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Question One: The existence of the court hierarchy means that there are courts that are superior to other courts. One reason for this is if you are unhappy with a decision from a particular court you can appeal your case to a higher court. Another reason for the existence of the court hierarchy is the doctrine of precedent. This allows courts higher in the hierarchy to create a precedent that all lower courts must follow, making sure all cases are heard in a similar manner. Another reason for the existence of the court hierarchy is specialisation. This means the courts are able to specialise in their particular area of law. Question Two: The Magistrates’ Court is the lowest court in the Victorian Court hierarchy. It has the ability to hear up to $100,000 for all civil disputes including personal injury. All disputes that are under $10,000 go to arbitration. In its criminal division, the Magistrates’ Court can hear summary offences such as minor assault and careless driving, indictable offences heard summarily, committal proceedings, bail applications and warrant issues. The Magistrates Court has no appellate jurisdiction. Question Three: If this case were to be appealed, it would go to the Supreme Court on a point of law, in its trial division. The Supreme Court can hear unlimited amount civil claims. Question Four: Arbitration is calling in a third party called an arbitrator to listen to the facts of the dispute and make a decision on behalf of the parties. The decision made by the arbitrator is legally enforceable (binding). Private arbitrators may be asked to arbitrate on matters that were not able to be resolved through negotiation or mediation. Mediation is a joint problem-solving process in which the parties in conflict sit down and discuss the issue involved, develop options, consider alternatives and reach an agreement through negotiation. The mediator does not interfere, but keeps the lines of communication open. Although a decision reached during the...