IA Bar Practice Questions - Iowa Bar Examination Exam

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A citizen of Iowa sues a citizen of Nebraska in federal court in the Southern District of Iowa, alleging $90,000 in damages from a car accident that occurred in Iowa. Which basis of subject-matter jurisdiction, if any, supports the federal suit?

Federal-question jurisdiction, because car accidents implicate interstate commerce Supplemental jurisdiction, because the claim is related to a federal claim No federal subject-matter jurisdiction, because the amount in controversy does not exceed $75,000 Diversity jurisdiction, because the parties are completely diverse

Correct Answer:

Diversity jurisdiction, because the parties are completely diverse

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