to exclusive home decorators. Martha had to obtain the sponge from another supplier and was late on seven deliveries. One of Martha's customers has been called by Martha's lawyer as a witness and is now on the witness stand, testifying about Martha's late performance and the penalty she charged. The lawyer for Floral Supply knows that Martha's customer frequently waives penalties for good suppliers. How can Floral Supply's lawyer get that information before the jury?

Question 6

the steps in a lawsuit. Begin with the filing of the complaint, and explain the points at which there can be a final determination of the parties' rights in the case.

Question 7

Explain why a business person would want to use alternative dispute resolution methods. Discuss the advantages. What disadvantages do you see?

Question 8

Ralph Dewey has been charged with a violation of the Electronic Espionage Act, a federal statute that prohibits the transfer, by computer or disk or other electronic means, of a company's proprietary data and information. Ralph is curious. What type of court has jurisdiction? Can you determine which court?

Question 9

Jerry Lewinsky was called for jury duty. When voir dire began, Jerry realized that the case involved his supervisor at work. Can Jerry remain as a juror on the case? Why or why not?

Question 10

Carolyn, Elwood, and Isabella are involved in a real estate development. The development is a failure, and Carolyn, Elwood, and Isabella want to have their rights determined. They could bring a lawsuit, but they are afraid the case is so complicated that a judge and jury not familiar with the problems of real estate development would not reach a proper result. What can they do?

Question 11

Larketta Randolph purchased a mobile home from Better Cents Home Builders, Inc., and financed her purchase through Green Tree Financial Corporation. Ms. Randolph signed a standard form contract that required her to buy Vendor's Single Interest insurance, which protects the seller against the costs of repossession in the event of default. The agreement also provided that all disputes arising from the contract would be resolved by binding arbitration. Larketta found that there was an additional $15 in finance charges that were not disclosed in the contract. She and other Green Tree customers filed a classaction suit to recover the fees. Green Tree moved to dismiss the suit because Larketta had not submitted the issue to arbitration. Larketta protests, "But I want the right to go to court!" Does she have that right? What are the rights of parties under a contract with an arbitration clause? [ Green Tree Financial Corp. v. Randolph , 531 U.S. 79]

Question 12

Watson invested $5,000,000 in SmartRead, Inc., a company that was developing an electronic reading device. Within a few months, the $5,000,000 was spent but SmartRead never developed the reading device. John filed suit against directors of SmartRead for their failure to supervise SmartRead's CEO in his operation of the company. The directors used an expert on corporate governance to testify that the directors had done all that they could to oversee the company. The expert did not disclose that he had served as a director of a company and had been found to be negligent in his role there and had been required to pay $370,000 to shareholders. The directors won the case. Is there anything Watson can do?

Question 13

Indicate whether the following courts are courts of original, general, limited, or appellate jurisdiction:
a. Small claims court
b. Federal bankruptcy court
c. Federal district court
d. U.S. Supreme Court
e. Municipal court
f. Probate court
g. Federal court of appeals

Question 14

Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the company's CEO, misled investors in 2001 about the true financial condition of the company. During the time of the alleged misrepresentation, Mr. Ellison was working with a biographer on his life story and there are videotapes of Mr. Ellison's interviews with his biographer as well as e-mails between the two that discuss Oracle. Could the Nursing Home Pension Fund have access to the tapes and e-mails? Explain how. [ Nursing Home Pension Fund, Local 144 v. Oracle Corp., 380 F.3d 1226 (9th Cir.)]