Paralegal Exam Prep

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.