Practice Quiz

CLEP Business Law

Category - US Legal System

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In order for a federal court to have subject matter jurisdiction over a matter:
  1. There must be diversity, and there must be at least $75,000 at stake.
  2. There must be a federal question.
  3. A and B.
  4. A or B.
Explanation
Answer: D. In order for a federal court to have subject matter jurisdiction over a matter there must be diversity, and there must be at least $75,000 at stake; or there must be a federal question. For diversity to exist, the parties involved in the case must be citizens of different states. For a federal question to exist, the plaintiff's right to recovery must be based on the U.S. Constitution, a Congressional act, or a federal treaty.
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