AL Bar Practice Questions - Alabama Bar Examination Exam

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A plaintiff files suit in federal court asserting only a state-law breach-of-contract claim between a citizen of Alabama and a citizen of Georgia, with $40,000 in controversy. Does the federal court have subject-matter jurisdiction?

No, because the amount in controversy does not exceed $75,000 Yes, because the parties are diverse Yes, because contract claims arise under federal law No, because contract claims can never be heard in federal court

Correct Answer:

No, because the amount in controversy does not exceed $75,000

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