Discussion 1:

BCA has explained to the PI owners that it is essential for them to understand the court system and jurisdiction of the courts before beginning the PI business. This is especially important as PI plans to conduct business over the internet and thus, will have potential transactions throughout the U.S.

For an in initial meeting between PI owners and BCA, you presented an overview of law and the legal system. You explained federalism, common law, and the court system. In addition, your presentation introduced the PI owners to the concept of the rule of law. That introduction is summarized below.

Introduction to the Rule of Law:
The primary purpose of law is to establish a set of rules and guidelines for Society to promote order and to create parameters for acceptable and prohibited behavior. Also, U.S. law has a very dominant protective purpose - protecting all citizens, as well as providing special protections for certain groups of people, in certain circumstances. In fact, many laws have a primary or secondary purpose of protecting either all citizens or specific groups of citizens.

A primary goal of law is to be fair and just to all, but what is fair to one group may be unfair to another group. What is fair in one situation could be unfair in another situation. Every right granted to an individual or group, to some extent, impinges on the rights of others. Legislatures enacting laws, and courts interpreting laws, must weigh and balance the right(s) granted vs the rights restricted by a specific law to determine if the law is justifiable and fair. Part of the weighing and balancing process involves determining if there a compelling public interest or purpose for the law that justifies granting certain rights while restricting other rights.

Example: Highway speed limit laws protect everyone (drivers, passengers, and pedestrians), but also restrict the freedom of drivers to drive at a speed of their choice. On balance, the restriction is easily justified as there is an important purpose in protecting drivers, passengers, and pedestrians.

Example: Laws that prohibit alcohol consumption/purchase by minors grant rights to those 21 years and older, and restrict rights of those under 21 years. On balance, Society, the legislatures, and courts have determined that this law is justified as Society has a strong public interest in protecting minors who may not have reached a level of maturity and judgment to handle the right to choose to consume/purchase alcohol.

The familiar symbol for law and the legal system is the Scale of Justice showing a blindfolded Lady. This represents the weighing and balancing process necessary to balance rights vs restrictions granted and imposed by laws.

Keep in mind that laws are created, enforced and interpreted by human beings, so the law is not perfect despite its lofty goals and purposes.

The U.S. Constitution provides legal authority for governments to regulate many business activities for both public and private business organizations.

Also, Pat and Gale asked you to prepare a summary report for them to present to PI owners regarding the specific courts and jurisdiction issues relevant to PI business transactions.

The summary report should address the following topics. Label all parts.

A. Identify the name of the Maryland state court that has jurisdiction to hear a legal dispute between PI and a customer regarding an in-state transaction.

• If either party to the dispute wants to appeal a ruling in a lower Maryland court, identify which appellate court would review the case.

B. What would be important for PI to recognize about jurisdiction and how it might affect their internet sales? Why?

C. Analyze and explain which court most likely would have jurisdiction in a legal dispute between PI and a potential customer in Delaware and why.

Use the following example as a basis for your analysis and discussion for part C.

Hypothetical Facts: PI advertised its painting services over the internet to Mid-Atlantic out-of-state customers. PI completed a residential painting job for Stephenson in Delaware; Stephenson paid for the services. A month later, Stephenson claimed the job was unsatisfactory and the paint was peeling off the walls. Stephenson wants to sue PI to recover the cost of the painting job.
Summary Report format:
Summary Report
TO: Pat Braden, Gale Roth
FROM: (your name)
RE: Painted Images - Courts and Jurisdiction
DATE:
Double space; 12-point Arial or Times Roman font