Acct 324 1st EditionLecture 3Outline of Last LectureI. Business Ethics and The Ethical Dilemma II. The U.S. Legal SystemOutline of Current Lecture I. Finishing up The U.S. Legal SystemII. Steps in Civil Litigation III. ContractsCurrent LectureI. Finishing up The U.S. Legal SystemThe Federal Court System (These notes will allow you to understand this slide)- Trial starts in a general federal court- If one side or the other is not happy the case will go to the District Court of Appeals - If the verdict reached is still not satisfactory for both sides the Supreme Court may pick itupState Systems- State trails of small matters ($7500 and under) will start in Small Matter Court aka Majesties Court - If either part appeals the case it will go the Intermediate Court of Appeals- If it must go up from there the case will go to the State Supreme CourtII. Steps in Civil LitigationSteps in Civil LitigationThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Pleadings – Petition filed by the plaintiff (Could include any counter-suits by the defendant)- Service of Process – When the defendant gets served notice that they’re being sued “You’ve been served”- Defendant’s Response – defendant can motion to dismiss, choose to respond, or Four Terms that you need to know when it comes to the verdict of a trial:- In accordance with Verdict – Have the judgment recorded so it can be enforced- Notwithstanding verdict – Losing team can say the verdict by jury was incorrect and ask the judge to rule correctly - Motion for new trial – similar to retrial- Appellate Procedure – Affirm, modify, or Remand (Remand = appellate court sends it back to first court and says they must rehear the caseIII. ContractsContracts- To have a legal and binding contract it must have a few things:1. Agreement (Offer and Acceptance) … Consists of an offer by a party and acceptance by an offeree2. Mutual Consideration – Bargain for exchange or what each party gets in return ex. 3% commission for selling a house 3. Legal Purpose – has to be legal purpose i.e. no contract for murder4. Legal Capacity – must be able to understand the terms of the contract2 Terms you need to know:- Lack of Genuine assent – When you sign a contract under duress it is not valid i.e. if someone put a gun to your head and made you sign it- Lack of proper form requirements – When, for example, an oral contract must be in writing to be enforceableState Common Law- The Uniform Commercial Code – Governs the sale of