MBE Practice Questions - Multistate Bar Examination Exam

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A plaintiff from Ohio sues a defendant from Michigan in federal district court in Ohio, alleging breach of a $90,000 contract. The case is filed solely under diversity jurisdiction. The defendant moves to dismiss for lack of subject-matter jurisdiction. How should the court rule?

Deny the motion because the parties are citizens of different states. Grant the motion because the amount in controversy does not exceed $75,000 exclusive of interest and costs. Deny the motion because diversity jurisdiction requires only a good-faith allegation of an amount greater than $50,000. Grant the motion because federal courts have no jurisdiction over state-law contract claims.

Correct Answer:

Deny the motion because the parties are citizens of different states.

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