Instructions: read the following case

The company XYZ Department Store, Inc. (hereinafter, XYZ), headquartered in the state of California, agrees to purchase coffee from the company El Rico Caf Corp. (hereinafter, Rico Caf), headquartered in Maricao, Puerto Rico. After six (6) months of supplying coffee to XYZ, Rico Caf decides to terminate the contract, since the purchasing company owes it $500,000.00. Rico Caf decides to start a legal action to claim the money owed. However, the coffee distribution contract between the parties does not provide in court what state a dispute between the parties would be resolved, should one arise.

1. What are the differences between the English common law system, on which the legal system of the state of California is based, and the civil law system, on which the legal system of Puerto Rico is based? 2. What effect will choosing to litigate the case in California or Puerto Rico have on the resolution of the dispute?

Imagine that Rico Caf decided to present their case in the courts of the state of California and that they do not agree with the decision of the court that received the evidence presented:

3. Discuss the typical levels of hierarchy that state courts have. 4. To which court would Rico Caf have to present its appeal to review the determination with which it disagrees?