Crucial Exams

Multistate Bar Examination Practice Question

A corporation headquartered in State X is sued by a company based in State Y for breach of contract. The lawsuit is filed in a State X state court, but the defendant seeks to remove the case to federal court. Which of the following conditions would allow the federal court to properly exercise jurisdiction?

  • The corporations are incorporated and headquartered in the same state; the lawsuit involves a discussion of federal contract regulations.

  • The amount in controversy falls below the jurisdictional threshold, even though the corporations are incorporated in different states.

  • The amount in controversy is greater than $75,000, and the two corporations are incorporated and headquartered in different states.

  • The parties mutually consent to remove the case to federal court and file a formal agreement.

Multistate Bar Examination
Constitutional Law
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