IL Bar Practice Questions - Illinois Bar Examination Exam

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An Illinois corporation sues a Wisconsin defendant in federal court in Illinois for a state-law breach of contract. The amount in controversy is $80,000. May the federal court hear the case under diversity jurisdiction?

No, because the amount in controversy does not exceed $75,000 No, because both parties must be from different states than the forum Yes, because there is complete diversity and the amount exceeds $75,000 Yes, but only if the contract was formed in Illinois

Correct Answer:

Yes, because there is complete diversity and the amount exceeds $75,000

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