Questions 1:
Discuss the following:
1. Pursuant to the chapter reading this week – define and explain what personal jurisdiction means, subject matter jurisdiction and what is meant by the “long-arm statute?” Provide an example of each.
2. The decisions by the highest court in the land, the Supreme Court of the United States can affect business and doing business today. Research one United States Supreme Court case, decided in the past 10 years that relates to and effects the ability to do business in the United States. Provide the facts of the case, the law, the outcome, and your thoughts on whether you agreed or disagreed with the Court’s opinion. Use the links below:
Supreme Court Decision link for cases: Opinions of the Court – 2020 (supremecourt.gov)
Nexis-Uni Legal Database: https://libdatab.strayer.edu/login?url=https://www.nexisuni.com
Please be sure answers are researched, informed, and substantiated by citing sources at the bottom of your discussion post following Strayer Writing Standards. NO CREDIT is awarded for failure to follow this requirement. See the Strayer Writing Standards link in BB.
Sample Answer to Question 1:
Personal jurisdiction is the authority of court over the person (Jennings, 1). In other words, personal jurisdiction would mean that a person is who is being sued has a relationship of some kind within that jurisdiction. An example of personal jurisdiction could be that I own property in this area therefore the court can say that I have personal jurisdiction. Subject matter jurisdiction is the authority of court over subject matter (Jennings, 1). In other words, subject matter jurisdiction would be when certain courts hold cases based on the topic. An example of subject matter jurisdiction is for bankruptcy matters; a court that has no jurisdiction over these types of topics would not be involved.
Long-arm statue is adopted by all states and offers authority to broaden their “arms of jurisdiction” into other states (Jennings,1). From the chapter reading, long-arm statue allows a court to obtain personal jurisdiction over someone that is not within the area based on their ties to the area. An example of long-arm statue could be the fact that I live in Virginia, but I recently visited Florida and committed a tort therefore I can be held accountable in Florida Court.
Source:
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1. Marianne M. Jennings. (2018). Business: Its Legal, Ethical, and Global Environment (11th ed.). Cengage.
JESINOSKI ET UX. V. COUNTRYWIDE HOME LOANS, INC., ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE EIGHTTH CIRCUIT
NO. 13-684. Argued November 4, 2014- Decided January 13, 2015
13-684 Jesinoski v. Countrywide Home Loans, Inc. (01/13/2015) (supremecourt.gov)
Facts:
The Jesinoski’s refinanced their home with Countrywide Home Loans, Inc.
Countrywide was bought by Bank of America.
Three years after the couple refinanced their home, they sent a letter to cancel the transaction.
Bank of America responded with a refusal to recognize the cancellation.
One year and one day later, Jesinoski filed suit in federal court, requesting a declaration of recission and damages.
Appealed: Defendant argued that the Jesinoski’s failed to file their first complaint until after the three years. Judgement was entered by District Court in favor of Bank of America stating that the Truth in Lending Act provides a borrower the ability to exercise their rights by rescinding a loan only by filing a lawsuit within three years. Jesinoski’s lawsuit was filed four years and one day after the loan was done.
The Truth in Lending Act (TILA) was created to ensure that credit terms are disclosed and that all the same verbiage is used from all creditors (2).
Eighth Circuit: Affirmed the decision
Supreme Court of the United States: Reversed the judgment of the Eighth Circuit and remand the case for further proceedings
Why?
Justice Scalia, J., delivered the opinion for a unanimous Court.
The Court held that the Truth in Lending Act gives borrowers the right to rescind certain loans up to three years after the transaction is consummated. The question presented is whether a borrower exercises this right by providing written notice to his lender, or whether he must also file a lawsuit before the 3-year period elapses.
What does this mean? The Jesinoksi’s have the opportunity to cancel the loan they obtained from Countrywide Home Loans, Inc.
How does this effect business today? A business that offers mortgage loans are required to provide the correct notices to their borrowers or face huge losses.
Do I agree with this decision? Yes, obtaining a mortgage loan is a huge deal and having buyers’ remorse can be one of the worst things especially when it comes to thousands of dollars. Having the ability to have 3 days to review your documents and ensure you understand what you’re getting yourself into is something I totally agree with. If the company fails to provide the required disclosures, this law allows the consumer to rescind the transaction. This is a way to make sure mortgage companies are doing what they are supposed to by disclosing the necessary information and ensure there is no hidden information that the ordinary person, not trained in mortgages, would not understand.
Sources:
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1. [Jesinoski Et Ux v. Countrywide Home Loans, Inc], 574 US _____ 2015, retrieved from 13-684 Jesinoski v. Countrywide Home Loans, Inc. (01/13/2015) (supremecourt.gov)
2. Consumer Financial Protection Bureau. Retrieved February 15, 2022. Truth in Lending. Truth in Lending Act (TILA) examination procedures | Consumer Financial Protection Bureau (consumerfinance.gov)
