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BACKGROUND- BARNES, CHAPTER ONE:There are numerous sources of law within each of the 51 systems. The primary sources are1. Constitutions; 2. Treaties; 3. Statutes; 4. Administrative rules and decisions; 5. Executive orders; 6. Judicial decisions; and 7. Private law.

Courts determine law through a process of legal interpretation. Many words are ambiguous by nature. Further, most statutes are written in very broad and general language. Thus, the court's power to interpret is an important one. It is especially important when a case involves a situation the legislature did not foresee when it passed the law. Through such statutory interpretation, judges can broaden or narrow the reach of a law. In interpreting legal rules, courts generally:

1. Look to the plain meaning of the language.

2. Examine the legislative history of the rule.

3. Consider the purpose to be achieved by the rule.

4. Try to accommodate public policy.

HYPOTHETICAL:Alan Howard is a subscriber of America Online (AOL), an Internet service provider that provides Internet access, electronic mail, and numerous other services to its users. Howard filed a lawsuit against AOL, alleging that the company violated the Communications Act by making unreasonable charges, practices, classifications, or regulations; by unreasonably prejudicing some subscribers by favoring others; and by failing to protect subscriber privacy. AOL defended on the grounds that the Communications Act regulates only common carriers and, since it was not a common carrier, it was not governed by that statute.

QUESTION:Apply the four steps of statutory interpretation set forth above (plain meaning; legislative history; purpose; public policy) to these facts todescribe the process by which the Court will determine if AOL is a common carrier in this case. (HINT:See Page 14 ofLaw for Business (Barnes, 2012)).

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BACKGROUND - BARNES, CHAPTER TWO:A court can only hear a case over which it has jurisdiction. Jurisdiction is the authority of a court to hear and determine disputes. Jurisdiction can be limited in several ways. Some courts are limited by subject matter jurisdiction. They can hear only cases involving certain types of controversies, such as tax disputes or juvenile matters. Other courts are limited by the amount of damages being sought or the penalty to be assessed. The small claims courts discussed later in this chapter are limited by such jurisdiction. The jurisdiction of all courts is limited geographically. A court may not decide a legal dispute unless it has personal jurisdiction over the defendant. Personal jurisdiction generally does not exist unless the defendant has some close connection with the territory where the suit is brought.

HYPOTHETICAL:Connie, a resident of Michigan, was visiting her grandmother in California. While dining at a restaurant, a light fixture fell and severely cut Connie's arm. Connie required surgery and several months of physical therapy before she was able to use her arm properly, and she still has residual damage. She sues the restaurant, asking for $500,000 to reimburse medical expenses, lost wages, and the permanent damage, and $500,000 for pain and suffering.

QUESTION:Where can the lawsuit be heard, and why? (HINT:See Page 31 of Law for Business (Barnes, 2012)).