NJ Bar Practice Questions - New Jersey Bar Examination Exam

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A plaintiff domiciled in New Jersey sues a Delaware corporation in the U.S. District Court for the District of New Jersey, asserting a state-law negligence claim and seeking $50,000 in damages. The corporation's principal place of business is in Pennsylvania. May the federal court exercise subject-matter jurisdiction?
Correct Answer:
No, because the amount in controversy does not exceed $75,000

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