FIN 240 Chapter 2: Finance 240 Chapter 2
Document Summary
Judicial review - process by which courts decide on the constitutionality of legislative enactments and actions of the executive branch. Enables the judicial branch to act as a check on the other two branches of government. Jurisdiction - authority of a court to hear a case and decide a specific action. In personam jurisdiction - court jurisdiction over the "person" involved in a legal action. In rem jurisdiction - court jurisdiction over a defendant"s property. Long arm statue - court can exercise personal jurisdiction over certain out-of-state defendants based on activities that took place within the state. Defendant must have sufficient connection to the state for the judge to conduced that it is fair for the state to exercise power over the defendant. Corporation normally is subject to personal jurisdiction in the state in which it is incorporated. Court of general jurisdiction - can decide cases involving a broad array of issues.
