Author Question: Describe the jurisdiction of the federal courts. What law will the federal court apply? ... (Read 92 times)

Diane · **on:** Aug 3, 2018

Describe the jurisdiction of the federal courts. What law will the federal court apply?

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Question 2

Describe the arbitration process.

Ans?

livaneabi · **Reply #1 on:** Aug 3, 2018

Answer to Question 1

Because the federal government is a government of limited powers, the jurisdiction of the federal courts is limited. Article III of the U.S. Constitution establishes the boundaries of federal judicial power. Section 2 of Article III states that the judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority.
Whenever a plaintiff's cause of action is based, at least in part, on the U.S. Constitution, a treaty, or a federal law, then a federal question arises, and the case comes under the judicial power of the federal courts. Any lawsuit involving a federal question can
originate in a federal district (trial) court. People who claim that their constitutional rights have been violated can begin their suits in a federal district court.
Federal district courts can also exercise original jurisdiction over cases involving diversity of citizenship. Such cases may arise between:
Citizens of different states.
A foreign country and citizens of a state or of different states.
Citizens of a state and citizens or subjects of a foreign country.
The amount in controversy must be more than 75,000 before a federal court can take jurisdiction in such cases. For purposes of diversity-of-citizenship jurisdiction, a corporation is a citizen of the state in which it is incorporated and of the state in which its principal place of business is located. A case involving diversity of citizenship can be filed in the appropriate federal district court. In a case based on a federal question, a federal court will apply federal law. In a case based on diversity of citizenship, however, a federal court will normally apply the law of the state in which the court sits. This is because cases based on diversity of citizenship generally do not involve activities that are regulated by the federal government. Therefore, federal laws do not apply, and state law will govern the issue.

Answer to Question 2

The first step in the arbitration process is the submission agreement, in which the parties agree to submit their dispute for arbitration. If an arbitration clause was included in a contract, the clause itself is the submission to arbitrate. Most states require that an agreement to submit a dispute to arbitration must be in writing. The submission agreement typically identifies the parties, the nature of the dispute to be resolved, the monetary amounts involved in the dispute, the place of arbitration, and the powers that the arbitrator will exercise. Frequently, the agreement includes a signed statement that the parties intend to be bound by the arbitrator's decision.
The next step in the process is the hearing. Normally, the parties agree prior to arbitrationin an arbitration clause or in a submission-to-arbitrate agreement, for exampleon what procedural rules will govern the proceedings. This includes the method to be used to select an arbitrator or a panel of three arbitrators. In a typical hearing, the parties begin as they would at a trial by presenting opening arguments and stating what remedies should or should not be granted. After the opening statements have been made, evidence is presented. Witnesses may be called and examined by both sides. After all evidence has been presented, the parties give their closing arguments. Although arbitration is in some ways similar to a trial, the rules (such as those regarding what kinds of evidence may be introduced) are usually much less restrictive than those involved in formal litigation.
After each side has had an opportunity to present evidence and to argue its case, the arbitrator reaches a decision. The final decision of the arbitrator is called an award, even if no monetary award is conferred on a party as a result of the proceedings. Under most arbitration statutes, the arbitrator must render an award within 30 days of the close of the hearing.