Crucial Exams

Multistate Bar Examination Practice Question

Alice, a resident of State X, and Bob, a resident of State Y, file a lawsuit in federal court against XYZ Corporation, which is incorporated and has its principal place of business in State X, and Charlie, a resident of State Y, for breach of contract. The amount in controversy is $100,000. Does the federal court have diversity jurisdiction over this case?

  • No, because not all plaintiffs are from different states than all defendants.

  • No, because there is no federal question.

  • Yes, because the amount in controversy exceeds $75,000 and there is diversity between some parties.

  • Yes, because corporations are considered citizens of both their state of incorporation and principal place of business.

Multistate Bar Examination
Civil Procedure
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